Summer Camp vs. Vacation vs. Investing: The $3,500 Question for Parents
The average summer day camp costs nearly $3,500 for eight weeks, according to data from the American Camp Association. If you have multiple children or a longer summer break, costs may approach $5,000 or more. Sleep-away camp, of course, costs even more. If you have young children, you may be wondering if it’s worth the money to put them in summer camp.
Many parents have no choice but to rely on summer camp to keep their children occupied and safe while they work. But if you can shift your working hours, work from home throughout the summer, or even rely on family or friends to watch your kids, you could save thousands of dollars.
I'm a Self-Made Millionaire: It's a Waste of Money To Buy These 3 Things on Vacation
Read More: 11 Subtly Genius Things All Wealthy People Do With Their Money — That You Should Do, Too
The trade-off is that you, as their parent, could end up playing camp counselor, taxi service and entertainment committee all summer. It can be a lot to manage. Add in a full-time job or side gigs, and you could end the summer feeling burnt out instead of relaxed, refreshed and ready for fall.
Cost vs. Value
“From a financial planning standpoint, I encourage parents to think beyond the price tag and instead evaluate the overall value,” said Kyle Mostransky, founder and CEO of financial services firm Mostransky and Associates.
As a father of four children, Mostransky has had to consider these decisions for his family, as well as steer clients toward the right choices for their own families. Remembering his days growing up in the 1980s and ‘90s, Mostransky recalled riding bikes until the streetlights came on. Summer camp often meant an affordable community program kids would attend for a few hours a day.
“Today’s families are making decisions in a different environment,” he said. “If camp allows parents to continue working, reduces the need for alternative childcare, or simply provides peace-of-mind knowing their children are in a safe, engaging environment, those benefits should be part of the equation. Sometimes the biggest return isn't financial, it's having children who are active, learning, unplugged from screens and creating experiences they'll remember for years while parents are able to focus on work and other responsibilities without constant worry.”
Still, it’s worth considering the other uses for $3,500 or more over the course of the summer.
What Else You Could Do With $3,500+
Some families forego camp and rearrange their schedules to spend that money on other things, whether it’s building for the future or enjoying precious summer weeks together.
“Summer camp isn't an all-or-nothing proposition,” Mostransky said. “Many families successfully combine community recreation programs, YMCA camps, specialty camps, vacations, grandparents and time at home to create a summer that aligns with both their budget and their values.”
Trip to Europe
Camp can be enriching, educational and help kids push outside their comfort zones. Travel can also do these things. A 10-day trip to Europe can cost as little as $1,500 to $2,200 per person, according to the Global Holidays website. That means a family of four with summer camp payments for two kids could use that $7,000 on a world-travel experience.
Walt Disney World Vacation
A trip to Walt Disney World in Florida starts at around $6,500 for a family of four. That puts the price tag in the same ballpark as day camp for two kids. Either experience will create memories for a lifetime, but still leaves the question of how to fill the rest of summer vacation.
Invest in the S&P 500
If you have alternative childcare options and $3,500 sitting in the bank, you could invest it and potentially more than double your money after 10 years. That could help pay your child’s college or boost your retirement savings.
According to an investment calculator from Capital Group, $3,500 invested with an annual rate of return of 8% would grow to $7,556 after 10 years.
Summer Camp: Priceless?
While the ROI on investing that money seems enticing, Mostransky emphasized that budgeting for summer camp reflects more than just numbers in a spreadsheet. Even if you don’t need childcare during the summer months, camp offers other benefits.
“Summer camp can provide tremendous value by helping children build confidence, develop independence, strengthen social skills, discover new interests and create friendships that often last well beyond the summer,” Mostransky said.
He continued, “For many families, it's an investment in their children's personal growth and in the overall balance of family life. Financial planning isn't about finding the most expensive option or the least expensive one, it's about making intentional decisions that support your family's priorities.”
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion: