NEWS
Got a Kid in Sports Heres How to Handle the Mounting Costs
Anyone with kids enrolled in sports knows the cost of participation can be quite high. Whether money is needed for new equipment, fees, or transportation getting to and from games and practices, the expenses quickly add up. Here are some things you can do to manage the financial impact.
Evaluate the goal of sports in your family. Every family has a unique relationship with sports. Understanding the place that sports has in your family and the goal it serves is a good place to start when determining how athletics will impact your finances. Is the goal of childhood athletics for your child to have fun or try something new? Is your child showing enough interest and talent to potentially pursue a scholarship or play in college? Understanding the goal can right size the cost you are willing to incur. For example, you may be more willing to pay for specialized equipment for your high schooler who is deeply passionate about basketball versus your 4th grader who may be trying it for the first time. Try balancing spending with your child’s interest and skills to ensure you are allocating an appropriate amount of money to athletics.
Set priorities. As a family, determine the importance of prioritizing athletic expenditures in the context of your other goals. Think about the amount of money you are comfortable putting toward athletics while also reflecting on the savings you would like to put toward other goals like family vacations and saving for college and retirement. Families with multiple kids may have each child pick one sport to focus on each season or select a singular camp to attend instead of saying yes to all opportunities. Prioritizing can mean having a conversation with your children about how you will support athletic opportunities. If your child has the talent or interest in attaining a college scholarship, have an age-appropriate conversation about the probability of achieving that goal and what it will take financially to make that happen. There is no denying that the cost of athletics can be steep, but putting thought behind what expenses are worth incurring is financially wise.
Budget for the most common expenses. Expenses can generally increase as your child gains age and expertise. Consider the common costs associated with participation in a sport and factor these into your budget: initial equipment, uniforms, training camps and travel. As your child ages, keep in mind the cost of middle school and high school sports can increase to accommodate further transportation to games and team bonding events. Be proactive in understanding and planning for the current and futures costs of athletics.
Prepare for the unexpected. No one wants to think about their child being injured, but it is necessary to plan for the possibility. Consider the potential impact financially if your child is injured and needs health care – which could include everything from physical therapy to more comprehensive care. Review your health care coverage to see how it applies to walk-in treatment, emergency care and preventive costs. Broken bones, sprained ankles and repetitive stress injuries happen, and you’ll want to be prepared for any out-of-pocket expenses. This is even more important if your child plays a contact sport.
Many children learn valuable life lessons from participating in sports throughout their childhood. If participation in athletics is important to you or your child, take some time to consider the associated costs. A financial advisor can help budget for the expected and unexpected expenses of childhood sports, while making sure that you stay on track to meet your other goals.
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Michael D. Lanuto, CRPC®, AWMA® is a Financial Advisor with S.M. Miller & Associates, a private wealth advisory practice of Ameriprise Financial Services, LLC. in Albany, NY. He specializes in fee-based financial planning and asset management strategies and has been in practice for 9 years. To contact him: 518-949-2039; 4 Atrium Drive, Ste 200, Albany, NY, 12205; Michael.Lanuto@ampf.com; https://www.ameripriseadvisors.com/michael.lanuto/lp/request-contact/3/.