How single mothers can strengthen their financial muscle

Sylvia Walker, market development manager at Old Mutual

"It is estimated that around half of single mothers receive no financial support," says Sylvia Walker, market development manager at Old Mutual and herself a single mother of two. "This leaves them financially more vulnerable and generally worse off."

The burden is escalated by social pressures and the perceived need to "keep up with the Motsepes". Most mothers would like to give their children the best they possibly can and live an acceptable lifestyle with a severely compromised income. Often this means that single mothers have to work full-time or, in some cases, are working two jobs or putting in overtime.

Those mothers who are single parents often find that there are never enough hours in the day, so they need to ensure that their financial plans suit their demanding needs.

Stay away from debt

"Households simply need to cut their coat according to their cloth," says Walker. "The biggest consideration as a single mother is not to fall into a debt trap." Debt is often used to fund expenses to live a specific lifestyle, which can lead to a situation that spirals out of control.

Save, save, save!

Life is more demanding, with food, clothing, school fees, medical expenses etc. ... and saving a single cent does not seem like a feasible option. The answer is to "pay yourself first". If possible, arrange for a deduction directly from your salary, so that your savings are separate and not factored into your household budget. These savings should be for a rainy day (emergency money) as well as for longer-term needs such as tertiary studies for your children.

Think about your future

Money is tight, and already there is so much to think about financially. "We want the best for our children," says Walker. "But the rising cost of education cannot be avoided. Therefore it is important to be open with people about your financial situation. Many schools will make allowances for learners whose parents are under financial strain. Rather put your pride in your pocket and apply for financial relief than go into debt to pay school fees at the full rate."

Have a financial plan and stick to it

Walker adds that single parents face an additional challenge. There is no spouse or partner to fall back on in times of a financial crisis, so cover for severe illness, death and disability becomes even more critical, as their income and their children's future need to be ensured, no matter what happens.

Women on average also live five to seven years longer than men, highlighting the pressing need to also save for retirement.
Are you part of the sandwich generation?

"Single mothers working full-time jobs often need additional childcare support while they are at work," says Walker. "Many of these women would prefer to have their ageing parents, who have the time and perhaps little money, assist them."

No less than 41% of single mothers who responded to the Old Mutual Savings and Investment Monitor form part of the sandwich generation - financially supporting both their children and parents.

"Single mothers often find this type of arrangement worthwhile," adds Walker. "Why pay a stranger to care for my child when I can pay my parents? That way I can trust the caregivers and support my parents at the same time."

So where to start?

Though single mothers have more responsibilities on their shoulders than their married or childless counterparts, the message rings true for everyone - consult a financial adviser to get on the right track to achieving your financial goals throughout your various life stages.

"It's up to each and every woman to take control of her future," concludes Walker. "There is no magic wand or formula, just discipline and proper financial planning, which are key elements in securing financial freedom."