OMAHA, Neb.--(BUSINESS WIRE)--With hopes that their children will earn college athletic scholarships or even make it to the professional leagues, many parents are spending a significant portion of their income and time on youth sports. According to a new survey conducted by The Harris Poll on behalf of TD Ameritrade, youth sports expenses impact three in four (74%) American sports parents’ ability to save and invest for retirement.
“Many parents believe investing in their children’s athletics will pay off in the form of a college scholarship, or even making it to the pros,” explained Dara Luber, senior manager of retirement at TD Ameritrade. “While children’s involvement in sports leagues can be greatly beneficial in helping to develop life skills, parents should never lose sight of saving for retirement and building a long-term financial plan for the well-being of their family.”
Parents are burning out to fund their children’s activities
Parents
say a third of their income, on average, goes toward covering their
children’s expenses, including sports.
- One in four (27%) spend $500 or more and about 1 in 10 (8%) spend more than $1,000 per month on their kid’s athletics.
- In order to pay for their kids’ sports expenses, parents are taking fewer vacations (36%) or working a second job (19%).
They’re investing time, as well as money.
- One in five (19%) sports parents spends 20 hours or more per week on their children’s activities, while nearly half (45%) spend only one to three hours each week on financial planning activities.
Sports expenses are impacting parents’ retirement savings – and dads
are especially concerned
Sports parents today are less likely
to save for retirement and maintain a budget than they were three
years ago. Nearly three-quarters of sports parents say the cost of
youth sports has impacted their ability to save and invest for
retirement, and dads are particularly concerned about this issue.
- One in five (21%) sports parents are delaying retirement to pay for the expenses associated with youth sports.
-
The number of sports parents who are very concerned about the cost of
youth sports and the impact it has on their ability to save and invest
for retirement has doubled since 2016, from 7% to 14%.
- One in five (19%) dads are very concerned about the impact of their kids’ athletics on their own ability to save.
Betting big on scholarships, and even going pro, as the payoff
Parents
are banking on their child receiving a college athletic scholarship as
payoff for the investment they have made in their child’s sports.
Parents are more confident that their child will receive a college
scholarship than a few years ago, though the number who report having
children who actually received one has dropped by half since 2016.
- Twenty percent of sports parents are certain that their child will secure a college athletic scholarship.
- From 2016 to 2019, the number of sports parents’ children who secured an athletic scholarship has declined by more than half (24% in 2016; 11% in 2019).
- The majority of parents believe college scholarships will cover more than half of tuition, and one in 10 are optimistic their child will receive a full ride.
One in three sports parents hope their child will reach the Olympics or “go pro,” despite the very low number that actually make it to that elite level – and dads tend to be the most optimistic.
- Forty-one percent of dads expect their child to become a professional athlete.
- Five percent of sports parents’ children have reached the Olympics or gone pro as of 2019.
“While securing an athletic scholarship could be a long shot, it’s important to keep in mind that retirement is definitely happening,” said Luber. “It’s essential to start saving and investing early when building a retirement nest egg, so parents should consider aligning their family budgets accordingly.”
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Source: TD Ameritrade Holding Corporation
About The Harris Poll
The Harris Poll is one of the
longest-running surveys in the U.S., tracking public opinion,
motivations and social sentiment since 1963. It is now part of Harris
Insights & Analytics, a global consulting and market research firm that
strives to reveal the authentic values of modern society to inspire
leaders to create a better tomorrow. We work with clients in three
primary areas; building twenty-first-century corporate reputation,
crafting brand strategy and performance tracking, and earning organic
media through public relations research. Our mission is to provide
insights and advisory to help leaders make the best decisions possible.
TD Ameritrade is separate from and not affiliated with the Harris Poll,
and is not responsible for their services or policies.
Survey Methodology
This survey was conducted online within
the United States by The Harris Poll on behalf of TD Ameritrade from
February 28 to March 14, 2019, among 1,001 U.S. adults ages 30 to 60.
Sports parents also had 1 or more children of all ages who play/played
“club or elite competitive youth sports,” defined as “paying for highly
competitive or elite club teams run by a non-school organization,” as
well as more than $25,000 in investable assets.
