Single Parenting: Taking Care of Your Finances

Written by Jana Angeles

The breakdown of a marriage or a relationship can affect you in so many ways. Whether you had an amicable separation or you were not able to resolve the existing problems you already had, the changes that happen after a separation will impact you greatly when it comes to your finances.

With the changes of being a single parent, there are sacrifices you need to make to be able to provide for your children and this means you need to take care of your finances and get them in order. In this article, we explore some tips which could help you prepare for the worst financial situation you may face as a single parent:

Draw up a detailed budget on a spreadsheet

It’s important to know where your finances are going and the best way to do this is to put all your fixed expenses on a spreadsheet. With things changing financially, you’ll need to see what things you can live without. You may have had the luxury of paying for Foxtel, Spotify and Netflix but now that you’re separated and have bills to pay for, you’ll need all the extra money you can get to support you and your family.

Identify your main expenses

Your main expenses include housing, education, savings, utilities and food. You may have other things to pay for such as a fixed car repayment and health insurance. It’s important that you identify where most of your money is going towards because this will help you cut back on your expenses and have a stricter budget.

You can also shop around for utilities and see if you can save money elsewhere. Depending on the company’s policy and how long you have stayed on as a customer, they may offer you a discount in return for your loyalty. It can be overwhelming looking at your overall spending and it may not be ideal to have a lower budget but you just have to remind yourself that this isn’t forever. You’ll eventually be able to find ways to earn more money and support yourself and your children on a single income.

Look for a side hustle

Believe it or not, holding down just one full-time job may not be enough for other people. You may want to utilise the skills you’ve never tried before or have had experience in a field before you got your foot in the door in the career of your dreams. Doing odd jobs here and there can be good for you while you find your feet when you have recently separated from your partner. You can pitch articles to paying publications, work a retail job during the weekends or find casual work which can be done remotely outside of business hours. Having a side hustle can be a

good way for you to earn extra money using the existing skills you may already have. It will give you some extra cushion for now when paying for your bills and provide an opportunity to top up your savings account in the meantime.

See what entitlements you’re eligible for

Single parents are entitled to some payments provided by the Government. This could help assist in paying for childcare, housing, etc. Make sure you have a look through Centrelink and see what you are eligible for. This may provide relief for you financially if you do not have a high income and don’t have time for a side hustle. It helps take the pressure off for a while, especially if you have had to relocate since you and your partner have separated and you’ve needed to purchase a couple of new things!

Consider extra insurance coverage

It doesn’t hurt to pay extra for peace of mind and that’s usually what insurance does. Being a single parent is tough and when you have children, your finances may not be as manageable as they used to be. You may not be in the position of your dreams, you may be a full-time freelancer living paycheck to paycheck or you’re still studying at university while trying to hold a part-time job. With this in mind, it’s important to consider getting extra insurance coverage like income protection. This could help you if you’ve become injured or too ill to work. Not only will this benefit you but it will also help you out if you have bills to pay for or need to support your family when you really need it.

Getting your finances in order when you’re a single parent can be tough at first, but in time you will get used to it. You may not have the luxury in paying for the things you had before you and your partner’s separation but you have to remember that it takes time to rebuild your savings and properly evaluate your overall spending. Your main priority is to look after your family and ensure that your children are getting what they need and still feel supported and cared for by you.