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Indian parents believe that investing in extracurricular activities for kids can lead to greater future rewards for them. Learn smart strategies a parent can use to reduce the cost of a child’s extracurricular activities.
How much should parents spend on extracurricular activities for kids? (Image: Getty Images)
Mumbai: An eye-opening survey conducted last year by Kantar, a market research company based in London, for Amazon’s Alexa, highlighted that over 90 per cent of parents interviewed believed children can become less active if exposed to prolonged screen time. The survey included over 750 parents in India.
Today, Indian parents believe that spending money on extracurricular activities for their children can lead to larger future rewards. However, the competitive nature of these activities can result in high debts for many parents, depending on the costs associated with various extracurricular activities.
Extracurricular activities for children
Extracurricular activities for children of different age groups may include swimming, table tennis, phonics, music lessons, arts and crafts, dance lessons, learning a new language, martial arts, robotics, and coding. The list can expand based on popularity.
So, how much should parents spend on extracurricular activities for their children?
The cost of extracurricular activities shouldn’t lead any parent into significant debt over the years. The cost of education itself is the biggest expense for any parent, necessitating extra planning and budgeting for extracurricular activities. How much one should spend on their children’s extracurricular activities depends on their level of interest, the kind of activities they choose, their location, their age, and their overall family income. It’s essential to understand that these figures can vary significantly depending on individual circumstances and preferences. Families with lower incomes may spend less on extracurricular activities, while families with higher incomes or greater resources may invest more in their children’s enrichment activities.
How to reduce cost of extracurricular activities?
Today, private and government schools offer various extracurricular activities, including martial arts, music lessons, robotics, and swimming. Parents have the flexibility to enrol their children in activities of their choice. This allows parents to support their children’s interests and helps them save money compared to enrolling them in private institutions for the same activities.
For instance, private swimming coaching centres can charge as much as Rs 10,000 to Rs 25,000 for 20 days of swimming lessons. Parents with a limited budget can consider local swimming facilities provided by the government, which often offer the same services at half the price or sometimes even for free. Today, in India, various government-based activity centres are aimed at children’s growth and education. They can be budget-friendly while providing equally effective learning experiences.
What should parents do to manage their financial plans?
Not saving enough money is the biggest mistake parents make; it is imperative to have separate investment planning to cover a child’s extracurricular activities. First and foremost, parents need to review their life insurance policies and increase their coverage as required. They must also start saving for healthcare costs, education, marriage, and emergency funds.
It is prudent to have a balanced investment portfolio with financial products such as mutual funds, government schemes, gold, and other options to meet the various life-stage needs of children. One should also manage expenses and plan investments judiciously.
Extracurricular activities should be enjoyable rather than burdensome for children, and they should not be over-enrolled beyond their capacity. Remember, their primary focus should remain on their main studies.
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