Unexpectedly,
we become a single parent. Maybe some
of us have made the conscious decision
to bring a child into this world in a
single parent home. For many women, being
a single mother
opens up a new door to financial and
legal worries. As
new mothers, we can become proactive
and take control of our future, to positively
impact our children's lives. As single
parents, we now have responsibilities
ahead of us concerning their future.
We
don't like to think about it, but what
happens if we die or become incapacitated?
Who do we want to take over guardianship?
If the father isn't involved, who would
you choose? It's also time to take a
good hard look at our spending habits
and prepare for this little one who has
entered, or about to enter, our life.
If
you have been avoiding your own financial
well being, and legal issues, it's time
to step up. You may have a great job
and make excellent income, or you're
like the majority of single moms and
you are struggling to make ends meet.
With either scenario, preparing for your
child's future doesn't necessarily require
loads of cash, just some leg work.
If you're like many single mom's, with an average
income, building a nest egg or making out your
will and living trust seems unfeasible. It's
not. Take these few little steps and make a
big difference in your baby's life.
Here are 3 things you should consider:
1. Draft or update
your will and set up a living
trust-
What is a will?
A
witnessed legal document that
dictates what happens to your
assets after you pass away.
It enables you to determine
who will act as your children's
guardian, and who will execute
your financial and personal
affairs after your death.What
is a living trust? In case
you become incapacitated or
terminally ill, a living trust
carries out your wishes with
someone you trust acting as
power of attorney, while you
are still alive.
Why should you set up
a will and a living trust?
Verbal
instructions and plans do not
hold up in court. If you do
not have a will, or living
trust, guardianship of your
child could be left to a probate
judge and the state, without
regard to your wishes.
How do I set up a will
and a living trust?
You
could contact a lawyer, a paralegal
service, which may be less
expensive, or you can do it
yourself. There are websites
devoted to law, that have forms
available for download. You
can take them to a notary and
have them witnessed and signed.
To buy the form online on some
websites like findlegal.com
charge $9.00 for a will. Costs
vary on having it notarized.
Shop around.
View
Legal Forms Here on this
site
2.
Start saving for college-
Consider opening up an investment account
for your little one. Many banks
offer plans with little initial
investment. Gerber also has a life
insurance plan that grows with
your child, for loose change in
your pocket. It's up to you to
how much you want to invest. Start
somewhere. Research your options
at a site like www.schwab.com
Here
is a calculator to figure
out what will it take to
save for a college education
3.
Create a budget- Budget?
ICK! In order to start saving
we need to create a spending
plan. Budgeting takes time,
but it's well worth the effort.
Track your spending-
Yes,
track your spending by carrying
a little notepad with you and
write down EVERYTHING you spend
your money on for 3 months.
From that Frappucino to the
ink for your computer printer.
You will have a clearer picture of
where you are financially and the
steps you need to take to get things
in order. This way, you will have
more money to invest in your child's
future - be it $10 extra per month
or $100.
Pay
off those high interest credit
cards.
You can create a spending plan. There
are some ideas on how to get started
by using this tool at PracticalMoneySkills.com
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Making
a small step in each one of these three
areas will make a substantial difference
in your child's well being. Knowing you
made the effort will give you the peace
of mind that you, as a single mom, deserve
and need.
Note: Neither
the author of this article, nor this
website are in the business of offering
tax or legal advice. You should consult
with your professional advisors to
examine tax or legal aspects of any
topic presented.
_____________________________________________________________________
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