Single mums plan ‘a life less ordinary’ for children

Almost eight in ten (77%) single mums who are unable to gain credit are more concerned with saving money for their children’s future than getting out of debt themselves (28%) according to new research from BrightHouse Stores.

With credit card companies turning down 18,000 applications a day and 3.4 million adults having been rejected for credit in the past six months, a life without credit is becoming a very real possibility for many Brits. The findings from BrightHouse Stores reveal that it is mums with no credit who have had to evaluate their financial priorities carefully this year.

Previous research from the community retailer revealed that almost three in five single mums have gone back to managing family finances on a week-by-week basis (58%) and 74 per cent of mums who have no credit, draw out their weekly spending allowance in cash at the start of each week, in order to cope with budgeting.

BrightHouse Stores asked a GB representative sample of 500 single mums what their financial priorities were for 2008 and the results portray a nation of financially proactive mums.

Selfless mums with no access to credit want a better start in life for their kids and are most concerned with putting money aside for their kids to go on a school trip (83%) and saving for their children’s future (77%).

Over half (59%) of single mums with credit issues are foregoing the chance to better their own future through evening classes and further education in order to save pennies for their children’s future.

More than half (52%) of mums with credit problems are actively helping their kids become more financially literate to prevent them from experiencing the same financial difficulties.

Previous research from BrightHouse stores has revealed that 18 per cent more single mums actively teach their children about the value of money than dual parent families (67%).

Conversely, just over seven in ten (72%) single parents with credit cited getting out of debt as their top priority for 2008.

Hamish Paton, Business Development Director, BrightHouse Stores commented: “It’s encouraging that the financial priority of so many single mums is to save money for their children’s future, but many are still struggling with the cost of living, particularly those with no access to credit.

“Living without credit can be very limiting, which is why BrightHouse is helping its loyal customers to improve their credit history.

“As a community retailer, investing in the communities in which we do business, we pride ourselves on being able to help Brits to make their home better on a budget, regardless of their previous credit history.”