Wallet Watch newsletter: The price of fitting in on Long Island

This week for Wallet Watch, my colleague Victor Ocasio and I took a closer look at why parents on Long Island feel pressure to overspend on their children. Raising kids on Long Island is already expensive.

But many parents told us the real strain comes from everything beyond the basics — travel sports, lessons, parties and extracurriculars that can cost thousands a year.

Victor spoke with one Levittown mother, Amanda Pastore, who said she's raided her retirement savings and sold the family minivan to pay for birthday parties for her young son. 

However, sports stood out as one of the biggest financial pressure points we found from our reporting. Families told us they spend thousands of dollars a year on club teams, private coaching and extra training. They make those investments not necessarily because they expect scholarships, but because they worry their kids will fall behind teammates who are getting more instruction and playing time.

For parents feeling squeezed, there's a way to get out of this trap, mental health professionals said.

Set realistic expectations with your kids about what you can afford.

"The way to have a healthy balance is for kids to understand that money is finite, to understand we can’t always afford something and we’re OK, and still we thrive," said Don Sinkfield, a mental health counselor in Valley Stream.

Read the story here. 

From our readers

Sharon Bendersky on Facebook asks:

Why are Long Island’s car insurance premiums so high even for drivers with clean records?

 

The short answer: More accidents, more claims, more costs.

Even safe drivers on Long Island can face high premiums because insurers price policies partly based on regional risk — and Long Island is an expensive place to insure cars, experts said.

Long Island’s dense population, heavily congested roads and large number of commuters traveling to New York City all contribute to higher accident rates, said Beth Swanson, an insurance analyst at Zebra, an insurance comparison company.

The Long Island Expressway alone averages thousands of crashes a year, she said, with bumper-to-bumper traffic contributing to a high number of rear-end collisions.

Higher labor, healthcare and property costs on Long Island also drive up repair bills and insurance claims. Swanson noted that high property taxes can increase overhead costs for repair shops, pushing labor and parts prices higher.

Analysts also pointed to fraud and lawsuits tied to New York’s no-fault insurance system, where drivers’ own insurers cover their medical costs regardless of who caused a crash. Swanson said New York is also considered a riskier insurance market because many drivers carry only minimum coverage, causing "premiums to skyrocket after a major accident to cover the shortfall."

A few ways drivers may be able to lower rates:

• Take a defensive driving course.
• Shop around regularly for quotes.
• Ask about low-mileage discounts.
• Look into safe-driver tracking programs.

Have a question you'd like to submit? Confused by a bill? Spotted a price hike? Ask our team and we might answer it in the next edition. Email walletwatch@newsday.com or click here.