If you are a single mother and struggling to make ends meet, you’re not alone.
Monitor, one in two mothers are single. And of these, only 12% of their children’s fathers are regular contributors to their well-being.’Our study revealed that not only is every second mom single, but that there is a 33% probability that she is also supporting one, or both, of her parents. Furthermore, it showed that the poorer the household in terms of income, the higher the likelihood of single motherhood,’ says John Manyike, head of financial education at Old Mutual. But, not having a partner doesn’t mean that you have to go into financial freefall. There are several things that you can do to ensure that you take control, and cater to the needs of your children and household. Here are some ways to do this:
Don’t ignore your problems
According to financial planner and author Sylvia Walker, you may be accustomed to not mentioning your money problems to your children. This may be in order to protect them from the harsh realities that you face.
But, this is the wrong thing to do. ‘Face the reality of your current financial situation and live within your means,” Sylvia advises. ‘Explain the situation to your children. Do not give them too much detail, but ensure that you explain should there be no money for luxuries, outings, etc. Be honest with your children. But, don’t burden them with a feeling of despair or leave them feeling that they are the reason for your money problems,’ she adds.
Stick to your budget
Divide your budget into two categories – necessities such as food, clothing, bond repayments or rent and luxuries such as eating out, movies, holidays, etc. ‘Be mercenary and cut out any unnecessary spending. These amounts will add up and assist you in building emergency savings that will alleviate a lot of pressure,’ says Bernadine Lewkowski, senior financial planner at Alexander Forbes. Find ways to save money to accommodate your budget and expenses. Sylvia recommends joining a lift club to save on petrol, applying for a reduction in school fees and finding cost-effective ways of entertaining your children, such as going for a picnic.
Don’t cancel insurance policies
If you have a decent car and well-maintained home or you and your kids are healthy, you may wonder if you need some insurance policies. These include a medical aid scheme and life, car or home insurances, especially when going through tough times. Insurance is often seen as a grudge purchase because you don’t get something out of it, unless you claim. ‘But, you don’t want to find yourself in a situation where you need to claim, but cannot do so,’ warns Bernadine.
Review your service provider and seeif it still offers you value for money compared with others. Make sure that you compare like for like, as not all insurance products are the same. If it gets confusing, talk to an accredited financial advisor. Find out if it offers you any useful services that save you money. For example, if you are a Bonitas Medical Aid Scheme member, it offers you free access to Babyline, a 24-hour children’s health advice service (they must be three years or younger)
Avoid debt or pay it off
If you have more than one account, Bernadine advises that you choose the smallest and pay it off first. ‘This will give you a sense of achievement and the confidence to move on to the next one,’ she explains. Also, following a divorce, you may feel bad that your children no longer live the life that they’re accustomed to. ‘The guilt factor may creep in. Single parents may try to compensate for this guilt in some way – perhaps by spoiling the kids (and running the risk of debt),” Sylvia explains. Avoid keeping up with your neighbours or former life. Dress your children according to what you can afford, and don’t open accounts if you can’t pay for them. ‘If you can’t buy it with cash, then you shouldn’t buy it at all,” John adds years or younger).
Save for a rainy day
It is vital to save money for your child’s education or unforeseen expenses such as a car breakdown. This is because private education just from crèche through to high school can cost up to R1.5 million.
‘The new tax free savings account allows you to contribute an annual lump sum of R30 000 or R2 500 per month. All future growth as well as withdrawals will be tax free,’ Bernadine says.
Make extra cash
You don’t only have to rely on a single income to pay your expenses. ‘Look for ways to generate an extra income if money is tight. This is through online surveys, freelance work utilising your skills (visit websites upwork.com or freelancer.co.za) or perhaps renting out a room,’ Sylvia advises.
Create a will
While you may be fit and healthy, and not willing to think of the possibility of dying, it is always wise to havea backup plan and create a will. ‘Under the South African legislation, a minor child cannot receive a benefit directly from a deceased’s estate. Make sure that you have a valid will with clear instructions as to how you wish for your assets to be distributed. If anything should happen, you don’t want the winding up of your estate to be delayed because the Master’s Office needs to appoint an executor,’ Bernadine concludes.
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