First, I’ll ask the question:
I ask this becuase of this short article I read in the January issue of Money. This quote really stuck out to me:
“In the early years, lessons cost about $20,000 annually. By 2000 my [now ex-] husband and I were spending $40,000-plus a year on coaching and travel. Expenses climbed as they qualified for more international competitions. We gave up meals out, vacations, redecorating our house. We drove Volvos with six digits of miles. At one point we owed $80,000 on credit cards. But we were happy because our kids got to do what they loved.”
“…And in the end, our quarter of a million dollars in expenses paid off. Our kids hit the jackpot. Marten got a full scholarship to Penn State, and Mariel to Notre Dame. Merrick is still in high school and fences competitively. Now my ex and I, having since paid off our debts, can sit back and enjoy our children’s achievement. Perhaps one of the biggest thrills was watching Mariel win a gold medal in the 2004 Athens Olympics. But honestly, we look at all our kids as champions.”
I was thinking $2,000 per year was excessive! LOL! I can’t imagine spending $20,000 per year on my kids’ hobbies. Of course, the article doesn’t say what kind of income this couple had but considering the fact that they had $80,000 in credit card debt, they were living beyond their means.
One other thing the article doesn’t point out is whether or not the couple funded their 401(k)s over the years. My guess is no but I have no proof either way.
What do you guys think about this?