Don’t Go Into Debt in Your Child’s Extracurricular Activities
More than half of Americans have gone into debt for their kids’ extracurricular activities, new research shows – and that might not be such a good idea.
According to CompareCards.com , 62% of American parents have taken out debt to allow their kids to play football or ballet. Nine percent of these parents owe over $ 5,000 and nearly a third owe over $ 3,000.
This is where it gets really interesting. Research shows that most parents who pay for their children’s extracurricular activities, whether they are in debt or not, believe that the activities will help their children earn money in the future.
- The more you spend, the more likely you are to think it will pay off – 90% of parents who spend at least $ 4,000 a year think their child will make money from it one day, compared to 75% of parents who spend less than $ 1000.
- 94% of parents currently paying debts for their child’s activities believe that this will bring income in the future.
In other words: Parents don’t put their kids in team sports or send them to dance camp just because they want to encourage socialization, team spirit, or exercise. They hope the extracurricular activities will pay off. Literally.
Sometimes these activities actually help children earn money in the future. Many children receive college scholarships for their ability to play lacrosse, violin, or basketball; My 16 years of piano lessons allowed me to earn some money as a choral accompanist.
But not every parent who goes into debt to pay for their kids’ classes will see such a payback in the future.
As CompareCards.com writes:
Despite what 81% of our respondents say, most children will never earn a dime from the activities that are their passion. Someone may end up making some money on the side, such as a musician performing at concerts in town for side money, or a retired athlete judging amateur league games for a few extra dollars. Others may even make modest money by following their passion as a coach or teacher. A very select few may even become the next LeBron or Beyoncé. However, the truth is that most of them won’t, and while you never want to discourage your child from following their aspirations, you owe it to yourself to make sure that your child’s pursuit of a dream doesn’t upset you and your family. from your dream of financial stability – and even retirement.
Are you in debt for extracurricular activities for your kids? How much debt are you willing to take on before you tell your child to leave the tour team or return the rented cello? Would it be different if your child was unusually talented or extremely motivated?
These are tough decisions, but at some point a lot of parents will have to think about it – and if you are the kind of parent who worries that you are shattering your child’s dreams without letting them pursue a certain interest, remember that as your kids grow up, they may enroll. for adult ballet lessons or softball teams after work and you’ll be fine.