According To A New Survey, The Average Single Parent Needs At Least $332,705 In The Bank To Feel At Ease While Raising Their Child
It’s no secret that having kids now is more expensive than ever. But just how much dough do parents need to feel at ease while raising their children?
According to a recent study entitled “Single Parents and the Financial Future,” the average single parent claimed they would need at least $332,705 to have peace of mind.
This random double-opt-in survey was commissioned by Life Happens– a nonprofit that works to educate consumers about the value of life insurance– and conducted by OnePoll. It included 2,000 single-parent respondents who were evenly split– meaning 1,000 mothers and 1,000 fathers participated.
Now, despite the respondents acknowledging that they would need a lofty amount of cash to feel at ease while raising their child, only 10% of single parents began planning for their child’s financial future prior to them being born.
On the other hand, about 43% of single parents admitted to not financially planning until their kid reached early childhood– or were between the ages of 4 and 6. Additionally, 7% still have not yet begun planning for their children.
Interestingly, single fathers reported feeling more confident than single mothers in regard to solidifying their child’s financial future. Approximately 69% of single dads felt confident in this realm, as opposed to 58% of single moms.
Still, the consensus among 75% of respondents– regardless of gender– was that becoming a single parent is definitely overwhelming.
The survey revealed that the average single parent thinks about their kid’s financial future about five times every single day.
Seven in 10 respondents– or 69%– also claimed that just becoming a parent is a huge financial burden, which is only compounded once becoming the sole provider in a household.
Jeff Bergen/peopleimages.com – stock.adobe.com- illustrative purposes only, not the actual people
Single parents are spending an average of $14,150 each year on childcare. Some of the top expenses that respondents felt unprepared to handle alone included groceries and healthcare at 56% and 49%, respectively. Bills also tied with healthcare at 49% and creating a savings account clocked in at 48%.
To handle these overwhelming demands, about 42% of single parents have gone into debt for their kids. Additionally, 52% of respondents reportedly made changes to their work or career in order to better support their child’s financial future.
Some of these changes included negotiating salary (53%), finding a new job that offered a better work-life balance (53%), and obtaining more flexible work hours (51%).
About 48% of single parents also got a second job; meanwhile, 42% opened a side business or began freelancing to earn additional income. Finally, 25% of single parents reportedly downsized to create a living situation that was more affordable.
“Parenthood brings many new expenses, including some unexpected ones, but it can be especially challenging for single-parent households,” said Barb Pietrangelo, chair of Life Happens.
“As your child’s main source of emotional and financial support, it’s important to plan ahead to ensure they’re financially secure in the event you are unable to be there for them.”
Approximately 57% of single parents set aside specific amounts of money each month to manage their financial responsibilities. About 52% of respondents bought life insurance policies to ensure financial security for their children; meanwhile, 43% invested in education savings plans.
Still, 59% of single parents reported that if they were to die unexpectedly, their savings would be relied on. Additionally, 57% of respondents claimed that extended family would be relied on to help support their child.
To read the survey’s complete findings, visit the link here.
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