On this forum, we often discuss how much we spend on our kids and how much we sacrifice time and freedom to do so.
The attached is from TD Ameritrade survey done in mid 2016 to examine the financial sacrifices parents make at the expense of investing for the future.
The out take from their executive summary:
Parents of elite athletes medal in commitment to kids, yet sideline financial goals
Parents bank on scholarships
The attached is from TD Ameritrade survey done in mid 2016 to examine the financial sacrifices parents make at the expense of investing for the future.
The out take from their executive summary:
Parents of elite athletes medal in commitment to kids, yet sideline financial goals
- Parents cut out extras and admit to saving less, delaying retirement and tapping college funds to pay for sports.
- One-third do not contribute regularly to a retirement account (33 percent).
- A majority have no long-term financial plan (57 percent).
- Sixty percent say the cost of youth sports has them concerned about their ability to save for the future.
- Seventy-seven percent say youth sports affect household budgeting – discretionary spending gets cut first.
Parents bank on scholarships
- Parents typically spend between $100–$499 a month per child on elite youth sports, with the bulk of the money going toward travel and team fees. $1000+ a month is not unheard of.
- Two-thirds dream of scholarships to cover more than half of college costs. Forty percent are at least pretty sure their kids will snag one.
- A third hope their children will go to the Olympics or turn pro. In fact, 15 percent are counting on it.
- Parents of past players offer a reality check: only 2 percent of the children of those surveyed went to the Olympics or turned pro and 24 percent got a scholarship.
- Parents spend 4xs more time on children’s sports activities than on their own finances.
- Parents are more likely to characterize themselves as “Johnny-come-latelys”, who got a late start, but are working to catch-up.
- Nearly 60 percent believe they could be better disciplined when it comes to financial planning, investing and saving.
- While virtually all parents feel their child’s sports coach is important, only 35 percent believe a financial coach would benefit them.
In the end, parents say the benefits of sports outweighs the cost
- Only 26 percent of parents say they consider cutting back on their child’s sports activities.
- Approximately two-thirds strongly believe that their children learn important life lessons from sports.
- For parents, the joy of watching a child excel in sports (66 percent) is a top benefit followed by the bonding experience with a child (63 percent).
- For parents of adult children, most have no regrets (58 percent), while some would have tried to find a better balance between avoiding debt and saving for the future and spending on sports (42 percent).