CHARLOTTE, N.C., May 11, 2021 /PRNewswire/ -- While it's probably
not a shocker that kids' competitive activities are expensive, you
may be surprised to find that nearly 8 in 10 parents have gone into
debt because of it. That was one of the major findings in a recent
LendingTree survey of more than 1,000 parents with children ages 18
and younger.
Key findings
- The majority of kids take part in competitive
extracurriculars, especially those from higher-income families.
In fact, 70% of parents say one or more of their children
participate in at least one competitive activity. That jumps to 80%
among those earning $100,000 or more,
compared to 49% of those with household incomes below $35,000.
- Competitive kids' activities are pricey, and those costs are
causing parents to stress. Nearly 1 in 4 parents with a kid
enrolled in a competitive extracurricular spend $4,000 or more yearly on that activity. About
half (46%) of parents say they're often stressed about paying for
those programs.
- Kids' competitive activities and debt often go hand in
hand. Nearly 8 in 10 (79%) parents surveyed have been in debt
in order to pay for a child's activities, a big jump from the
April 2019 edition of this survey
when 62% said the same.
- Parents place big bets on their kids' future. Many
parents (87%) are hoping for a return on investment for their
competitive extracurricular spend, believing that the activity
could lead to income for their child. That's up from 80% who
thought the same in the April 2019
survey.
- Most parents say the pandemic didn't pause paying for kid's
activities, and stimulus payments helped. Sixty-five percent of
respondents said they kept paying for activities during the
pandemic at the normal rate. However, 69% of parents had to rely on
their economic impact payments as a source of funding.
- It's a summer of spending for many parents as they try to
make up for lost experiences from the pandemic. Eight in 10
plan to spend money on summer programs for their child, and 73% of
them may take on debt to do so.
"There's an awful lot of spending going on to make up for lost
time," said LendingTree's Chief Credit Card Analyst, Matt Schulz. "And now that vaccinations are on
the rise and life is opening up more, many parents are trying to
give their children a great summer — no matter the cost."
To view the full report, visit:
https://www.lendingtree.com/credit-cards/study/kids-competitive-activities-may-lead-to-debt/.
Methodology
LendingTree commissioned Qualtrics to
field an online survey of 1,006 parents with kids aged 18 and
younger, conducted April 8 to April 15,
2021. The survey was administered using a
non-probability-based sample, and quotas were used to ensure the
sample base represented the overall population. All responses were
reviewed by researchers for quality control.
About LendingTree
LendingTree (NASDAQ: TREE) is the
nation's leading online marketplace that connects consumers with
the choices they need to be confident in their financial decisions.
LendingTree empowers consumers to shop for financial services the
same way they would shop for airline tickets or hotel stays,
comparing multiple offers from a nationwide network of over 500
partners in one simple search, and can choose the option that best
fits their financial needs. Services include mortgage loans,
mortgage refinances, auto loans, personal loans, business loans,
student loans, insurance, credit cards and more. Through the My
LendingTree platform, consumers receive free credit scores, credit
monitoring and recommendations to improve credit health. My
LendingTree proactively compares consumers' credit accounts against
offers on our network and notifies consumers when there is an
opportunity to save money. In short, LendingTree's purpose is to
help simplify financial decisions for life's meaningful moments
through choice, education and support. LendingTree, LLC is a
subsidiary of LendingTree, Inc. For more information, go to
www.lendingtree.com, dial 800-555-TREE, like our Facebook page
and/or follow us on Twitter @LendingTree
MEDIA CONTACT:
Morgan Lanier
morgan@lendingtreenews.com
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SOURCE LendingTree, Inc.