36 The Christian Reader November 2006
Financial considerations
for the single parent
It’s tough enough bringing up children as a single parent. As both mother and father, single parents have so
much to do that they can often forget about taking care
of their finances. If you are a single parent, here are
some ways to ensure that financial considerations
don’t slip through the cracks.
According to the U.S. Census Bureau, 27% of children – more than 19 million – live in households with
only one parent. (U.S. Census 2000 Special Report,
Children and the Households They Live In, issued
February 2004.) Some children were formerly in twoparent households in which a divorce or death
occurred, while the rest have always lived in a single
parent household.
On your own
If you are a newly single parent after going through a
divorce, there are a few items you will want to consider taking care of immediately. First, make sure that
you have a checking and savings account and credit
cards that are in your name. Don’t assume your credit
is clean; check it out through one of the three major
credit rating agencies. Next, make sure any assets,
such as a home, are titled in your name. You’ll also
want to check your beneficiary designations to update
your new situation.
Basic estate planning
It is extremely important to establish a will and power
of attorney whether you are newly single or always
have been. If you don’t have a will, consult an attorney and make one out as soon as possible. One of the
major issues you will need to address in the will is
guardianship of your
minor children.
Don’t assume that a
person you name
guardian will want
the responsibility.
Talk it over with that
person first.
Protect your
family
Life insurance and
disability income
insurance are important in two-parent
households, but they are
vital in a single-parent
household. Adequate life
insurance can help ensure
that your plans for your children, including a future
college education, are financially possible should you
die prematurely. Just as
important is the need to protect your earning power with
disability income insurance.
You may be able to buy lowcost group disability income
insurance through your
employer, or you can check
out buying an individual disability income insurance
policy through yo \