Many parents are spending thousands of dollars a year so their kids can play competitive sports. The cost of competition is putting their finances and retirement at risk! Financial advisor Brad Allen talks with Milwaukee’s WTMJ-4 to share tips on how to find a balance between kids’ athletic teams and parents’ retirement dreams.
1. Be Realistic – Not only are parents putting off saving for retirement, many are also not saving for their kids’ college. 67% of parents believed their kid would get an athletic scholarship to college, but only 24% did.
2. Invest Your Time – Parents are spending 10 to 12 hours a week involved in their kids’ sports. Meanwhile, they’re only spending three hours a week on their finances. They can use some of their waiting time before, during and after practices to invest in themselves and their futures. This is important at any age!
3. Set Goals – Just as young athletes and their teams set goals, it’s important for parents to set goals as well. Whether it’s increasing retirement savings contributions, wiping out credit card debt or building an emergency fund, write down your goal and put it somewhere you will see it every day. That will increase your motivation and the likelihood you’ll reach your goal.
4. Get a Winning Coach – Parents who are behind in retirement savings may want to consider getting help from a financial professional. You don’t have to pick the first person who comes up in a Google search; take the time to interview potential advisors. Ask what types of clients they typically manage and if they are used to working with clients with your specific needs.