Financial Planning for Single Mothers

Review your current financial planning as a single mother 

Before you can even make a start on changes, it’s vital to understand your starting point.

Create a Budget

Use a budgeting tool like MoneyHelper’s Budget Planner to record your:

• Monthly income (salary, benefits, child maintenance)

• Essential outgoings (rent/mortgage, utilities, food, transport)

• Variable costs (clothing, subscriptions, takeaways)

• Debts and repayments

Understanding cash flow is the first step toward regaining financial control.

Maximise income and benefits

The next step is to check what you are entitled to. You may be eligible for several types of support. Even if you’re working full-time, don’t assume you’re not entitled.

Key benefits and support include:

• Universal Credit: Can help with living costs and childcare.

• Child Benefit: Available for all children; tax implications apply if you earn over £50,000.

• Council Tax Reduction: Single adults qualify for a 25% discount, and further reductions may apply.

• Free School Meals: Depending on your income level.

• Healthy Start Vouchers: For mothers with children under four or who are pregnant.

Check what you’re eligible for using the Turn2Us Benefits Calculator.

Child Maintenance 

If the child’s other parent is not providing financial support, you can arrange child maintenance directly or through the Child Maintenance Service.

Build an emergency fund

Life with children is full of surprises! We all have things that happen, for example your boiler breaks down or your car needs repairing. Children grow so fast and so school shoes are suddenly too small, or nursery fees rise unexpectedly. An emergency fund provides peace of mind and reduces reliance on credit in a crisis.

How to Start

• Set a realistic goal: Aim for £500–£1,000 to begin with as an emergency fund and this might take some time to accrue.

• Start small, even £10 a week into a separate savings account adds up.

• Use standing orders to “pay yourself first” each month.

Look for savings accounts with easy access and competitive interest rates on sites like MoneySavingExpert.

Manage debt strategically

Debt can feel overwhelming when you’re managing everything alone, but it’s manageable with the right plan.

Step-by-Step Tips:

• List all debts: Include interest rates and minimum payments.

• Prioritise high-interest debt: Credit cards and payday loans should come first.

• Speak to creditors early: If you’re struggling, many will work with you.

• Consider a debt management plan: Through charities like StepChange, which offer free and confidential advice.

Avoid high-cost credit options where possible, short-term solutions can cause long-term harm.

Save – small amounts add up! 

You may not feel able to save much, but even small, consistent steps lead to meaningful results over time. Set some financial goals.

Think about what you want to achieve in 1, 5, and 10 years:

• A holiday with your child

• A house deposit

• Retirement planning

Use Government Incentives

• Help to Save: If you’re on Universal Credit or Working Tax Credit, you can save up to £50/month and get a 50% bonus from the government after two and four years.

• Junior ISAs: Start saving for your child’s future in a tax-efficient way.

• Lifetime ISAs: For those under 40, save up to £4,000/year with a 25% bonus toward a home or retirement.

Plan for the unexpected

Consider life insurance, critical illness cover and income protection.

If your child relies solely on your income, life insurance is essential. A basic term life insurance policy can cost as little as £10–£20/month and offers significant security.

Make a will

Without a will, your assets might not go where you want them to. Use a solicitor or reputable online service to set one up and appoint guardianship.

Invest in yourself

Can you upskill to increase earning potential. Education and training can lead to better job opportunities or higher pay.

Look into:

• Free adult learning courses through your local council

• Online courses on sites like FutureLearn or Open University

• Flexible degrees or part-time apprenticeships

Also, consider speaking to a career coach or using services like National Careers Service.

Seek support and build your network

You don’t have to go it alone. There are supportive communities and organisations designed to help women thrive financially and emotionally.

Useful Resources:

• Gingerbread: UK charity for single parents with advice, forums, and local groups.

• Local women’s networking events if you run a business or financial wellbeing workshops.

You are your child’s greatest investment 

Taking control of your finances doesn’t mean having it all figured out. It means taking one step, then another, toward greater security, independence, and opportunity for both you and your child. You don’t have to be perfect. You just have to begin.