Tips for Managing the Costs of Your Kids' Sports

At a time when so many children are involved in organized sports, and often more than one, how can you make sure you’re not breaking the bank to fund these extra-curricular activities? Not to mention if you have more than one child in numerous sports. Back in the day, kids often honed their athletic skills at the neighborhood park. Organized sports teams, camps and clinics have now replaced parks and pick-up games. What’s more, the cost of youth athletics, like many consumer products, has dramatically increased.

In addition to team fees, there’s often pressure to buy expensive equipment and to pay for private lessons and pricey camps. Plus, there are extras — such as weekend or out-of-town tournaments, embroidered sweatshirts, team photos and post-game celebrations — that can strain your pocketbook and add up quickly.

How can you manage the costs and plan for the future?

First, and foremost, evaluate your goals and expectations for an athletic activity and determine what level of play and involvement makes the most sense given your child’s time, talent and interest and your budget.

Second, keep the following in mind:

• You can always say no to a sport if the cost is too far outside your budget and look at other options. Also, you may want to keep an open dialogue with your children so they have a better understanding of the big picture.

• An intramural team may be a more affordable alternative to a traveling team because intramural teams tend to have fewer practices and games and to rely on volunteer coaches, which helps reduce their cost.

• You can use team meetings as an opportunity to ask important questions, for example, “Do the kids really need new warm-ups every year?” or “Can we reduce the number of out-of-town travel trips per season?”

• You can help get your child’s team involved in fundraising activities — for example, a golf tournament, car washes, pancake breakfasts, etc. — to help generate revenue and offset costs.

Third, remember to plan for the future. For every dollar you spend on sports today, consider investing the same dollar amount in a college savings plan for your son or daughter. Since athletic scholarships are few and far between, this will help ensure that your long-term goal of a college education for your child isn’t compromised by your current investment in their athletic development.

Last, but not least, if you’d like help determining what you can afford to put toward your child’s athletic interests, talk to your financial advisor. He or she can help you establish a budget for your children’s extracurricular activities based on your current income and savings goals.

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Steven J. Gehrke, CFP®, MBA

Financial Advisor, CERTIFIED FINANCIAL PLANNER® practitioner

Ameriprise Financial, Inc.

19950 Dodd Blvd. Ste 102-202

Lakeville, MN 55044

(651)221-0711

ameripriseadvisors.com/steven.j.gehrke/

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Steven J. Gehrke, CFP®, MBA, is a Financial Advisor and CERTIFIED FINANCIAL PLANNER® practitioner with Ameriprise Financial Services, Inc. in Lakeville, MN. He specializes in fee-based financial planning and asset management strategies and has been in practice for 13 years.

This communication is published in the United States for residents of Minnesota only; and this advisor is licensed only in the state(s) of MN.

Ameriprise Financial and its representatives do not provide tax or legal advice. Consult with your tax advisor or attorney regarding specific tax issues.

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