Over the past few years in my meetings with clients and reviewing their income verse their spending ratios, I discovered what I think is an underground economic movement that is stimulating and sustaining our economy by taking advantage of these low mortgage rates.
The drivers of this underground movement are the parents of kids in traveling club sports.
They are buying gas, Subway sandwiches, uniforms, pop-up shades, making hotel reservations, purchasing plane ticket, and paying for rental cars.
If the sport is soccer, baseball or water-polo you can expect 15 to 20 families booking hotel reservations and dining out for a minimum of 2 nights at a cost of $600 to $800 dollars with trips to SeaWorld or Wild Animal Park not included.
Multiply this with the thousands of families attending these tournaments which are going on across the state each and every weekend, and it’s easy to see how the numbers add-up in terms of sales-tax collected, and goods sold. These numbers ultimately translate into keeping businesses open and jobs in place thus sustaining our economy.
In some cases, it’s almost like they make-up ways to spend money, driving from Redondo Beach to Pleasanton (Northern California) for a weekend college showcase just to play a team that is based out of Palos Verdes a city right next door them.
These are the people that seem to benefit most from an interest rate reduction on their home loan as they make up a large portion of the population that keeps our economy moving.
Saving $200 to $500 bucks on their mortgage payment every month means freeing up needed cash to spend on their kid’s sports rather than struggling to make this happen, and sacrificing their savings or purchasing that new car.
The one thing that runs true for all these families is putting their kids needs and desires above their own, so they pay for that extra out of town tournament and do without in other areas such as savings, investing, or that new car which also keeps more people employed.
So the next time you see that kid with the sports uniform in line at Subway, be sure to thank their parents for supporting our economy.
If you find this info helpful, funny or interesting, and want to hear more on this topic please let me know by commenting on this blog, as well as, sharing it with friends, family, and co-workers