As summer winds down and the weather turns cooler, Americans gear up for fall-favorite spiced sips, Halloween, and the start of football season.
But, with inflation figures ticking up for the second month in a row (the latest being 3.7%), will game-day watchers need to cut back on their spending habits?
That’s the question a new report from Empower poses, which found that close to one-third of over 2,000 football fans (27%) splurge in the last half of the year to support their chosen college or professional team. Americans say the spending is worth it—as 33% agree that money expended on sports, including football, is well-spent.
Sports fans were also likelier to prefer drafting their fantasy football teams over choosing stocks, and only 37% said they were confident in managing their financial portfolio.
Still, it’s possible for clients to enjoy the festivities behind game-day (even if that’s Sunday, Monday, and Thursday nights), while saving for those short- and long-term savings goals, says Keith Jones, a financial professional at Empower.
First, Jones advises clients to avoid skimping on any high-interest debt accrued, and to focus on saving towards emergencies. “When reviewing finances, [consumers] may want to consider prioritizing paying down high-interest debt and having an adequate emergency fund for a rainy day,” Jones said.
Next, plan for a budget. A good place to start is with the 50-30-20 rule, Jones adds, which breaks down spending into three buckets that includes daily and monthly costs, retirement and emergency savings accounts, and discretionary spending that could involve stadium tickets (depending on the cost!), a football party, or a team jersey.
“50% is allocated towards needs like your mortgage or rent, grocery bills and other monthly expenses; 20% is allocated toward savings, like a 401(k), individual retirement account (IRA), or emergency fund, and the remaining 30% is designated as ‘fun money,’ or discretionary spending,” he said.
Lastly, huddling up with an advisor can keep consumers from fumbling not just their budgets, but their near-term and retirement savings as well. Jones adds, “Working with a financial advisor can go a long way in helping [consumers] feel more confident in decisionmaking.”
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
