Less Sport, Less Music, Less Art For UK Children As Recession Takes Its Toll

• £50 Billion A Year Spend On Kid’s Activities To Be Slashed

• Britain’s Olympic Future In Jeopardy

• One In Three Parents Plan To Reduce The Amount Spent On Children’s Extra-Curricular Activities, Including Sports, Music And School Trips

New research[1] released by Capital One reveals that the £50 billion per year parents spend on children’s extra-curricular activities could be set to fall dramatically, as a third of all UK parents look to cut expenditure on their children as a chance to save money.

One in three (33%) parents in the UK are planning to reduce the amount they spend on activities for their children, including extra-curricular academic classes, sports clubs, holidays and birthday celebrations, to help cope with tightening household budgets.

Children in younger families are set to bear the brunt of these cutbacks, as 52% of parents aged 18 – 34 plan to spend less over the coming year on their child’s activities.

Around 1.3 million UK parents will spend less on sporting clubs to help save money and 1.1 million will cut back on music, art and cultural extra-curricular clubs and classes. 1.2 million parents also plan to spend less this year on school trips.

The research suggests that at present, parents in the UK collectively spend £50 billion on children’s activities each year – from school trips and sports clubs to extra tuition. However, the reduced spend could put in jeopardy hopes of finding the next great Olympian, ballerina or artist if parents cannot afford to fund their children’s ambitions.

The findings were revealed in new research into consumer spending patterns over the next 12 months to support Capital One’s Credit Made Clearer financial education initiative and raise concerns over the impact this could have on children’s sporting, academic and cultural involvement.

Michael Woodburn, Chief Marketing Officer, Capital One said: “With very few families in the UK set to escape the impact of tightening household budgets over the coming year, financial education is now more important than ever, which is where our Credit Made Clearer videos comes in.

“If parents are finding themselves in a position that means they have to reduce the amount they spend on their children then we’d encourage them to first ensure that they are managing their money in the most effective way. This could involve anything from taking advantage of discounts and cashback offers to reviewing the way they use credit – it all adds up.”

Cutbacks on children’s activity spending over the next 12 months

Source: Capital One

Capital One asked parents who were planning to make financial cutbacks over the coming year whether these reductions would impact equally on all members of the family and almost one in ten (8%) said their children would be the ones most affected. Almost half (45%)of parents felt that they would be the ones to bear the brunt of the cutbacks, while 47% said all members of the family would be equally affected.

Capital One’s Credit Made Clearer initiative aims to help consumers improve their financial management through a series of short animated films offering practical financial educational tips. Available via facebook.com/capitaloneuk, members of the public can access quick myth busting films on a range of topics including how to use credit to what to do if you are struggling to meet repayments.

Credit Made Clearer top tips for money saving:

• When organising activities for children, take advantage of discount voucher websites such as ‘Groupon’ or ‘Quidco’ as you can often save as much as 70% on meals and days out

• Make the most of free activities that are appropriate for all ages, from museums and galleries to town centre festivals

• If you use a credit card make sure you are rewarded for your spending by making the most of cash back offers and other reward schemes

• Be smart with how you use your credit card, be aware that you may have different rates of interest for purchases, balance transfers and cash withdrawals. Interest is calculated as a percentage on the amount you borrow so the longer it takes for you to pay off the amount, the more interest you will end up paying

• The most convenient supermarket is not always the most cost effective. It often pays to shop around and take advantage of reward points offered for loyalty

Notes to editors

[1] Research conducted by Opinium Research amongst 2010 UK adults 2012.

All figures are based on the percentage of survey respondents answering this option. The survey is representative of UK adults aged 18+. ONS population figures show 49,924,000 adults in the UK in 2012 therefore all figures are based on percentages of this figure.

For further information contact:
Katie Pugh / Ewan Robertson
Citigate Dewe Rogerson
0207 282 2914
AllCDRCapitalOne@citigatedr.co.uk

Or

Becky Stevens
Capital One
Tel: 0115 843 6484

About Capital One
A Fortune 500 company, Capital One Financial Corporation trades on the New York Stock Exchange and is included in the S&P 100 index. Headquartered in McLean, VA, Capital One is a diversified financial services company whose principal subsidiaries, Capital One, N.A., Capital One Bank (USA), N.A., and Capital One Auto Finance, Inc., offer a broad spectrum of financial products and services to consumers, small businesses and commercial clients.

In 1996 Capital One launched its first overseas operation in the UK offering credit cards and savings products to UK customers. The UK headquarters and operations centre for Capital One (Europe) plc is located in Nottingham. Registered Office: Trent House, Station Street, Nottingham, NG2 3HX