How to survive single parenthood
"Know what you can afford, stick to the plan, and decide what should be financial priorities. Remember there is nothing you can't recover from.
MALALANE – Being a single parent is a challenging task, especially when it comes to financial obligations. When you consider school fees and money for extra-curricular and school activities, food, clothing and health-care fees, it seems impossible to afford everything.
Mr Alfred Ramosedi, African Bank’s Group executive for sales and marketing, says it is possible to come out financially stable at the end of the month with good budgeting and discipline. Here are a few tips:
• Do not overcompensate. Single parents often feel guilty over the absence of a second parent and try to compensate by buying expensive gifts or spending more money on the child than they should. It is better to teach your child the value of money and spend as much time with them as possible.
• Draw up a realistic budget and teach your kids to respect it. Tell them that you have a certain amount of money available for necessities and only a small amount for things they really want. Educate your children about saving up for something special like a seaside holiday or a weekend trip to the Kruger National Park.
• Pay necessities like bond repayments, rent, food, school fees and uniforms first, before looking at luxuries like sweets, new clothes or lavish kiddies’ parties.
• Remember to pay off debt as quickly as you can, as it will accumulate and interest rates increase. Try to start a savings or investment account and regularly deposit small amounts. It adds up to quite a bit if you don’t touch it for a few years.
• Try to make extra money where possible. Take stock of your skills and identify business opportunities in your area. This can include making and selling pancakes or hotdogs at a local market or shopping centre, selling cosmetics or jewellery, or selling cookies or other crafts in the neighbourhood.
• If you struggle with paying school fees, find out whether you can get any discount or exemption from fees. Most schools do try to accommodate parents who are having a tough time.
• Adjust your lifestyle. Get a less expensive car, sell goods you don’t need to pay off debt or start a savings account and try to buy no-name branded foods and clothing which are usually more affordable.
• Don’t make debt if you don’t have to. Try saving up for something you want and you’ll end up paying thousands less in interest on personal loans and retail accounts.
“Know what you can afford, stick to the plan, and decide what should be financial priorities. Remember there is nothing you can’t recover from.
“In five years you can work yourself out of a bad financial position with a good plan and the right expertise.
“Don’t be afraid to speak to a financial consultant if you need help with budgeting. Just because you are a single parent, doesn’t mean you have to do it all alone,” Ramosedi advises.
