WHETHER you’re a single mother or father, raising children alone is always difficult.
But Alfred Ramosedi, group executive for sales and marketing at African Bank, says single parents can manage if they are disciplined with budgets.
“Know what you can afford, work out the priorities and stick to the plan.”
He said parents should speak to a financial consultant if they needed advice on how to make effective budgets.
He also touched on various issues which single parents should be aware of:
Create budgets with your kids
Talk to your children about the household budget and help them understand what money is available for what’s needed and wanted.
Don’t overcompensate
Parents fall prey to guilt by buying expensive gifts and spending more than they should on their kids. Your heart will be your undoing.
How to make extra money
There are number of ways to earn extra cash if you are savvy and dedicated. Every bit helps.
Pay for what’s needed first
Make sure the necessities in your budget are labelled. They should include expenses such as bond repayments or rent, food, school fees, medical aid and uniforms.
Make sure you save or pay off debt
Don’t keep putting it off as debt will accumulate as interest rates increase. The same applies to savings. Even a small amount invested in the correct savings product could yield good returns in a few years.
Consider applying for a fees exemption from government
There is a possibility of getting a full or partial exemption from annual school fees. Take the time to find out how the process works and it could pay off.
Downgrade if you need to
Have a look at the type of car you drive, where you live and where you shop.
Decide whether it makes sense to adjust your lifestyle in order to have more disposable income at the end of the month.
It is also a good opportunity to sell what you don’t need and use the additional cash to invest or save.
Don’t take on anymore unneeded debt
Remember that you pay interest on personal loans and retail accounts. In the end, you are paying far more than if you had bought the item with cash. If there is something you want, save for it.
