Single mom ‘check list’ to get you through financial storms
Being a single mother means taking on so much more responsibility, and often carrying the world on your shoulders. Statistics reveal that one in two moms are single, and of these, only 12% of the fathers are regular contributors to their children’s financial wellbeing. This is according to the 2016 Old Mutual Savings and Investment Monitor which involved over one thousand urban professionals.
John
Manyike, Head of Financial Education at Old Mutual says single
parenting is a growing reality worldwide.
“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, the survey showed that the poorer the
household in terms of income, the higher the likelihood
of single motherhood”.
Unfortunately,
single mothers are faced with double the work, stress, tears and
financial difficulties.
“Especially during the current tough and uncertain economy, the word
difficult becomes an understatement. However, this is the time where
planning is absolutely crucial. Making sure you are prepared -
emotionally, physically and mentally - is key to your peace-of-mind,”
Manyike says.
Never
leaving anything to the last minute, always thinking ahead and planning
accordingly will assist
and guide single moms through various storms that they are presented
with in their lives. “It is essential to start at the beginning and
think about every milestone that will present itself in your child’s
life. These include school fees, uniforms, stationery,
extra-mural activities, extra lessons, daycare, matric dance,
university tuition and the list goes on. Without becoming overwhelmed,
set a reasonable plan in place and assign an estimated budget to cover
these expenses that you will need to save toward. By
doing this, the challenge of being a single mom and being financially
stable becomes more achievable,” says Manyike.
Although raising a child as a single parent has its challenges,
Old Mutual
financial education has a few tips to assist single mothers to cope with raising our future leaders:
1.
For
new mothers, the minute your pregnancy is confirmed, start putting
money away into a savings account. Take into account your potential
medical expenses as some medical aids don’t give 100% maternal
benefits. You can start with as little as R200 per month - the important
thing is to start, and to start today.
2.
If
you have a new family member on the way, Consider nappies and baby
gear, a caretaker for when you return to work, nursery school for
when your baby is older, and eventually school. Take a step back and
consider the potential expenses that are likely, and be better prepared
for what is to come.
3.
Charge
down your debts to limit your financial obligations when you are on
maternity leave or speak to your creditors to arrange lesser
monthly installments so that you can cope during this period
4.
Contact
a financial adviser and start the conversation around saving for your
children’s education. School fees, unfortunately, increase
every year and saving long before the time comes will give you peace of
mind.
5.
Compile
a comprehensive financial plan and live by this plan. We all know that
things happen and circumstances change but notify your financial
adviser of any financial changes. This will ensure that changes are
implemented into your financial plan and allowances are made where
necessary. More importantly, stay committed to it - no matter what
happens!
6.
We
all want the best education for our children and often our first choice
in schools are far from our homes. Prepare yourself for the rising
transport costs and school fees. An alternative to this is to rather
look for schools closer to you or move closer to the school to cut the
transportation costs.
7.
Keep saving.
No matter what, don’t stop saving. Be committed to your long term goals
such as a university degree for your child.
Become emotionally attached to seeing your child getting a degree – and
that vision for the future will fuel your commitment to saving your
money, especially in those months when it is tough to do so. Many
government schools offer school fee exemptions to
parents who cannot afford to pay their full school fees monthly. Speak
to your school principal and make use of this service to ease your
burden a little.
8.
Don’t
put yourself under pressure by trying to “keep up with the Kardashians,
the Khumalo’s, or the Karims.” Dress your children according
to what you can afford and don’t open clothing store accounts if you
cannot afford to pay the total monthly fee. It is good advice that if
you cannot buy it cash, then you shouldn’t buy it at all.
9.
Prioritise!
Shop at cheaper stores, change to cheaper brands, compare prices, pull
back on holidays, DSTV and other luxuries. This is the
time to go with what you need not what you want.
10.
Learn
to say NO! Children can push you into buying things just to keep up
with their friends or the latest fashion trends. It is much wiser
to teach your children about budgeting, pocket money and financial
restraints, than to give in to their demands for new things. If there
is a pair of takkies they are desperate for, sit down with them and work
out a financial plan to save the money. Once
the money is saved, and the takkies are bought you can be sure your
child will have a much higher appreciation for that item.
“Raising
children is already a huge responsibility and challenge, and being a
single mother brings another
dimension to this. Planning, prioritising and managing your financial
situation is the first step to financial well-being, and giving your
children the best you can give them. This Mother’s Day we celebrate all
the sacrifices that our mothers and lady guardians
have made to give us the best life that they could afford,” concludes
Manyike.
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