The single mother’s guide to financial planning

AS sole breadwinners responsible for the welfare of minor children, single mothers face a uniquely challenging financial landscape. Without a partner’s income as a safety net, and with the emotional strain of shouldering the family’s finances alone, the pressure can be immense.

- SHERRY TAPFUMA

Yet, in our experience, single mothers often display a remarkable resilience and resourcefulness in managing their money. In fact, research shows that women tend to be better investors, often seeking professional advice, sticking to their plans, and staying calm during market volatility. With these advantages in mind, there are some practical steps single mothers can take to strengthen their financial positions.

Budgeting and money management:

Running a single-income household demands disciplined budgeting. Managing income and expenses through one financial institution can simplify administration, using linked accounts such as a transactional account, credit card, and savings account for emergency funds. Multiple accounts across different institutions can make tracking debit orders, credit card due dates, and interest-free periods unnecessarily complex.

A strong credit record is essential, as a single parent's ability to secure finance rests solely on her own credit profile. As such, responsible credit card management is key, especially since payment history accounts for 35% of one's overall credit score.

Insurance protection:

Two forms of long-term cover are particularly important for single