5 keys to not going broke while chasing your child’s dreams
I hate to break it to you, but your child is probably not going to make it to the NHL.
That’s ok. Neither is mine.
And that’s a good thing. Because when I hear about how much money parents are spending on strength coaches, skills coaches and tournament travel, I thank my genes that he wasn’t blessed with the skills of Connor McDavid.
Because you know how much money I would have to spend to get him there?
I probably don’t need to say this, but hockey is expensive. Yeah, all sports are ridiculously expensive. But hockey is next level.
How much did you spend on hockey last year? Do you even know?
Would it surprise you to learn that most families are spending $20,000 a year on hockey? And that’s just for one kid.
It makes sense. You’ve got to buy the equipment, which they usually grow out of by the end of the season. And a pair of sticks. There’s team fees. League fees. Tournament fees. Then there’s the skills coaches. And strength trainers. And exhibition games. And swag.
Which is why more and more parents are sinking themselves into debt under the false pretense that one day they will be able to recoup on their investment.
Think again.
In fact, you have a better chance of winning the lottery than playing a game in the NHL. Remember that the next time you are watching your son or daughter play — and are thinking to yourself that an extra session with a skills coach could be the difference between him becoming the next McDavid. Given the odds, you might actually be better off buying an extra lotto ticket. But that doesn’t mean they have to stop playing Triple-A or hang up the skates.
All it means, according to financial expert Kent Manderville, is that you have to treat the experience like what it is: an activity — not an investment.
Manderville knows what he’s talking about. While he played more than 700 games in the NHL, mostly with the Maple Leafs, he has since transitioned to a career in finance, where he now helps pro athletes manage their money as part of IP Private Wealth’s Hockey Family Office.
More importantly, he’s a hockey dad who has raised two hockey-playing kids.
Here are Manderville’s “5 Keys to Not Going Broke While Chasing Your Child’s Dreams”
Begin With The End in Mind
“This is not your retirement plan,” says Manderville. “This is not an investment. There is no ROI. The numbers are stacked against any kid starting hockey. Remember that. This is an activity. As such, if the activity is putting you into debt, then you need to think about playing another activity or playing at a lower level.”
Track All Household Expenses
“It sounds obvious, but how many parents are literally tracking every single penny they are spending when it comes to the hockey season. It’s not just the registration and equipment costs. There’s also the track suit. And then you’re staying at the team hotel for travel. And there’s the time you thought you were going for two nights, but now there’s games on the Friday at 8am, so you’re going for three games. It all adds up. As far as the dollar figure, as long as you’re fine with that’s all that matters. But don’t keep blindly paying debt. That’s a horrible path to go down.”
Do an End-of-Year Assessment
“At the end of every year, I think it’s important to sit down as a couple and ask yourself: are we comfortable doing this and are we where we want to be as a family and where we went to spend our after-tax dollars? If it’s between going on a nice family vacation or Johnny or Suzy playing competitive hockey, that really becomes a values-based decision. Prioritize. There’s no hard or fast rule. People have to make that determination on their own. But really, it’s where do you want your after-tax dollars to go? When we say it costs $10,000 for hockey, that’s on a net basis. That’s after tax. Depending on your tax bracket, you have to make $12- to $15,000 to make $10,000. So it becomes super-expensive. Aligning your expenses with your intentions and making sure you’re ok with it.”
Ask the Hard Questions
“Make sure the team has a treasurer who is looking after the money and where it’s going. Also, make sure the treasurer is not the head coach, because that can open up a whole new set of problems. I coached a number of years. You have to enter tournaments before the year started and you might not know your whole team yet. But we would have a proposed budget. And while it can change, it’s ok as a parent to question it and question why you’re spending more than you might be comfortable spending. The problem is some parents do not want to be the parent who raises his hand and rocking the boat. You have to get over that fear. It’s your money. Know where it’s going.
Be Prepared to Walk Away
“Read the Red Flags. And be prepared to stop the conveyor belt. I remember when my son was playing Triple-A, he played in a tournament in South Bend, Indiana and we bused down there. We were like, ‘What are we doing here?’ I think pulling back for sure and going to a lower level has to be an option, because it is less travel and less expenses. The problem is that as a parent you want the best for your kid. You may not have had the opportunity to do this, so you think I’m going to give my kid the opportunity I never had. And so it’s the parent who wants it more than the kid.
“My daughter stopped playing hockey at 12. In retrospect, it was nice to have that free time as a family. With my son, he kept going on and he’s done well, he got a scholarship to the U.S., but you still think was that worth it? As a family, just be mindful and don’t be afraid to pull things back if needed. We did pull him back to double-A one year.”
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