Budgeting for single mums

You have so much to think about besides finances as a single mum. But it's essential to stay on top of your monthly budget regardless. 

If you struggle to make ends meet, know that you aren’t alone. It is possible for single mothers to survive financially.

 Here is a quick checklist of things all single parents should do to build and stay on top of an adequate budget and establish security for the future. Each is a step in the right direction.

 Financial planning for single parents starts with a strict but reasonable budget. 

 To create your single parent budget start with an overview of your finances. It’s essential to know how much money you have and what you are spending it on. The start will bills! 

 Pro tip: connect your accounts to an app; every bank has a mobile bank app. The app features labels and categorises and helps track all of your income and spending, giving you both a high level and detailed view of your activity and balance.

From here, analyse your spending history by category. 

First, look at the most significant and most necessary spending areas such as mortgage/rent, utilities, transport, food, and childcare. Then define a category for the miscellaneous extra expense like school expenses—equipment, gifts, clothing and holidays.

Take a critical look and consider this your single parent budget calculator. Ask yourself some questions. Does your spending reflect your priorities? If you need to aim to adjust your monthly spending in each area. Set tighter spending goals for yourself and look for expenses you can cut completely (such as an unused gym membership). 

 Check the benefits you are eligible for:

A single mother budget can be boosted significantly with help from the UK benefit programmes. This can help make ends meet and provide an opportunity to save money for an emergency. 

Depending on your circumstances, you may be eligible for: 

▪            Universal Credit

▪            Child Benefit

▪            Healthy Start vouchers

▪            NHS Low Income Scheme

▪            Council Tax Reduction

▪            Widowed Parent's Allowance

▪            Bereavement support payment

▪            Income support

▪            Jobseeker’s allowance (JSA)

▪            Free school meals

▪            Childcare costs & tax credits

Have an emergency fund

If you raise a family with one income, it can be hard enough to make ends meet nowadays. But it’s always a good idea to prepare for more challenging times in the future.

Building an emergency fund is one of the best things you can do for yourself. It takes time, so be patient; every pound you put aside today will be a great relief if something unexpected happens in the future, like redundancy or an emergency home repair. 

Ideally, your emergency fund will max out at three months of necessary expenses after you can figure out your ideal amount with your accountant because single mums need an accountant!  

Prepare for the future now

‍Alongside building an emergency fund, it’s also an idea to take steps for your financial future, such as retirement or buying a house. For yourself, if you don’t have one already, consider opening and regularly contributing to a Self-invested personal pension (SIPPs). These hold investments until you retire, at which point you can start to draw an income from the account. 

And if you’d like to give your child a financial boost when they come of age, you can open a Junior ISA or Junior SIPP. 

You or any adult can put money into this investment savings fund with the Junior ISA. The value of the investments in the ISA can grow and earn interest. Your child can access funds from the account tax-free when they turn 18. 

And a Junior SIPP is a tax-free way to build a retirement fund for your child. Like the ISA, control of the pension passes on to your child at age 18. Additionally, in a worst-case scenario, a best practice is to have life insurance or a critical illness insurance policy for your child's or children's financial security. 

Pay off debt and stay on top of your bills

The biggest financial tip for single moms is to pay off credit cards and stay as far away from their overdrafts as possible. High interest can make a significant dent in your cash flow when debt piles up. It can be tough to escape the debt, and your credit score may take a nosedive if you aren’t careful.

If you’re trying to stay on top of multiple high-interest credit card payments, you may want to consider a 0% interest balance transfer card. Ask your local bank. 

Put your bills on autopay

If you know your budget can handle it, try putting monthly bills on autopay. This ensures you don’t miss a payment and incur late fees. This also saves you time. Instead of sitting at your laptop paying the bills one by one each month. Set up autopay and have more time to spend with your kids!

This helped me feel assured that everything was set up accordingly and paid on time. A great relief, I must say. 

Utilise your support system to make childcare easier

It takes a village to raise a child!  Whether you’re a single mom or not, most people realise that childcare usually involves many different folks pitching in. You might be surprised by how many other parents want to team up with you to tackle childcare. Just ask around! I’m lucky because my mom and my sister are both in my town, and neither of them works full time, my mom has my son after school, and my sister takes care of the playdates. It’s the only way we can manage our jobs.

Some moms worry that family members will feel taken advantage of but older family members looking out for the youngest kids is a tradition as old as time. Many of us grew up spending a lot of time with our grandparents, so try to put your worries aside as hard as it may be. Have an honest conversation with your family members and see if they are willing to help you out. You will probably be surprised at how helpful they take on some babysitting time, even if it is just an afternoon here and there. (Find your tribe, as I like to say)