4 Things All Parents Need: Prepare for Life’s Unexpected Situations

Beyond the basic necessities of providing for a family, there are 4 things that all parents need. All too often I hear of stories of people not having one of these items. Life can throw some series curveballs at times. Having the proper things in place could help ensure you can handle the unexpected.

Abby and I follow a lot of financial advice by Dave Ramsey. Dave Ramsey is a Christian financial advisor who has helped millions of people manage their personal finances.

This article is for informational purposes only. It should not be considered financial or legal advice. Not all information may be accurate. Consult a financial professional before making any significant financial decisions.

1 – An Emergency Fund

56% of Americans don’t have more than $1,000 in their bank account. [1]

An emergency fund could cover those unexpected life events. I know from experience that plenty of them will come! House issues, medical issues, vehicle issues, and so on. 

Dave Ramsey recommends a $1,000 emergency fund for a starter emergency fund. Then eventually 3 to 6 months of expenses saved for a fully funded emergency fund. For example, if you spend 2,500 dollars a month on living expenses (home, food, insurance, etc.), you would need to have 7,500 to 15,000 eventually saved.

A fully funded emergency fund doesn’t have to be all cash. But it should be liquid enough that you can pull money out whenever needed.

2 – Life Insurance

All parents should have life insurance.

Regardless of your employment status (ex: stay-at-home mom, student, working odd jobs), life insurance is still essential.

Almost half of Americans will leave their families in financial distress when they die. Almost Half! Only 52% of Americans have life insurance, and out of that group, most people aren’t adequately insured. [2] In other words, too many families are unprepared. Are you prepared?

Dave Ramsey recommends 10-12 times your annual income. This is to ensure your family can keep the same way of life after you are gone. If you make $50,000 a year, your policy should be $500,000 or more.

Is life insurance worth it?

Yes, without a doubt. As difficult as the reality may be, we won’t live forever. The Bible talks about how our days are numbered (Job 14:5, Psalms 139:16). When that day will be, we don’t know. But we should be prepared to provide for our family while we are here on this earth and when we are gone. Providing for your family even after death is part of leaving a legacy.

Different types of life insurances:

The two main insurance types are term and whole life. You can see the other insurance type here. Some people try to handle life insurance as an investment as well. I personally believe in keeping life insurance for simply what it is: life insurance. That is why I typically recommend term insurance to people. You can read more about the difference between term and whole here.

Is life insurance expensive?

The price is dependent on a lot of factors, such as age, gender, policy type, health, medical history, and work or hobbies. However, people assume it’s too expensive without first getting a quote.

I recommend utilizing an insurance broker to get the best rates. Insurance brokers get quotes from a bunch of different companies to provide you with the most fitting and cheapest option. I used Zander as my insurance broker found here.

3 – A Will

By most estimates, anywhere from 50–60% of Americans don’t have a will. [3]

A Will allows you to speak when you’re no longer able to. It allows you to pass along your assets to the appropriate people. It can save your loved ones a lot of time, money, and stress. If you are a parent to minors, then a Will would outline exactly where the child or children should go.

If you don’t have a Will, the court system gets to handle your estate and the placement of your children. Would you want to leave anything in the government’s hands? I personally wouldn’t.

4 – A Legacy Drawer

A legacy drawer is typically a place within your home that contains important documents your family would need in the event you were to pass away or become incapacitated. Often times a drawer or safe would serve as a legacy drawer. Having life insurance and a Will is awesome, but if no one could locate the information, that isn’t good.

I recently did this. I recommend doing the same with your family.