Are Kids' Sports Costs Straining Your Budget?

I'm a big believer in the benefits of sports for kids. It's fun, it keeps them active, and it teaches them teamwork and leadership skills. Plus, there's nothing like seeing your child put on that little uniform and taking pictures to send to your family and friends. It's an intimate connection to your kids' lives, especially if, like me, you played sports yourself.

At the same time, you could find yourself in a situation where you look at your bank statement at the end of the season and say, "What did I do?" If you have a couple of kids, it could be even more of a financial strain. As parents we need to manage the high costs of kids' sports wisely from the start—because the financial pressure only grows as they do. So, before you get in too deep or if you're already feeling stretched, here are some ways to keep costs under control.

You want the best for your kids, but you don't want to jeopardize your own financial situation. Before you funnel potentially thousands of dollars into youth sports fees, make certain you:

• Maximize retirement savings. Contribute to your employer-sponsored retirement plan to at least get the full company match. Save in an IRA if you can, and consider contributing to a Health Savings Account if you're eligible.
• Pay down debt. Focus especially on non-deductible, high-interest debt like credit cards and personal loans—anything with an interest rate over 8%. Prioritize paying off high-interest debt with an interest rate in the high teens or above.
• Save for emergencies. Build an emergency fund to cover three-to-six months' worth of essential living expenses. Make a list of how much you need to cover basic necessities. Then decide to keep that amount somewhere relatively liquid and safe, like a savings or money market account.

Also strategize on how to save for multiple financial goals. Chances are, funding your kids' sports is only one of many goals. What about saving for college or saving for your retirement? To help make sure paying for today's sports doesn't derail your future goals, make a list of all the things you're saving for and how much you'll need for each. Then prioritize your list in terms of what's most important to you and your family.

After establishing your overall financial strategy, you can include kids' sports as a line item in your spending plan. Be realistic about how much you'll need. Just like when you make any major purchase, do your homework. Talk to other parents, ask coaches, and go to club sports' websites so you know what you're getting into. Decide what you can comfortably handle and what trade-offs you may have to make so your kids can participate.

Then look for ways to streamline expenses. Here are some ideas:

• Look for local leagues. These are generally less costly than traveling teams. Especially when your kids are younger, local leagues and school-sponsored teams are a great way to expose them to a variety of sports.
• Buy used equipment. Be on the lookout for sport swaps in your community. Or explore stores that sell used sports equipment. As you know, kids outgrow things fast!
• Volunteer to coach. If you have the skills and the desire, coaching is a great way to offset coaching fees while providing opportunities for your own budding athlete as well as other kids in your community.
• Organize small group coaching sessions. Want to give your kids some specialized help but can't afford private lessons? Pair up with other parents for small group coaching sessions, maybe once a week. Splitting the cost will make it more doable, and your kids may even get more out of a group lesson.

There's no harm in including your child in the conversation. Kids need to understand that sports cost money. Give them options. Based on what we can manage financially, would you rather do this or that? I had plans for my son to go to two different sports camps this summer, each focusing on a separate sport. Another, less-costly choice, was a day camp that offered multiple sports. I asked him what he'd rather do, and guess which one he chose? The multiple sports camp! It will end up costing me less, and he's happier being part of the decision.

Sports are a great way for you to engage with your children and support their activities. But if it's too much of a financial burden, that can take away from what you all want out of it. Kids can sense if it's a financial strain. There's an undercurrent. Then nobody's having fun. But with some creative strategizing and honest conversations, both you and your kids can benefit from everything playing sports has to offer.