“Here are top tips for single moms to help them take control of their money.” Photo: Robyn Edwards.
At least 2.8 million people lost their jobs in South Africa during the hard Covid-19 lockdown, the National Income Dynamics Coronavirus Rapid Mobile survey revealed.
And with the pandemic being an ongoing uncertainty, there’s no telling when many people will bounce back from financial setbacks.
But there are ways to cope, says Robyn Edwards, a single parent and marketing manager at Metropolitan.
Edwards spoke to News24 about ways that single parents can take back control of their money.
This is one article in a series on the impact the Covid-19 pandemic has had on ordinary South African families. Find the full series here: Behind the Mask
Read: Local couples reveal how they share their finances
Make lifestyle changes
“My advice would be to look at where you can make lifestyle changes that will help you to recover,” says Edwards.
She recommends asking yourself things like:
- What are the things I can do without?
- Where are the areas where I can save?
- What are the things I can do to stretch my rand? Bulk shopping? Looking for deals and specials?
“Once you have identified these areas where you can cut back, put your plan into place. Yes, things will be tight for a while and you will need to be disciplined, but it will be worth it when you are back on your feet and in control of your finances,” she told News24.
Edwards believes that once parents start with precision budgeting, as explained above, it will be easier for them to see what they can contribute towards a savings plan.
During the lockdown, she managed to save by taking the money that she could have used to buy extra new clothes for herself and her son, and channelling it towards her savings account for rainy days.
“I was very fortunate that I didn’t lose my income, but that is never a guarantee with our current economy, and so my savings goals shifted to making sure that I have a contingency fund should I lose my income,” says Edwards.
Must read: ‘Life is more than settling debt’: How to teach your kids the value of money and saving
Savings plans
“It all starts with a plan. As a single mom with a lot on your plate, there is probably not much anyone can teach you about multi-tasking, ball-juggling, or planning with military precision,” Edwards says.
“All you need to do is to apply that same focus to your finances”.
Edwards says there are several policies and savings vehicles available with smaller monthly contribution requirements, which will allow you to securely …….