Do you see your child as the next Neeraj Chopra or PV Sindhu?. Find out how to make financial plans for your kids’ sports career and realize your dream.
Indian children have expanded their interests outside cricket over the years, owing to increased exposure to foreign athletic events. The recent medal haul at the Tokyo Olympics is sure to feed the fire even further. Football, athletics, boxing, rifle-shooting, chess; children are participating in a range of sports. Thankfully, many parents want to raise the next Mirabai Chanu, Neeraj Chopra, or PV Sindhu. You should make financial plans for your kids’ sports career as soon as you or your child’s school coaches notice the talent.
Founder of Optima Money Managers, Pankaj Mathpal, states, “If your child is, say, six years old and you have just discovered her love and talent, you still have 5-6 years before she hits the critical crossroads in the sport of her choosing. You can invest in large-cap mutual funds or blue-chip companies in such instances. Long-term goal-oriented planning will be beneficial when your child is between the ages of 14 and 19, when he or she is likely to travel across the country on a regular basis.The better the quality of sporting equipment required, the higher the costs.”
Deepthi Bopaiah, who is a banker-turned sports administrator and serves as Executive Director, GoSports Foundation. also recommends SIPs in mutual funds to build an adequate corpus.
According to Deepthi, “today’s parents, at least in the urban setting, are supportive and want their children to pursue their passion.They are open to their children pursuing careers in various sports.”
You must account for both fixed and recurring expenses, such as the cost of equipment (javelin, badminton racquet, gun, and so on). Deepthi explains that if you are a member of an academy or club, you will have access to the equipment, or you can rent it. At the junior level, the recurring expenses for any sport could amount to Rs 15,000 per month, including the trainer’s fee, dietary charges, and so on.
You will also have to manage a significant portion of the expenses till your child begins playing at the national level. You must consider not only coaching fees, but also athletic equipment, tournament participation fees, travel expenditures, and the cost of regular nutritional supplements, if necessary.
The most challenging component is predicting the expenses you will require in a few years.
In the case of higher education, you can now use the current price structure at colleges of your choosing when projecting future expenses and creating a financial plan.
However, Founder of FinFix Research and Analytics, Prableen Bajpai, says, predicting the future cost of sports-related expenses is rather complex and you should have a reasonable assessment of the expenditures associated with the years of training.
Bajpai says, “This is especially important because, in addition to school fees, parents must budget for coaching, travel expenditures for competitions, equipment, and other sport-related expenses. The costs may vary based on the type of sport chosen.”
Athletic training, for example, necessitates the purchase of protein supplements and expensive sports shoes, among other things.
Athletics coach Ajit Kulkarni, Founder of Aim Sports Foundation, claims, “The entire annual expenses for children aged 6 to 12 years could exceed Rs 1 lakh. Monthly coaching fees could range between Rs 1,500 and Rs 5,000. They will also want at least three to four pairs of sports shoes, which cost roughly Rs 3,000-4,000 each pair. Protein supplements might cost up to Rs 5,000 per month.”
Later on, you can pursue scholarships and sponsorships as well. Adjust your budget to account for short-term expenses. Because the costs are lower at the entrance level, the struggle comes only when the youngster is on the verge of taking up the sport professionally.
According to Pankaj Mathpal, “once their child shows promise, parents should receive an estimate of future fees from the coaching centre. If the youngster is exceptionally gifted, they should consider hiring a personal coach and budget for the associated costs.”
Aside from sports training costs, you will also need to set aside money for medical treatment in the event of an injury.
We hope this article helps you make financial plans for your kids’ sports career and realize your dream of turning them into a Neeraj Chopra or PV Sindhu.