Yahoo Finance Here’s the Most Parents Should Spend Monthly on Extracurricular Activities
What is the perfect amount to spend on your kids’ hobbies? According to a recent GOBankingRates survey, 48% of parents surveyed spend under $1,000 per year on activities related to their children. You want to give your children all the experiences they want, but you still need some left over to build wealth.
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However, 52% said they spend more than that, with 12% saying they spend more than $3,000 every year on their kids’ extracurriculars. According to the survey, 19% spend between $1,001 and $1,500, 10% spend $1,501-$2,000, 11% spend $2,001-$3,000. GOBankingRates reached out to financial experts to get their take on how much to spend on children’s activities.
Don’t Let Extracurriculars Cause Financial Strain
Steven Kibbel is a certified financial planner, entrepreneur and financial advisor at Prop Firm App. Kibbel said, though keeping your kids engaged is necessary, it shouldn’t cause you stress.
“Activities are great for kids because they teach skills and keep them busy. It’s important that these costs don’t cause money problems though.”
Kibbel added that the $1,000 per year figure seemed like a good amount to spend on your kids’ activities every year.
“Overall, I think activities are valuable for kids, but families have to balance them with what they can truly afford without stressing their finances. With some planning, most people can keep costs around $1,000 a year or less.”
Yiannis Zourmpanos, a financial advisor and a senior contributor at Bountii, said you might have to stretch your budget if your kid is especially gifted at something and it could pay off in the long run.
“Where I might advise going higher [that $1,000] is if a child has a special talent or strong interest in something more intensive, like competitive dance or music lessons. Supporting a gift could pay off in higher self-esteem and maybe even a college scholarship one day.”
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Focus On One Activity Per Kid
If you do find that you’re having trouble affording multiple kids’ interests, Kibbel said the trick is to give each kid one activity.
“This saves money by not paying for multiple sign-ups.”
Try To Save Where You Can
Kibbel said you’ll want to look for discounts and areas where you can cut costs to make sure you can comfortably afford extracurriculars.
“Things like memberships can lower class fees and equipment costs over time. Shift expenses in other parts of life if needed. Things like eating out less or canceling unused subscriptions can help free up cash.”
Kibbel said you can work children’s hobbies into your monthly budget to avoid any nasty surprises.
“Write down estimated fees, gear costs, and travel so the money isn’t a surprise. Spread bigger expenses over months if you have to.”
Look For Virtual Options
Derek Pankaew, the founder of Listening.com, said that although screen time is an issue for kids, if it helps them become more well-rounded and saves parents money in the process, it can be a win-win.
“There are tons of virtual and safe online kids groups and courses dedicated to the creative arts, book clubs, sports interests, movies, you name it,” Pankaew said. “Many of these come with built-in parental control features as well, so you can remain plugged into what’s happening and be reassured of safety. I know a lot of parents worry about their kids’ screen time, and this might seem to add to that. But screen time is only concerning when it’s used in isolating or passive ways, which is not the goal here.”
Methodology: GOBankingRates surveyed 1,021 Americans aged 18 and older from across the country between October 12 and October 16, 2023, asking twenty-three different questions: (1) How much did you spend on your pet in the last year?; (2) How much have you spent/are you planning to spend on Halloween this year?; (3) How much money do you spend on kid-related activities in a year?; (4) How much do you spend on average on your monthly utility bills (electric, heat/gas, water)?; (5) What spending/saving habits have you had to change in the last year due to inflation/rising prices? (select all that apply); (6) What was the biggest unexpected expense you had this year?; (7) How much do you currently spend on monthly car payments?; (8) Do you live in a single-income or dual-income household?; (9) In the past year, did you have to take on a side gig because of rising prices/inflation?; (10) How much do you bring home from your side job(s) each month?; (11) How much have your overall expenses gone up in the past year?; (12) What is your top financial priorities to end 2023?; (13) What is the top way you’ve earned your money/gained wealth?; (14) Have you started financially preparing for 2024?; (15) How much have you spent on home upgrades in 2023?; (16) How will the resumption of student loan repayments affect your budget?; (17) How much do you currently owe in student loans?; (18) How much do you spend on yourself (not including housing, food, etc.) out of each paycheck?; (19) How much do you spend on online purchases per month?; (20) Where do you shop for groceries most often?; (21) Do you shop around for groceries to get better deals?; (22) What are you currently invested in? (Select all that apply); and (23) What is the current value of your stock investments?. GOBankingRates used PureSpectrum’s survey platform to conduct the poll.
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This article originally appeared on GOBankingRates.com: Here’s the Most Parents Should Spend Monthly on Extracurricular Activities
