Raising kids can be expensive. There’s food, childcare, healthcare and, on top of all that, activities like sports and art. Before parents write off expensive extracurriculars, one expert urges them to think of them as an investment – and offers tips for lessening the financial blow.
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“Having gone through two kids playing hockey, I feel the pain, and on the backside, I look at the investment we made in the kids, the activities, it was well worth it,” said Craig Bolanos, co-founder and wealth advisor at VestGen Wealth Partners. “But, we did it within strong governance, strong messaging, and reminding the children what a privilege it was to play in some of these clubs, because not everybody gets a chance.”
He joined WBBM Newsradio’s Rob Hart on the Noon Business Hour this week to discuss financial strategies for investing in their kids.
According to Lending Tree, 71% of parents with children younger than 18 said at least one of their kids was involved an extracurricular activity as of 2023. It said that parents were spending an annual average of $731 per child on these activities.
“When I talk to families out there, I really say, ‘Hey, we have to be sincere about the cost structure,’” Bolanos explained. “We have to be sincere about affordability and we have to know there’s trade-offs for most families participating in high-end travel sports and clubs. There’s not going to be separate vacations. The vacations are going to be integrated with those clubs and sports.”
In addition to creating an activities budget, Bolanos also recommended looking into secondhand gear as a way to bring down costs for expensive sports like hockey. He also urged parents to get involved and volunteer, which can help facilitate cost-saving opportunities in the community.
“Don’t be afraid to ask for help in terms of discounts, and never forget register early,” Bolanos said. “Often… there is early bird pricing.”
Hart, the parent of Irish dancers, said that his family has found success with both secondhand gear shopping and volunteering.
“Not only am I passing this along as advice, but I’m living proof,” he said.
“We have to remember that our kids are going to be shaped by their experiences,” Bolanos said. “They’re not going to be shaped by necessarily all that they read in textbooks. And I think strong organizations that have great culture, great discipline and lead to activity are lifelong lessons in the pursuit ultimately of happiness. And that’s why it’s worth every penny.”