How South Africa’s single mothers must secure their financial future

Sylvia Walker, Market Development Manager at Old Mutual.

The majority (53%) of working mothers in South Africa are single, according to the Old Mutual Savings and Investment Monitor, released in July this year. What’s more, it’s estimated that around half of single mothers receive no financial support, says Syl

This makes them financially very vulnerable, and the burden is increased by social pressures and the perceived need to “keep up with the Motsepes”.

“Most mothers want to give their children the best they possibly can and live an acceptable lifestyle, but they need to cut their coat according to their cloth,” says Walker, herself a single mother of two. “The biggest consideration as a single mother is not to fall into a debt trap. When people go into debt to fund a specific lifestyle, the situation can spiral out of control.”

Save, save, save!

With escalating living expenses, saving may not seem like a feasible option to most single parents. The answer is to “pay yourself first”. If possible, arrange for a deduction directly from your salary, so that your savings are separate and not factored into your household budget. These savings should be for a rainy day (emergency money) as well as for longer-term needs such as tertiary studies for your children.

Think about your future

“The rising cost of education cannot be avoided,” says Walker. “If you are battling to make ends meet, it is important to be open with your child’s school. Many schools will make allowances for learners whose parents are under financial strain. Rather put your pride in your pocket and apply for financial relief than go into debt to pay school fees at the full rate.”

Have a financial plan and stick to it

Walker adds that single parents face an additional challenge. There is no spouse or partner to fall back o¬n in times of a financial crisis, so cover for severe illness, death and disability becomes even more critical, as their income and their children’s future need to be ensured, no matter what happens.

Women o¬n average also live five to seven years longer than men, which means saving for retirement is also a pressing need.

Look at the positives

No less than 41% of single mothers who responded to the Old Mutual Savings and Investment Monitor form part of the sandwich generation – financially supporting both their children and parents.

For many single mothers who need childcare support while they are at work, the solution is to have their ageing parents assist them.

“Single mothers often find this type of arrangement worthwhile,” says Walker. “Why pay a stranger to care for your child when you can pay your parents, and they are willing and available? That way you can trust the caregivers and support your parents at the same time.”

So where to start?

Though single mothers carry greater responsibilities o¬n their shoulders, the message rings true for everyone: consult a financial adviser to get o¬n the right track to achieving your financial goals throughout your various life stages.

“It’s up to each and every woman to take control of her financial future,” sums up Walker. “There is no magic wand or formula, just discipline and proper financial planning.”