For every parent, their children are their priority. They would do anything to see their kids happy. Debt is a looming issue among parents as they take on short or long term debt to fulfill their young one’s needs. According to Credit Karma, according to a survey done in 2018, parents borrowed money to pay for experiences for their children.
A recent survey by comparecard.com has revealed that parents are willing to go into debt to make sure their kids enroll in extracurricular activities such as sports as they believe it could bring them extra income in the future.
The survey involved 700 parents whose children take part in sports and hobbies outside their classes. Data showed that 8 out of 10 of the parents interviewed had gone into debt to pay for soccer, piano, ballet, and painting classes.
Having your finances right should be a priority. As a parent, even when you decide to take short term loans for your kid’s future, ensure you have a payment plan. Going into debt is very easy, and you may find yourself with a low credit score and end up not qualifying for mortgages. When your credit score is low, what you need is a credit repair company to guide you on how to repair it, which is why at CreditRepairCompanies.com, you get guidance on how to go about it.
The findings show that the parents interviewed believed that the more money they spent, the higher the chances of it paying off. Out of the parents who spend $4,000 and above a year on their children’s extracurricular activities believed that their kids would earn from these activities.
This particular survey showed that it’s not only sports parents who had this ambition of their kids earning from such but also ballet parents. The chief industry analyst, Matt Schulz said that sports were the most popular invested activity with 30% of the parents investing in them followed by 16% music parents, 15% dance, 12% gymnastics and so much more. 46% of the parents spent over $1,000 annually.
If this is not enough, a survey by Country Financial has backed this data as they also released a study they conducted. The survey showed that 56% of the parents were willing to get into debt to see their sons and daughters go to school. 18% of them had already taken out a loan on it.
Some parents stated that they were taking their children through these activities because their children had a chance of their college application getting approved. The sad bit about it is that in the survey by CompareCards.com, one in every three parents interviewed were still in debt. 9% of them owed over $5,000, while 27% owed more than $3,000. Why all this? In the hope that their children will get into a professional career in sports.
In as much as most parents are willing to invest in their kids’ future, is getting into debt and becoming bankrupt worth it? Are there ways they can do this better without necessarily getting into debt?
Ways to invest in your child without necessarily going into debt
1.Leave below your budget
Sometimes, sacrifices have to be made. How about minimizing your expenses? Try to eat out less often and save the extra pennies you spend. Try to look for cheap vacation options. Saving is a lifestyle which can easily become a habit if you have the discipline. Cut back on your expenses, and you can comfortably pay for your kid’s sporting activities.
2.Take on a part-time job
Well, part-time jobs are in plenty. How about taking on a second job that doesn’t affect your main job? It could be you working for an IT company in Malibu virtually, teaching kids how to code or merely babysitting your neighbor’s children. Get creative on how to earn more money to facilitate the extra activities you want your kids to experience.
Instead of borrowing loans to service your kid’s future, why not start a saving culture in preparation for the expenses? It can start even before you have any kids so that when they come, you have everything planned out. Open an education fund for your children and include extracurricular activities. Saving can save you from future bad debt situations such as your home being sold to cover debts you owe people.
There have been cases where people have had to give up their cars and homes for a loan they took out and never paid. Saving could be as little as $50 a month, and by the time your kid is old enough to start their swimming lessons, they can comfortably cover their expenses.
Parents should learn to make sound financial decisions for their children because the same people they are sacrificing for, tend to emulate them. Living a debt-free life should be every parent’s mission.