5 money tips for single parents
By Boring Money
4 Oct, 2023
As a single parent, every job is your job. Hooray! But when it comes to finance, where do you start? How do you make a budget, reduce what you spend and get smart with family fun? We're sure you've thought about it already, but it can be helpful to address the basics to make sure you're financially secure.
As it can be easy to get overwhelmed by the extra responsibilities when you're parenting on your own, especially at the beginning, we've listed out some ways to take off some of the strain. From starting - and sticking to! - a budget to reinventing your family holiday, here are 5 top tips for single parents to manage their money better.
1. Start with a budget you can stick to
The key starting point is to get a snapshot of your finances and to understand whether your life is affordable in its current format. You've got to know what's in your bank account, what the regular payments are, what the cost of your mortgage is, and the best way to get on top of that. So sit down and map out a budget.
Once you've got an idea of what's coming in and what's going out, it's about giving some serious thought and potential action to adjusting that situation. So quite simply, if you're in a situation where your outgoings exceed what's coming in, you've either got to increase what's coming in or reduce what's going out. Otherwise you're just building up financial pressure for yourself and perhaps looking at taking on debt that you probably can't afford.
However, just 'start a budget' can be easier said than done! For some pointers on how to do it, some handy apps that can help you and - perhaps more importantly - how to actually stick to your budget, check out our article 'Top 3 ways to start budgeting' by clicking the link below.
2. Check which benefits you may be entitled to
Now that you've got a handle on your basic income and outgoings, it’s time to see what benefits you may be entitled to that could give you a little extra boost. For example, you could be entitled to Universal Credit or some of the other benefits that can provide some much-needed extra cash. If you're someone who loathes the idea, try to see it as a stepping stone to tide you over until you stop fire-fighting and can think about what comes next.
If you’re in a divorce situation, a good divorce lawyer should be able to give you advice about the different kinds of benefits and advice centres that you can talk to for information about what you're entitled to. A financial adviser can also do this. However, if you don't have a lawyer or adviser to hand, there are plenty of calculators you can use to get an estimate of the benefits you may be entitled to depending on your circumstances.
Below is a list of websites which can help you to do this:
You can also check with your local benefits adviser to help you determine what you could get. Simply enter your postcode and find a list of independent advice organisations near you who will usually be able to offer free advice and support.
3. Sort out your will and income insurance
Though it can be uncomfortable to talk about, we have to think about death and bereavement in order to be prepared if the worst should happen. After all, though we tend not to think about the really boring financial products - like Life Insurance, Critical Illness cover or writing a will - they can make a world of difference to your position (and your family's) if anything happens to you. However, these back-up plans can be hard to get your head around, especially if it's the first time you're really thinking about them.
Why income insurance is important for single parents
Health-related income insurance can be a worthwhile route if you're a single parent as it can help to protect your income if you're unable to work due to illness or injury. This is especially relevant if you're the sole provider for your children. With over 2.5 million people in the UK off work due to long-term sickness as at August 2023, according to the Office for National Statistics (ONS), it's well worth considering in case it happens to you.
Why writing a will is important for single parents
As well as considering getting insurance to cover yourself and make sure you can keep food on the table, it's important for single parents to write a will - or revise their existing one if they've recently gotten divorced. If you die without a will, the rules of 'intestacy' will be applied to your estate, meaning your money, property or possessions could be given to the wrong people! Crucially as well, if you had a will written up while you were married or in a civil partnership, you might want to change this to ensure your ex-partner is omitted now that you're no longer together.
4. Brainstorm extra ways to make money
If you're a single parent - particularly if this is a new development - you may need to consider some ways to generate additional income to support your children. With the cost of living exceptionally high, more and more households are having to take extra measures to make ends meet (or just get a much-needed boost).
Here are some ideas for ways you could top up your finances:
Get a lodger/rent out a spare room
Sell unused items on eBay, Vinted or Depop
Trade in old mobile phones or devices for cash
Try pet-sitting if you're able to work from home
Take surveys and earn money
For those who opt to get a lodger, make sure to do so through the government's Rent A Room Scheme. This allows you to earn up to £7,500 a year without incurring any tax - though bear in mind that this is halved if the income you receive is shared with any other people.
Or, if you can spare a little bit of time, why not join the Boring Money Research Panel? You can participate in surveys and interviews about investment providers to help us help them do better and earn some cash in the process!
5. Find family activities that don’t break the bank
You might have found that you were locked into certain things as a couple that you definitely aren't locked into as a single parent. Perhaps it's time to think of different family activities, for example, to spend time together - or keep the kids busy! Different destinations, different experiences, that can maybe save yourself some money in the process.
Here's a list of ideas for cheap and free family day-outs:
Movies For Juniors - £2.50 child and adult cinema tickets for selected Cineworld screenings
Zoo vouchers - Reduced price zoo and wildlife park tickets around the UK
Free museums - Check out free museums in England, Scotland, Wales and Northern Ireland
If you'd rather stay at home, there are also plenty of activities you can do with the kids that don't break the bank. Why not try baking cupcakes, making homemade playdough, planting seeds or flowers, building a bird feeder, playing board games, doing a puzzle, going for a picnic or tie-dying t-shirts? LoveToKnow has a great list of ideas for family fun on a budget.
...And be kind to yourself!
As a single parent, I was busy proving to everybody that I could do everything and still deliver to a certain standard. But across a couple of girlfriends we jokingly had the phrase: lower your standard. And one of us took it one step further: lower your standard, everyone’s still breathing! I think that's to do with taking some pressure off ourselves, because with pressure and anxiety comes illness and we don't want to go down because we want to be our best selves for our children.
Finally, be careful about spreading yourself too thin and spinning too many plates. Being a single parent is hard and it can feel like you have the weight of the world - and your kids' - on your shoulders. That's why it's important to take the pressure off sometimes. After all, it's no good for the children if you get run-down and sick! Remember to pencil in time for yourself. Get a family member or friend to look after the kids for one evening per week, for example, or enrol them in after-school activities that spare you a few hours in the evening. It'll make all the difference if you can remain well-rested and relatively sane if the going gets tough.
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