Cost of Youth Sports Delaying Retirement for Parents
May 15 2019 - 8:30AM
Business Wire
Three-quarters of sports parents say the cost
of youth sports has impacted their ability to save and invest for
retirement, survey for TD Ameritrade reveals
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.
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Sports Parents struggle to get their
financial game on (Graphic: TD Ameritrade)
“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
activitiesParents 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 concernedSports 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
payoffParents 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.”
About TD Ameritrade Holding CorporationTD Ameritrade
provides investing services and education to
more than 11 million client accounts totaling approximately $1.3
trillion in assets, and custodial services to more than
7,000 registered investment advisors. We are a leader in U.S.
retail trading, executing an average of approximately 850,000
trades per day for our clients, more than a quarter of which come
from mobile devices. We have a proud history of innovation,
dating back to our start in 1975, and today our team of
10,000-strong is committed to carrying it forward. Together, we are
leveraging the latest in cutting edge technologies and one-on-one
client care to transform lives, and investing, for the better.
Learn more by visiting TD Ameritrade’s
newsroom at www.amtd.com, or read our stories
at Fresh Accounts.
Brokerage services provided by TD Ameritrade, Inc., member
FINRA (www.FINRA.org) / SIPC (www.SIPC.org)
Source: TD Ameritrade Holding Corporation
About The Harris PollThe 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 MethodologyThis 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20190515005052/en/
For Media:Becky Niiya, 402-574-6652Director, Corporate
Communicationsrebecca.niiya@tdameritrade.com@TDAmeritradePR
For Investors:Jeff Goeser, 402-597-8464Managing Director,
Investor Relationsjeffrey.goeser@tdameritrade.com
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