Schools almost out, and you have to think about what to do with the kids during summer. And you have to think about what its going to cost. Lending Tree did the work for you, and have submitted the following food for thought. Morgan Lanier with Lending Tree sent this to us.
As a parent, you want to give your child every opportunity to succeed — but at what cost?
When it comes to extracurriculars — which 71% of parents with children younger than 18 say at least one of their kids is involved in — it’s a hefty one. In fact, parents with kids in extracurriculars spend an average of $731 per child on these activities, according to the latest LendingTree survey of 2,000 U.S. consumers.
Full report: https://www.lendingtree.com/credit-cards/study/kids-extracurriculars/
Key findings
- Extracurriculars are the name of the game for children younger than 18, with sports being the fan favorite. 71% of parents with young children say at least one of their kids participates in extracurricular activities — sports top the list at 70%, followed by music (41%) and dance and art (tied at 28%). Parents who earn $100,000 or more a year are most likely to say one of their kids participates in a competitive activity, at 86%.
- Although kids may feel the heat to compete, extracurriculars are no (financial) cakewalk for parents. Parents with kids in extracurriculars spend an average of $731 per child on activities, with the majority (62%) saying they’ve been stressed about paying for it. To help make ends meet, 42% of these parents say they’ve taken on debt to pay for their kids’ competitive activities, while 47% agree their children’s outside-of-school activities are at least somewhat of a financial strain.
- Some justify the cost by viewing the extracurriculars as an investment in their children’s futures, although the ends may not justify the means. 68% of parents with kids in activities think these extracurriculars could one day lead to income or a career. (Dads (74%) are more optimistic about this than moms (61%).) In addition, 80% of parents who believe their child will continue their activity into college think they’ll receive tuition assistance for it. However, it may shock these parents that fewer than 2% of high school student-athletes are offered athletic scholarships.
- Competitive activities don’t necessarily end when school breaks for summer, and neither do their expenses. 89% of parents with kids in extracurriculars plan to spend money on summer activity programs, with the average spend totaling $1,453 across all their children. Parents with an annual household income of $100,000 or more plan to spend substantially more, averaging $2,123 for this upcoming summer. Overall, 42% say they’ll go into debt to pay for those summer programs.
“Any parent with a kid that’s active in extracurriculars can tell you that it can be really expensive to take part in them,” says LendingTree chief credit analyst, Matt Schulz. “That’s true whether you’re talking about anything from soccer to choir to debate to robotics. They can all be really pricey, and the longer your kid does them and the better they are, the more it can cost. That can create real stress in families because any good parent wants to support their kids’ passions, but sometimes the cost can make that nearly impossible.”
Expert tips on budgeting for your kids’ extracurriculars
- Budget, budget, budget. Extracurricular activities can be crazy-expensive, so it’s vital to carve out room in your budget for them, if possible.
- You don’t always need new. “It’s easy to think that your kid needs the nicest musical instrument, shoes or equipment, but the truth is they probably don’t,” Schulz says. “A hand-me-down from a friend, relative or neighbor can be perfect, as can items from consignment stores or used sporting goods stores.”
- Have your kid pitch in. Talking to your kid about the costs of their activities can be a great way to help them learn the value of a dollar. You don’t have to give them all the details or turn it into an economics lecture, but having a high-level talk about what the family is facing can be really useful.
Here is the full report.
photo: Getty Images