Every single mother in SA needs a financial safety net

Single motherhood is becoming the norm in South Africa, with 42.3% of households headed by women. But with the cost of raising a child hitting R1.6 million and women's unemployment at 35.9%, financial planning has become a matter of survival.

Gerda van der Linde, Verso Wealth MD, says she and the female financial planners in her team have specifically seen that more women are finding themselves solely responsible for raising a child. She explains that this could happen for a variety of reasons, including divorce, the death or absence of a partner, or having to step into this role as the oldest child.

“Becoming a single mother can happen to anyone,” says Van der Linde. “This shift in family dynamics is not just a social issue - it's an economic reality with profound implications,” she adds.

Statistics South Africa's latest mid-year population estimates note that just over half of all South Africans are women at around 32.2 million people, making up around half of the population in the core adult age range, at 49.8%, according to Personal Finance calculations.

The 15–49 age range is considered by Statistics South Africa, the Department of Health, and the Demographic and Health Survey to be key child-bearing ages.

Using this framework, if every woman in that age group were to have a child, roughly seven million women would be heading households, based on Statistics South Africa's Volume XI Gender Series' figure of 42.3% of households being led by women.

If this isn't a stark enough picture of the weight women bear in South Africa, Children Count, a permanent project of the Children's Institute at UCT, tells us that 44% of all children live with their mothers but not with their fathers. Only 4% of children live in households where their fathers are present and their mothers are absent.

This, it says, doesn't necessarily mean that these children only have one parent. “Parental absence does not necessarily mean parental abandonment. Many parents continue to support and see their children regularly even if they have to live elsewhere,” says the website.

Van der Linde points out that “single motherhood is no longer the exception – it's becoming the norm”. This, she says, comes in the context of women facing unique economic challenges.

The unemployment rate among women is 35.9% as of the second quarter of this year, while the cost of raising a child can be as much as R1.6 million through to 18 years of age, Old Mutual data shows. Discovery puts this figure at around R1.68 million for the average middle-income family.

“With limited access to reliable child maintenance and fewer job opportunities, many single mothers are left to shoulder this massive responsibility alone,” Van der Linde points out.

Regardless of how someone became a single mother, Van der Linde says this process can be daunting without a proper plan. “Without preparation, single mothers are often left vulnerable to emergencies, illness, or worse,” she says.

Among other aspects that Van der Linde advocates is setting a realistic budget by tracking your expenses over the last three months to understand where your money goes. Here, she notes, it's important to prioritise essentials like food, shelter, education, and transport.

Something else that could be overlooked is having a valid will, as this means that you won't be able to choose who cares for your child and how your assets are distributed, says Van der Linde.

Van der Linda notes that, without one, any money that is distributed to a minor child is held in the Guardians Fund, which makes it harder for those who now must raise children to fund that process because accessing any cash is a slow and restricted process.

David Hurford, CEO of Fairheads Benefit Services, advises single mothers to use an umbrella trust to secure their children's financial future. He says this allows support for multiple siblings under one structure, with trustees managing monthly stipends and payments for essentials like school fees and medical costs. Setting it up before death also avoids delays in estate administration.

Life risk insurance, medical cover, and an emergency fund are all musts, says Van der Linde. She explains that a proper financial plan including the required cover help protect your family from uncertainty by providing a financial umbrella.

Van der Linde adds that, if relevant, it's important to ensure that child support is legally documented and enforceable while also keeping written records of all communication and payments.

“Single motherhood is one of the toughest, yet most powerful roles a woman can step into. While the financial and emotional demands are high, there is strength in being informed and proactive,” says Van der Linde.

Here are five practical financial tips for single moms in South Africa:

1. Set up an emergency fund

Try to save at least three to six months' worth of essential expenses.

     2.  Create a realistic monthly budget

Track your income and expenses carefully, giving priority to essentials.

    3.   Maximise government and tax benefits

Single moms may qualify for the child support grant or other social benefits.

    4.  Plan for long-term security

Take out life cover and ensure your beneficiaries are listed correctly.

   5.  Use an umbrella trust for your children

If you die, trustees handle the money and make monthly payments for living, school, and medical costs.

PERSONAL FINANCE