If you’re raising kids on your own, finances are probably a constant concern. Here’s help
MANAGE YOUR MONEY
It’s easier to take control of your finances than you think, says Christelle Crous, a single mother from Cape Town. Create a budget that lists your income and expenses. Identify your big spends: a home or car that costs too much; unnecessary credit or shop card debts and reduce them.
A financial adviser can draw up a personal financial plan that ensures your essential expenses are covered, prioritises your debt repayments and gets you to start saving. Some advisers just charge a consultation fee for their advice.
INVOLVE YOUR KIDS
Have a monthly house meeting with your children. Share your plans and challenges with them in an age-appropriate way and ask them to comment. It might, for example, be an eye-opener for teens to learn about the high cost of electricity and mortgage and car finance repayments.
Make planning and saving for specific expenses such as holidays a team effort. This teaches kids to be responsible about money. If they cooperate, things become easier for you as a parent, Crous says.
SAFETY NET
Losing your ability to earn is a major risk. Compare the cover and premiums of income protection policies that pay out when you get a serious illness or become workdisabled, for example.
Set aside money every month to create an emergency fund. This will prevent you having to go into debt when you have unplanned expenses such as fridge repair or medical bills. Your emergency funds should be kept in a bank account or unit trust fund that gives you access to your money within at most 48 hours.
FIND WAYS TO SAVE
Be creative and practical, Crous says. Look for opportunities to earn extra money, such as selling ice cream at a school sports day. This will also teach your child about entrepreneurship.
Don’t be embarrassed to buy quality items from the school clothing bank at reduced prices. You could also apply for a reduction in school fees, and lift-share with other parents to save petrol.
Make saving fun, such as having a regular candlelit supper to save electricity.