Life can be like spinning plates at the best of times and as a single parent or guardian, it can feel even tougher to juggle it all. When it comes to finances, it’s okay to feel like your financial wellbeing is a million miles away when you have so much on your plate, but being here and reading this blog is a step in the right direction.  

There are lots of things you can do if you’re feeling overwhelmed by your finances. It’s also important to remember never to feel ashamed for reaching out for financial help —it can take a village, after all. Creating — and sticking with — a budget as a single parent is a simple, straightforward and powerful way of tackling your money situation head on. 

In this blog, we’ll look at budget tips for single parents and guardians. Hopefully it’ll help you to build a budget, get your spending under control, check for any support you might be entitled to, save and plan for the future, and ultimately look after your family and yourself.

Budgeting for single mums, dads and guardians

When trying to organise your finances, tailoring your budget for single mums, dads and guardians can be a good place to start. To get a proper view of your finances, create a single parent budget worksheet to use as a template. This is an easy way to help you visualise your income and expenses in one place and pull them into line. 

Working out a monthly budget for single mums, dads and guardians is easier than you might think, and it gives you a helpful overview of your finances. You can check the affordability of your current lifestyle and where you might be able to make positive changes to take control of your finances. Let’s look at a budget example:

First, work out your income. If you’re a single parent, this may mean that you have one income, but add any money that you have coming into your account each month. Remember to take off any tax that you have to pay so that you have a true number to play with. Write this number down in your “income” column.

Second, work out your expenses. This will include anything that you have coming out of your account each month and can be categorised into two extra columns on your budget: “essential” and “non-essential” expenses. Essential means anything you can’t live without, like rent, mortgages and bills. Non-essential is made up of treats and entertainment for you and your kid(s).

Now you can start to build your budget. There are different budgeting rules that you can use, but let’s focus on the simple 50/20/30 budget. This one breaks down your income into three percentage chunks: 50% for your essential outgoings, 20% is for your financial goals, leaving 30% for your non-essential spending.

Using this budget, you can build an affordable and sustainable way of balancing your finances. And because it works in percentages, it largely makes sense for whatever your income might be, even if it changes month-to-month. With your outgoings for a typical month laid out in front of you and a basic budget to help you manage them, it’s time to look at how you might be able to strengthen your finances.

Money tips for single parents

If you’re a single parent, you might know how important having a handle on your money can be especially when you’re juggling a home, children, bills, rent, and maybe even some debt.  If you’re feeling overwhelmed at all, that’s okay — take a deep breath and let’s break it down bit-by-bit. It’s a good idea to start with the outgoings from your budget, separated into the essential and non-essential categories.

 How are your essential outgoings looking? With the rise in cost of living, you might feel like your money doesn’t stretch as far for things like electricity, groceries and water but try and do what you can to bring those costs down.  It’s not always easy, but using price comparison sites and by contacting your energy providers, it can be possible to get better rates for your bills. Making some calls you don’t really want to make could pay off in the long run. Like we said with the budget split earlier, keeping it under 50% is ideal but at a pinch, 70% can work as well. Just remember to adjust your non-essential outgoings accordingly. 

It might be easier to make savings with your non-essential expenses. It can be hard to let some nice things in life go — especially if they’re for your kids as well— but a little cutback here and there could go a long way. How many takeaways could be replaced with a home-cooked meal?  Are you or your family watching all of your streaming services?

There are some simple things that you can do to help bring down your regular costs like:

• Hunting for vouchers online for days and nights out
• Turning off your lights when you leave the room
• Layering up in the house to reduce your heater usage
• Showering instead of running a bath
• Dry your clothes on a rack instead of a tumble dryer
• Make packed lunches

Remember, reducing your expenses doesn’t have to mean you can’t have fun with your kids. Here are some lower-cost activities which are fun and fulfilling:

• Borrow films and books from the library
• Do some baking together
• Go to the park
• Do some arts and crafts at home
• Go to a free museum

Check for available support

If you’re a new or single parent struggling with your finances, you may be entitled to additional support and benefits. Check websites like entitledto and Turn2us to find out if you might be able to make use of support like Child Benefit, Universal Credit, Council Tax Reduction, and Healthy Start Vouchers.

Start saving

If you’ve created a budget and managed to find 20% of your income which can be used to improve your financial situation, it might be time to start saving. Savings can give you a financial foundation to build from with more confidence but it’s best to clear any substantial debts before you start saving if you can.

To begin with, you might like to start saving towards an emergency fund to help give you and your family some financial stability and peace of mind.  An emergency fund is a savings pot which can cover at least three months of your income in case life throws you any curveballs, like a redundancy or an unexpected medical procedure.

Joining Loqbox can be a solid way to begin saving for your family and potentially improve your credit score at the same time. Set a savings goal in a Loqbox Save account and as you make monthly payments, we’ll report it to the credit reference agencies (CRAs) which can boost your score and help you get approved for (and save on) loans. 

Improvements to your credit score are not guaranteed. 

Another option is to open a high interest savings account for your children. Even if you can afford to add just a little into the pot, you might be surprised at how it can grow over the years. This money could eventually go towards their education, big life moments or even just a nice birthday surprise when they’re older. 

Earn extra income

‍You may already have enough on your plate if you’re a single parent or guardian, but if you are able to find extra time in your schedule, perhaps you can use it to boost your income. Hear us out here — you don’t always have to trade your time for money. There are options for you to monetise your skills in different ways.

Do you have a talent, like playing a musical instrument, that other people might be willing to pay to learn? Can you make a passive income with training videos, rather than spending time on one-to-one training? You might be surprised by the things you already have which could make you more money.

If you have a spare room in your house and you feel comfortable with the idea, perhaps you could rent it out to a lodger. List all of your old clothes and unused items on ecommerce sites like eBay and Vinted, or trade in your old devices. You can even earn money filling in surveys or looking after other peoples’ furry friends!

Take care of yourself

Finally, it’s really important that you take care of yourself while you take care of your finances. Lots of us struggle with money, you shouldn’t blame yourself if money is tight, especially if you’re looking after a child on your own. If you can, try and find people who can give you emotional support. 

Try not to panic and remember you’re not alone. Building your inner-strength, by reaching out for help when you need it and surrounding yourself with supportive friends and family, will help you to take control of your finances and work towards financial wellbeing.