As a single parent, managing your finances can be tough and stressful. South Africa has too many single parents struggling to make ends meet due to socio-economic challenges such as high unemployment and unstable local currency rate. This article offers top tips on how to best manage your finances as a single parent and survive any financial obstacles ahead.
Tip 1 – Take advantage of government help
Various forms of assistance are available from the Government to needy citizens in South Africa, so if you are a low-income earner, take advantage of them where you can. For example, the "Child Support Grant" from the South African Social Security Agency (SASSA) is a grant for single and low-income families that are responsible for looking after a child below the age of 18. If you want to apply for the Child Support Grant, click here. Other forms of assistance available to single parents may include the "Foster Child Grant" and the “Care Dependency Grant”.
Tip 2 – Set financial priorities
Setting financial priorities is about effective budgeting. Prioritise important expenses such as rent or mortgage payments, essential household bills, food, and school or university fees. Once those essential items are taken care of, you can try to allocate a small amount of money for household luxuries or entertainment. A good budgeting tool to help you with your finances is the South African “My Financial Life” initiative, click here for more information.
Tip 3 – Make contingency savings
As a single parent, a great way to secure your future is to ensure you have some sort of secure family and financial contingency plan. This means planning in advance and having a secure savings account or a financial plan such as insurance, pension funds or investments. It is also important to make sure your child’s future is secure by investing in their education. This may include saving toward university fees, school related expenses and setting up a trust fund that can be accessed in the future.
Tip 4 – Be wise with credit
It is always important to be wise with credit. Too many single parents find themselves in a financial spiral due to uncontrolled credit card debt. It is important to establish a good credit rating, but only use credit when you can pay the full amount back with ease. A great tip that can help you with credit is to open a credit account with Credit Revive’s free Credit Report - which offers individuals the opportunity to track their credit score and gives you a full overview of your financial situation.
Tip 5 – Use technology to assist with budgeting
In today’s modern world, it’s important to use technology to budget wisely. There are many apps and budgeting tools that are useful for single parents to better control their finances. For example South Africa has apps like Budget Bank South Africa and 22seven, which can help you track and manage money. Investment apps such as Easy Equities and ETF World can also show you the best opportunities to invest your hard-earned money.
Tip 6 – Have reliable transport
As a single parent, having reliable transport can help take away some of the financial stress and free up your time. Public transport can be unpredictable and costly, and not having your own vehicle can mean additional expenses such as taxis or hiring a car. But when you finally have the cash to think about it, buying or leasing a vehicle can be a great benefit.
Alternatively, if you are an on-demand driver, you can always rent a truck or a van for a short-term rental. This is where QikTruck comes in. With QikTruck you can rent a truck with a driver in minutes, and they offer reliable and efficient truck hire across South Africa. Their service also comes with a variety of benefits such as flexibility and competitive prices, making them the perfect solution for single parents needing reliable transport.
Above all, it is important to have a proactive attitude when it comes to managing your finances as a single parent. The tips mentioned here offer a great starting point to keeping your budget on the right track. With careful budgeting and the use of reliable services like QikTruck along the way, you can make sure your family is taken care of for years to come.