There are many positive benefits of having your kids involved in sports: making new friends, physical activity, and learning the benefits of teamwork to name a few. However, I have noticed a trend with my coaching clients recently, and that is out of control costs revolving around their kids’ sports activities.
It’s not hard for the cost of sports (and other extra-curricular activities) to spiral out of control, especially when you have multiple children. How do you know when you have crossed that line? Certainly it’s going to vary based on your family’s financial situation.
My general recommendation is that recreational expenses make up 5 – 10% or less of a family’s take home pay. Unfortunately, I’ve seen families shelling out the equivalent of a luxury car payment (or small house payment!) on sporting related expenses. This is a real problem if these costs are preventing parents from paying down their debt and saving for their kids’ college.
Where I’ve seen these astronomical costs crop up are in the “competitive,” “elite,” or “select” sports teams. Unlike recreational and most school-related sports teams, these elite teams regularly travel across state lines to compete. This adds additional, and sometimes outrageous, costs for hotel rooms, transportation, and restaurant meals.
These competitive teams frequently recommend that student athletes pay for extra one-on-one coaching to improve their skills. Costs can mount up very quickly, and we haven’t even figured in the basic costs of joining the team and paying for sports equipment and uniforms!
I’ve had parents object to my suggestion that maybe a recreational sports league would better fit their budget and still give their child the positive benefits of being on a team. “This money is an investment, because Johnny’s coach said it’s very likely that he’s going to get a baseball scholarship.”
The reality is that athletic scholarships are extremely hard to come by. In fact, 0.51% (only 1 in 200) of high school boys who play baseball will receive an athletic scholarship. This varies by sport, of course. Most of the popular sports – baseball, softball, basketball, volleyball, soccer, swimming, and golf – are awarding less than 2% of high school athletes with scholarships. (Hint, if you really want your kid to get a sports related scholarship, have him or her join the rowing team!) To see how your child’s sport stacks up, check out this infographic on eCollegeFinder.org: http://blog.ecollegefinder.org/2012/06/11/want-an-athletic-scholarship/
I took karate lessons in high school and really loved it. It gave me confidence, was a good outlet for stress, and I made new friends. I’m appreciative that my parents allowed me that experience. So, yes, I do want you get your kids involved in sports… but I don’t want it to become a black hole in your budget! If you are able to afford competitive sports and your kids want to do it, then by all means, go for it!
First and foremost, crunch the numbers to see what your family can realistically afford to spend on recreational expenses. When you’re considering a sport for you child, be sure to investigate all of costs, not just the initial fee to join the team.
Be realistic about your child’s chances of an athletic scholarship. It may be a better use of your money to invest the difference between the cost of a competitive team and a recreational or school based team and put those funds in a 529 plan for college.
Christine Luken is the Financial Lifeguard and a veteran Meal Planner. She helps individuals, families, and entrepreneurs design a financial road map to help them arrive at their Preferred Financial Destination. You can find Christine’s blogs, podcasts, and videos on her Financial Lifeguard website and her Meal Planning Monday blog.