ABOUT 38% of children live only with their mums but only a tiny fraction of Mzansi people have the income that makes single parenting possible.
Danelle van Heerde, head of advice processes at Sanlam Personal Finance, said: “Raising a child on one income is tough. This is why it is wise to speak to a trusted financial adviser to help put together a practical plan based on a the parent’s finances.”
Planning and structure are important for single mothers. They often have additional expenses when compared to dual-income families.
Tips for single mothers
No amount is too small: The effect of compound interest means that the earlier you start saving for the costs associated with parenthood, the better the returns. A tax-free savings account offers tax-free returns.
Make the most of maternity leave: If it’s possible, accumulate savings to supplement your income while on maternity leave as you will not receive a full income from your employer or the UIF.
Prioritise your needs: Don’t let the costs of having a child cut into your future financial wellbeing.
Work with a financial adviser to make sure you’re meeting your short-term needs while still saving for long-term goals like retirement.
Get dependable help: Raising children will likely be one of the most satisfying as well as stressful experiences of your life. If you’re raising a child by yourself, you should try to get the best possible support network you can.
Involve your kids: Involve the children in the household budgeting process as soon as they can understand what budgets are all about. Start with simple things for smaller children – the overall idea is to make them aware of and later, part of, the budgeting process.
