Every parent has a single priority to present and develop the best available opportunities to help their children have a wonderful life. Whether a parent or not, we hope that our children have healthy, happy, and prosperous lives for all times to come. As a former single mother, I can truly attest to the motivation to ensure my children will always be well-prepared in life and business.
No matter how successful you are, money cannot buy happiness, but one cannot deny its value and necessity. Transferring your wealth to your offspring is a great way to ensure their well-being even after you are gone. Financial stability is something we all strive for, being a single parent with no inheritance or money to their name can pose serious problems.
What is generational wealth?
Simply put, it is an inheritance or legacy of substantial value that you can pass on to your offspring. A significant amount of generational wealth is an asset as it can bridge any wealth gaps that may exist for future generations.
Life can be tricky, and considering current scenarios, nothing in life is guaranteed - least of all a secure future. If you can provide your children with a pre-set amount, they can try their luck in life, and finding success can become easier for them.
Why is life more difficult for single mothers?
There are multiple reasons people get into relationships. However, one crucial reason they get married is that the institution of marriage comes with many comforts. If you are
a married couple, you can get access to tax breaks, housing, and children’s benefits, and since there are potentially two breadwinners in the house, the expenses can be split amongst them.
On the contrary, if you're a single mother, everything can become way more demanding than one can imagine. Single mothers face multiple problems while rearing their kids in every society; they belong to the most distressed class of any state or country, with almost 30% of families surviving below the poverty line in the US only.
Single parents, especially single mothers, are at a considerable disadvantage because of the gender pay gap - as if life wasn't handicapped enough. All these challenges can leave one baffled and in a state of bewilderment because no one ever plans on living a difficult life.
The silver lining, however, in all such situations is that there are specific ways and measures that a person can adopt to help overcome such disadvantages:
How to build generational wealth?
Let's be honest. Regardless of whichever society a woman comes from, she has to face more problems and work much harder to generate the same amount of money as a man does in the same situation. It’s a fact that women are considerably more underpaid than their male counterparts.
Nothing can be worse than having to leave work to take up the caregiving responsibilities for the family, only to end up broke with not a penny to their name. A single mother has to focus entirely on not just making ends meet every month. Still, she should also make sure to find ways of generating easy extra income by making sound investments in accounts with a tax advantage.
Here are a few steps that one can take to ensure success:
Find a side hustle
There is no point in working a 9-to-5 day job, followed by a second job which is just as demanding. All of this becomes a lot more challenging once the kids are school going; they need some time from the only parent they have. So investing in a side hustle is flexible enough to allow you to work from home, thereby allowing one to give quality time to their kids while making extra bank.
For instance, one can try being a virtual teacher. Multiple online spaces offer remote tutoring jobs, a lot of which have gained attention during the pandemic. Numerous businesses have closed their physical stores and have remained online even after the pandemic is dying down.
Another way of earning is to start a carpool service, that is if you have a suitable vehicle. You can pick and drop off other children in your community and make a means to earn through that. There is also the possibility of making deliveries of various sorts; they could be groceries or dry cleaning and washing. All the extra cash you gain can be used to build a wealth account for your kids to inherit. You can invest it to earn a profit, or you can keep it safe for their college fund.
Invest in your children's academic future
A college education is becoming extremely expensive everywhere, day by day. If you have young kids at home, it can be an excellent opportunity for single parents to invest
some money regularly to help their children get a proper education. An educated generation has a lot better chance to lead a prosperous life.
There are multiple education plans offered by investment institutions, and some government-backed plans to help pay student loans. You can invest in them to reap the maximum benefits for your children.
Invest in real estate
Real estate has immense potential to provide excellent returns on investment or ROIs. The value of a real estate asset usually appreciates over time, depending on its nature and current market trends. If you purchase a property - be it a house or a piece of land - and then keep it until all the payments are made, it will one day belong to your kids and grandkids.
They can either use it as a house to live in or sell it off in case another opportunity arises where they can avail the money that they get from the sale. There won’t be any extra fees to bear, except for the general insurance or utility bills.
Put up a space for rent within your house
If you're blessed enough to own a home, renting a part of it can help generate some good secondary income. It doesn't have to be a permanent deal; there are other viable options, like Airbnb, that can help nicely. Plus, you can choose to whom you rent out your space.
It's understandable how not everyone would feel comfortable sharing their home space with strangers, so in that case, other assets like your car can be used. People living in densely populated suburbs can rent out parking spots to make a bit of extra money.
Some people invest in insurance policies to help ensure their children's future. They are generally long-term investments, lasting up to 20 or 30 years, and your children will stand to inherit money when you’re gone or when the term is up.
These are some of the many ways that can help in ensuring a secure future for your children. If you need a sign and some help to start up, then look no further. Through it, all, be sure to stay proactive, and don't lose heart in the face of adversity.