MANILA – Single parents may face financial challenges due to inadequate income and the lack of support from a "back-up."
Jenny del Mundo, agency fundamental head at Sun Life Financial, warned single parents that this lack of back-up leaves the child’s future with uncertainty.
To maintain financial security despite unplanned disruptions like illness or disability or lay-offs, del Mundo advised single parents to get insurance.
“Your back-up against illness, disability and death is get the appropriate insurance to back you up so when it happens, you can pick up the pieces and move forward,” she said on ANC’s “On The Money.”
For job security, del Mundo advised single parents to keep their résumés updated, and develop their skills to make themselves more marketable.
She also said it would help to try out new projects or take an online course on a good business trend.
“It highly depends on your talent, skills and passion,” she said.
When saving for a child’s education, del Mundo said single parents should remember these three things: time, money, and interest.
“Start saving as early as possible, but be conscious of how much money you will put in. The more you save, the more you’ll have later,” she said.
Del Mundo stressed that single parents should consider that the price of education varies and will increase through time.
“The pace by which your money grows is very important so always look for instruments that give you better-than-inflation returns,” she said.
Del Mundo also advised against applying for loans for tuition, unless it is an emergency.
She suggested approaching family or friends for an interest-free loan, or apply for loans with the lowest interest.
“In order to prevent yourself from getting a loan, I believe in the mantra of living within your means, and if you have been doing that in a very disciplined way, you shouldn’t find yourself needing to take a loan for day-to-day expenses,” said del Mundo.
“If by choice or by default you found yourself in that situation, always know that you are still in control of everything. Clarify your goals, it gives you inspiration to move forward, to change spending and saving habits. Your goals allow you to make the right investment decisions, and the right career decisions,” she added.