Savings Costs on Recreational Activities – Greatway Financial

Most adults can remember enjoying some form of recreational activity during their childhood. Though extra-curricular activities offer many benefits to the development of youth, the cost incurred by parents seems to go up every year. Evidently, the created memories and personal life lessons learned during the process of engaging in such activities are invaluable to its participants. Nevertheless, saving some extra cash where possible can be an added bonus to the experience.  According to Tangerine, Canadian families spend approximately $1,000 annually per child on sports.  Indeed, being a “sports mom or dad" isn’t inexpensive!

In order to lighten the load, any parent planning registration for their child or children should consider the following tips:

Household Budget Assessment:  
It is always important to know the amount of funds that are coming in and going out of your family’s budget. Be sure to asses what’s going on out, and track how many sports or activities are being enjoyed per child. Sometimes, reducing one or two activities – the ones that is the leased liked – can significantly balance the budget in your favour. Furthermore, re-examining the discretionary items in your budget, such as entertainment or restaurant meals and other expenses of the like can increase funds that can be redistributed in your personal budget.

Research and Seek Second Opinions:  
Most parents are, understandably, so enthralled by the joy of wanting to see their children happy, that they rush the process of registration and overlook potential helpful options or insights. Know the costs involved before offering a sport as an option to your child. Choosing sports or activities that don’t require much equipment or supplementary additions greatly changes the money going out of the budget for extra-curricular activities. Lastly, be aware of hidden costs as they can surprisingly add up.

Take Advantage of Tax Credits:
According to Federal Government, The Children's Fitness Amount does allow for allow parents to claim up to $1,000 per child each year, for a maximum tax refund of $150, for any child registered in a sport or activity. Similarly, The Children's Arts Tax Credit lets allow for parents to claim up to $500 per child per year, for maximum tax savings of $75 per child. Taking advantage of such tax allowances can aid in recuperating the costs of these activities.

“Kids build bonds, refine their social skills, learn to work as a team and also to build character. Evidently, the benefits overwhelming outweighs the costs.”

Teach Kids to Budget and Plan: 
For parents of preteen and teenage kids, a valuable life lesson that could be incorporated in the activity of sports and arts could also be understanding financial principles. Encouraging our kids to get a part-time job to experience the value of earning and paying for their own things could be beneficial beyond their youth years.  

Reuse and Recycle:
Though new equipment and tools are good to have; they aren’t always necessary. Your ability to distinguish between re-using gently used equipment versus buying next year’s model (for the sake of having it) can significantly help the budget and also teach our kids to know the difference between needs and wants.

 
The bottom line is that there are many benefits to extra-curricular activities. Kids build bonds, refine their social skills, learn to work as a team and also to build character. Evidently, the benefits overwhelming outweighs the costs. That being said, utilizing one or all of these tips can help in lightening the load.

Using some or all of these strategies can help keep the cost of your kids' sports "in check."

Source: Tangerine

Link: https://www.tangerine.ca/forwardthinking/spending/managing-the-cost-of-kids-sports

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