It’s challenging enough for couples to raise a family and manage finances, and it becomes even more difficult for single parents. As a single mum or dad, you need to do everything on your own, particularly managing your budget to ensure that your child’s needs are well taken care of. If you’re looking for tips on financial planning, here are some things that you may want to consider:
Know all of your entitlements
Ask Centrelink about the entitlements designed for single parents. If you are caring for at least one child who is below eight years old, you will get a parenting payment. Young parents (below 19 years old) will also receive additional assistance.
Likewise, an increase to the Family Tax Benefit Part A was introduced by Centrelink to aid single parents in handling the costs of raising teenagers. You need all the help that you can get so make sure to be familiar with parenting payment and other forms of assistance for single parents.
Create a comprehensive budget
Know how much money comes in and where it goes. Be realistic so you can stick to your budget. List down the amount of money needed to cover expenses such as mortgage, loan repayments, food, school fees, child care, clothes, insurance, and utility bills.
Consider work and study options
As a single mum or dad, you need to earn enough money to provide for you and your child’s needs, but it can be a challenge. You can look for courses to learn skills that will make you qualified for a better-paying job.
Save and invest
Having an emergency fund is essential, more so if you’re a single parent. While saving and investing may be difficult, try to save and invest even a small amount, then do it regularly. Eventually, you’ll have savings that you can use for an unexpected expense or to make a major purchase.
Take care of yourself
As they always say, “you can’t pour from an empty cup.” You cannot earn money and take care of your child if you are always sick. Being a single parent can also be lonely as the loss of a partner to share decision-making and responsibilities with can take a toll on your physical and emotional health. But you can cope with the situation by staying fit and healthy. Have a positive outlook in life so you can perform better at work and be healthy emotionally.
Got other financial planning tips for single parents? Share your ideas in the comments section.