TD Ameritrade Survey: Parents Prioritize Kids’
Sports Spending Over Retirement Planning
A new TD Ameritrade survey reveals sports parents are invested
in helping kids achieve athletic aspirations, yet often sideline
their own financial goals. Sports parents are often the unsung
heroes behind top athletes and their dedication to their children
is admirable. The survey results highlight that natural desire to
put their children’s needs before their own. In addition to
sacrificing family vacations and other extras, parents of elite
athletes admit to saving less, delaying retirement and tapping
college funds to pay for sports.
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While many parents have achieved a good balance between spending
on sports and saving for retirement, some could benefit from
putting the same enthusiasm to work for their finances, especially
when it comes to mapping out their long-term financial plan.
Of the 1,001 sports parents surveyed:
- Two-thirds regularly contribute to a
retirement account, while one-third do not (33 percent)
- A majority have no long-term financial
plan (57 percent)
- Sixty percent say they have an
emergency fund, but 40 percent do not
Sports parents bank on scholarships
When it comes to building a retirement nest egg, the cost of
college is a sports parent’s biggest financial hurdle. Forty-three
percent of parents surveyed say competitive youth sports and club
teams are too expensive, but they are still willing to pay so their
kids can play. On average, parents spend between $100–$500 a month
per child on competitive sports, and nearly 20 percent spend at
least $1,000 or more. Many hope the investment will translate into
scholarships or professional careers. However, parents of athletes
who are now adults serve up a reality check.
Scholarship Hopes vs. Reality
- 67 percent of sports parents hope for
an athletic scholarship
- 24 percent of athletic youngsters
actually earned one
Olympic Hopes vs. Reality
- 34 percent of sports parents think
their kid will go to the Olympics or go pro
- 2 percent of athletic youngsters
actually made the Olympics or turned pro
"The survey highlights a real need for sports parents to get on
track with a financial plan, especially considering that only a
small percentage of young athletes secure a scholarship or turn
pro, but 100% of parents will need a nest egg,” said Carrie
Braxdale, managing director of investor services, TD Ameritrade.
“Each of us has a shot at a comfortable retirement, with the right
financial planning and support. Just like an elite athlete, it’s a
matter of committing to an approach and taking the steps to reach a
goal.”
Sports parents need to get their financial game on
A majority of the sports parents surveyed agree that investing
wisely and saving are the best ways to pursue retirement goals (79
percent). Yet these parents show less commitment to their
retirement goals than their children do to sports.
- Parents spend an average of 10-12 hours
a week on youth sports and only three hours a week on their
finances.
- Parents are more likely to characterize
themselves as “Johnny-come-latelys” who got a late start on their
retirement planning, but are working to catch-up.
- Nearly 60 percent say they could be
better disciplined when it comes to financial planning, investing
and saving.
“As an Olympic athlete and mom, I know firsthand about getting
kids involved in sports as a way to teach them about setting goals
and achieving dreams. I also know how important it is to prepare
for life beyond competition," said Chaunte Lowe, three-time U.S.
Olympic high jumper. “Today’s parents are ‘all in’ when it comes to
their kids’ athletic activities, but they also need to strike a
balance between supporting their kids’ goals and saving for their
own financial future. With limited time and resources due to sports
commitments, parents could benefit from a little financial coaching
to keep them on the right track.”
Despite the costs, parents say the benefits of youth sports
are priceless
The trend toward specialization is strong, with an overwhelming
majority of young elite athletes (83 percent) concentrating on just
one sport. The survey showed that specialization tends to occur
between the ages of 9-10. A year-round commitment is typical, and
most play their sport at least nine months out of the year (83
percent).
Parents say such dedication can have its drawbacks.
- The top drawbacks to competitive youth
sports for parents are the expenses (77 percent), having less
personal time (74 percent) and having less time with other siblings
(59 percent).
- When it comes to the kids, parents are
most concerned with the potential for burnout (49 percent), the
time commitment (49 percent) and possible injury (46 percent).
But the benefits of youth sports can outweigh downsides.
