Youth sports is a multi-billion dollar industry and as a sports mom myself, I know we were big contributors to it. In an article on CNBC.com, Lorie Konish writes that 27 percent of parents spend $500 or more a month on their children’s sports. That seems crazy high, right? But, especially if you have more than one child, it’s not hard at all to spend that much on sports. Trust me, I know.
As parents of two swimmers we easily did that, especially as the kids got older. We traveled to meets, stayed in hotels and ate out. Then we had the plan to buy an RV to eliminate the hotel stays. There’s some rocket science for you. Do you have any idea what it costs to own an RV? Yep. Pretty much a lot more than a few nights in a hotel per month.
Besides the travel, there were monthly dues for the club team which go up as your children get faster. Private lessons at $50 to $80 an hour to ensure your kids DO get faster. Then, the $485 “fast suit” to super make sure your kids are fast.
Here’s an excerpt from the article and some ideas to ensure you don’t go broke before your kids become super stars making beaucoup bucks–and you can afford your own retirement in case that plan doesn’t pan out–or you don’t win the lottery:
“Your child’s sports could be sabotaging your financial health”
Parents are spending more than ever on their children’s sports with the hopes that they will make it to the big leagues.
And dads are often the ones likely to shell out the most cash on their children’s activities, according to a new survey from TD Ameritrade.
Yet spending more with the hope that your child will make it big could have consequences for your finances, particularly your own retirement.
The survey, which was conducted online between February and March, included 1,001 adults ages 30 through 60. Of those respondents, those who were considered “sports parents” had one or more children in elite or club competitive sports and had more than $25,000 in investable assets.
The result: 27% of parents spend $500 or more per month on youth sports.
This was especially true for fathers, 20% of whom spend $500 to $999 each month per child on youth sports. Meanwhile, 7% of dads admitted they spend $1,000 or more.
That money is going towards everything from equipment to private coaching to tournaments out of town, according to Dara Luber, senior manager of retirement at TD Ameritrade.
Those dads may be reliving their youth or reviving their own professional sports aspirations, Luber said.
But the one thing those fathers — and all parents — need to be wary of is whether those costs will force them to make sacrifices in other important areas.
For the parents surveyed, that could mean cutting back on spending on entertainment or vacations. It could also mean taking on a second job or delaying retirement.
One in 5 dads surveyed said they worry about how their spending on their children’s sports will impact their retirement savings.
TD Ameritrade also found that sports parents are less likely to save for retirement through a 401(k) plan or individual retirement account than they were three years ago.
“There is nothing wrong with helping your son or daughter realize their sports dreams, but it definitely shouldn’t come at the expense of your own retirement or understate your family’s needs,” Luber said.