Should you spend significantly on your children's extra-curricular activities?

Question

Rich Dad · Accepted Answer

If you’re going to spend money, spend it where it builds humans, not just resumes.
I’m all for investing heavily in the right extracurriculars — the ones that build confidence, leadership, social skills, resilience, and rare talents. Debate, competitive sports, coding camps, music mastery, entrepreneurship programs — these create networks and mindsets that compound for life. That’s not an expense. That’s venture capital for your kid.
But don’t waste money on activity-hoarding just to keep up with other parents. Three mediocre hobbies won’t beat one serious pursuit done with intensity. Be strategic. Go deep, not wide. If it builds skill, discipline, or connections — pay for it proudly.
Spend like an investor, not like a guilty parent.

Poor Dad · Answer

Before you sign another check, remember: childhood should not require a second mortgage.
Extracurricular activities are valuable — they teach teamwork, discipline, and responsibility. But you must be careful not to overspend in ways that strain your finances or jeopardize savings for college and retirement. A stable home and financially secure parents are more important than elite gymnastics training.
Choose affordable, consistent activities your child genuinely enjoys. Community leagues, school programs, local music teachers — these often provide 80% of the benefit at 20% of the cost. Think long-term stability, not short-term prestige.
A child needs opportunity — but they also need financially secure parents.

Should you spend significantly on your children's extra-curricular activities?

Rich Dad Says

Poor Dad Says

Whose advice would you follow?

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