- The benefits of competitive sports can
be priceless, according to parents surveyed, who rate teaching
values (67 percent), increasing confidence (41 percent) and getting
regular exercise (36 percent) as top reasons they keep the kids
involved.
- Parents say the joy of watching a child
excel in sports (66 percent) is their personal top benefit,
followed by the bonding experience with a child (63 percent).
- Only 26 percent of parents say they
consider cutting back on their child’s sports activities.
- Parents of adult athletes generally
have no regrets (58 percent), though some would have tried to find
a better balance between juggling debt, saving, and spending on
sports (42 percent).
Parent or athlete, setting goals is a first step to achieving
dreams
All across the world, parents and their aspiring athletes will
be tuned into the 2016 Rio Olympic Games to cheer on elite athletes
competing on sport’s ultimate stage. More than 60 percent of
parents of elite athletes say their child has Olympic aspirations
too, leaving parents facing the tough task of maintaining realistic
expectations without discouraging their child from dreaming
big.
"The decision to let your child play sports competitively is a
personal one," says Lowe. "We invest time and money in order to
fulfill our dreams and aspirations, and in some cases, our biggest
risk and regret comes from not chasing the dream at all. Setting
goals and putting a plan into action are the first steps."
TD Ameritrade has several goal planning tools and calculators to
help parents and other investors lay the groundwork for reaching
financial goals whether it’s sending children to college, buying a
dream house or retiring on a beach.
- TD Ameritrade’s free Retirement
Calculator™ scores an investor’s probability of having enough money
in retirement1.
- TD Ameritrade also offers complimentary
goal planning sessions with an Investment Consultant to help
individuals and families set investing goals and develop a detailed
strategy to pursue them. In person or over the phone, TD Ameritrade
professionals are available to help investors define their goals
and create a plan.
To get started, visit
http://www.tdameritrade.com/goalplanning or call
866-551-6915.
TD Ameritrade has teamed up with U.S. Olympians to support and
mentor the “next generation” of athletes. Follow along with Olympic
hopefuls and the TD Ameritrade-sponsored U.S. Olympic athletes on
social media using the hashtag #likeyou. Or visit
www.tdameritrade.com/likeyou.
For the latest news and information about TD Ameritrade, follow
the Company on Twitter, @TDAmeritradePR or @TDAmeritrade
Survey methodologyA 15-minute online survey was conducted
by True North on behalf of TD Ameritrade, Inc. of 1,001 parents of
children of all ages between May 12 and May 17, 2016. Respondents
were 30-60 years of age and parents of children who currently or
previously participated in competitive youth sports, defined as
playing for highly competitive or elite club teams run by a
non-school organization. The margin of error is +/-3%.
About TD Ameritrade Holding CorporationMillions of
investors and independent registered investment advisors (RIAs)
have turned to TD Ameritrade’s (Nasdaq: AMTD) technology, people
and education to help make investing and trading easier to
understand and do. Online or over the phone. In a branch or with an
independent RIA. First-timer or sophisticated trader. Our clients
want to take control, and we help them decide how — bringing Wall
Street to Main Street for more than 40 years. An official sponsor
of the 2014 and 2016 U.S. Olympic and Paralympic Teams, TD
Ameritrade has time and again been recognized as a leader in
investment services. Please visit TD Ameritrade’s newsroom or
www.amtd.com for more information.
Brokerage services provided by TD Ameritrade, Inc., member
FINRA (www.FINRA.org)/SIPC (www.SIPC.org)
1The TD Ameritrade Retirement Calculator™:
IMPORTANT: The projections or other information
generated by the Retirement Calculator regarding the likelihood of
various investment outcomes are hypothetical in nature, do not
reflect actual investment results and are not guarantees of future
results.
Source: TD Ameritrade Holding Corporation
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version on businesswire.com: http://www.businesswire.com/news/home/20160801005136/en/
TD Ameritrade Holding CorporationKristin Petrick,
402-574-6569Communications & Public
AffairsKristin.Petrick@tdameritrade.comorMelissa Matson,
201-369-5933Communications & Public
AffairsMelissa.Matson@tdameritrade.com
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