For all parents it can be incredibly tough to juggle work, manage a home, and tend to the never-ending needs of children. If you’re a single parent, it’s even more difficult.
Single parents have to perform so many different roles that sometimes you just aim to get through each day, one day at a time. But making sure long-term plans are in place is as important as handling the daily logistics. Two of the top priorities for anyone raising kids alone is providing for their education and having a will in place.
Education is vitally important to help equip your child to achieve their goals in life. Unfortunately, it can also be incredibly expensive – a real challenge especially when you’re making ends meet on a single income.
Adding to the challenge is the fact that in South Africa education inflation tends to outpace general inflation. Having an education savings plan in place is one way to help you cover these costs. An Old Mutual financial adviser can give you guidance and support in choosing the right education savings plan based on your individual circumstances. Options include Old Mutual Unit Trusts, an Old Mutual Invest Flexible Plan, and a Tax-Free Savings Plan.
Drawing up a will may be low on your list of things to think about but it is arguably the most important. All parents hope their children will be well looked after in the event that they die. Having a valid will in place can ensure this happens – especially if there isn’t another parent to take over.
It’s imperative to appoint a legal guardian to care for minor children, as well as stipulate how your estate will be dealt with to ensure that the needs of your children will be met. Discuss the option of creating a trust with your Old Mutual adviser to make sure that the assets earmarked for your children are looked after until they are old enough to receive their inheritance.
Single parents may be used to handling everything on their own but when it comes to setting up a financial plan there really is no need to do it alone. A qualified Old Mutual financial adviser is just a phone call away and can offer expert advice and all-important peace of mind.