Life is full of unexpected surprises — some joyful, others more challenging. Regardless of what comes our way, we do our best to adapt.
Whether you’re a single parent by choice or due to circumstances like divorce or the loss of a partner, raising a child solo can be both rewarding and demanding. In this economy, managing household expenses on a single income isn’t easy.
For example, are you currently looking to get an online loan to deal with emergency expenses? Do you often need urgent money? Are you dreading the holidays because of the expenses? Do you often have to say no to your child because of monetary constraints?
It may be time to reconsider your finances.
Budgeting is a good way to deal with any financial circumstances, especially if you are a single parent. While sharing the joys and challenges of raising a child with a partner has its own perks, doing it alone also gives you ample opportunities.
We’ll look at some of the best budgeting hacks for single mothers and fathers that will help you live within your means while providing the best possible upbringing for your child.
1. Create a Budget
The first step is budgeting. Write down all your income (primary income, any side hustle or investment returns) and expenses. It doesn’t need to be super complicated; you can simply do it on an Excel spreadsheet, on a notepad or on a budgeting app.
Having your expenses and income written down helps you with budgeting, identifying areas where you need to cut back, and places where you can allocate any extra funds.
While raising a child, you might have to focus on your child’s development and wishes and wants, but you must safeguard your and your child’s future.
2. Prioritise Expenses
Wants and needs can often feel overlapping, especially when it comes to your children. However, it’s important to keep a level head and make the choice.
Needs are expenses such as childcare, rent/mortgage, and utilities. Wants include holidays, birthday parties, and other forms of entertainment, such as taking your child to an amusement park.
You should always prioritise your needs over your wants in order to stay on top of your necessary expenses.
3. Build an Emergency Fund
As a single parent, the first thing you must do as part of your financial planning is build an emergency fund. Make sure you set aside six months of your necessary expenses, which include your housing expenses, transportation, groceries and child care.
When you have a child depending on you, you must always have provisions to take care of any untoward situation.
Job losses or pay cuts have become very common in the current economic climate, making emergency funds an absolute necessity.
4. Check for Benefits and Allowances
Are you a divorced mother with a child? Make sure you get regular alimony and child support from your spouse. Speak to a lawyer or financial advisor to determine the optimal child support.
As a single parent, you are entitled to several benefits:
- Universal Credit: If you are above 25, you are entitled to £400.14, but those with children may receive an additional Universal Credit payment. Those with special needs kids get additional benefits depending on their child’s level of assistance. At the lowest spectrum, you receive £156.11, and the highest amount is £487.58.
- Council Tax Reduction: Single parents are entitled to a 25% reduction on the council bill. However, the exact reduction amount might depend on individual circumstances.
- Child Benefits: Single parents can apply for child benefits if they are solely responsible for a child below 16 years. You can receive an allowance of £25.60 per week for the eldest/only child, and for any subsequent children, you get £16.95 per week.
Local council officials, attorneys and financial advisors can help you determine which benefits apply to your case.
5. Pay Off Debts
Having debt is pretty standard, but it poses a problem if you don’t pay it back on time.
You start incurring interest and fines, which increase the amount due, making it even more difficult to repay. Always prioritise debt repayment over savings and investment.
Paying off debt on time has several benefits; it gives you a positive credit score, the debt-to-income ratio remains low, and it makes it easy to get new loans when the need arises.
In Summary
Raising a child is challenging, but the most fulfilling experience.
As a single parent, you must remain kind to yourself and remember that you are doing the best in the situation. Be careful not to overwhelm yourself with too many tasks, because unless you feel your best, you cannot do the best by your children.
Seek help from friends and family when you find yourself struggling with chores. Teach your children from an early age about money and budgeting.
Kids are highly perceptive, and an early initiation to money can make them more responsible and financially savvy adults.
While making provisions for your child, remember to also set aside some time and budget for your self-care and needs.