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 activities
Parents
say a third of their income, on average, goes toward covering their
children’s expenses, including sports.
They’re investing time, as well as money.
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.
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.
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.
“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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190515005052/en/
For Media:
Becky Niiya, 402-574-6652
Director, Corporate
Communications
[email protected]
@TDAmeritradePR
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Jeff Goeser, 402-597-8464
Managing Director,
Investor Relations
[email protected]