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A Single Parent’s Guide To Family Finance

Whether you’re doing the parenting thing solo or you share custody of the kids with an ex, being a single parent adds an extra layer of complexity to making smart financial choices for the whole family.

You only have one income, and you don’t have another adult to consult with about financial decisions.

However, you can still responsibly guide the family finances.

A Single Parent's Guide To Family Finance

Navigating Shared Parenting

The other parent of your children may have very different ideas about money than you do.

It would help if you approached this in the same way that, ideally, you do any other conflicts and try to avoid discussing them.

This adds an extra layer of a challenge because your children might see a completely different set of financial values exhibited by that parent.

However, it would help if you focused on what to do instead of what not to do and avoided discussing the other parent’s choices.

Make it a Family Affair

There are likely many adulting tips you wish you knew sooner in your own life. This is reason enough to age-appropriate ways for your children to get involved in the family finances.

You can talk to children about the prices of things, such as a treat they want at the grocery store or a game, and let them see the difference in what they can get with the same amount of money.

They can also participate in planning things such as a family night or a family vacation, looking at the options available given a specific budget.

As they age, you can help them open a bank account and start understanding concepts such as credit cards, loans, and investing.

Start Investing in Real Estate

Real estate is a great way to do that if you want to build long-term wealth that can generate income for you and that you can pass on to your children. If you’re trying to choose the best market, real estate in college towns is a good choice for several reasons, including the large pool of tenants.

Many students prefer the freedom and affordability of housing off-campus.

In addition to the many students, your potential tenants may be professors and other college employees.

You can find out more about the best choices among the many U.S. college towns using the criteria of rental rates, income potential, renter occupancy, and the overall housing market.

Building Your Investment Potential

Not everyone can start investing in real estate right out of the gate, so if you’re still trying to build savings and wealth, you can begin much smaller, with just a few thousand or even a few hundred dollars.

Open an online brokerage account to start building a portfolio.

You can also get the kids involved with online investment simulators.

Remember as well to fund your retirement account even if money is tight. Although it can feel like this is taking money away from your children, in the long run, it ensures that you are financially secure as you age.

When your kids become adults, they won’t have to worry about your financial situation.

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