Thanks for all of your responses!
She is 11 years old. She just started gymnastics 2 years ago; she hasn't been in it since she was 3 or anything like that. It is still new to her.
I think 11 -
http://disboards.com/showthread.php?p=34084190#post34084190
Have you asked if she'd be interested in switching out of competitive gymnastics into recreational gymnastics?
We did ask her about this, as there is a rec option at a nearby town.
However, she does not want to do this because she really enjoys competitions - it's actually her favorite part of gymnastics!
Only you can evaluate if you can actually afford it or not and believe me I know the sacrifice that comes. However I would never tell my dd she couldn't compete because I didn't feel she was doing well enough. If you can't afford it then you can't. It wouldn't matter if she had the potential to make it to the Olympics.......wouldn't give you anymore money. Sit down and list what she is getting out of it verses what it is costing you (ie time, money, energy). Believe me sometimes the energy factor kills me and I so wish she would quit.
Good luck. It is so hard.
I did not mean to imply that the expense was something we could not afford. Actually, on our income, most people would probably say we can't afford it. But DH and I do without other things to make it happen for DD.
I would NEVER tell her she had to quit because she wasn't doing well enough. I was saying that she has lost her motivation, and I can't figure out if she truly enjoys it still to be worth the expense we are putting out.
She says she does, but we see that she has lost the drive to do her best and work at improving as she goes.
She will never go to the olympics, but her coaches say she is talented enough that she could conceivably get a college scolarship when the time comes.
We love watching her compete and enjoy the time going to the meets. I could seriously do without the hair-do that her gym requires for comp's!
We are both 100% behind her, regardless of the cost. We are just wondering how to get that excitement and drive back in her.
I don't have advice as a parent, but I can offer the prespective of a child that was involved in competitve sports at a young age (not gymanstics -- waayy too tall for that.

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I started competitively swimming when I was 5 years old. From 5 to about 10, I won 99.9% of my races, was invited to junior olympics, etc. At 11, I started losing some of my races as I wasn't putting in the effort that others were at that time. Each year after that I slowly started losing more and more -- because I wasn't willing to put in the effort that others in that age range were putting forth (or perhaps I wasn't talented enough, but since I didn't "try" who knows). By 14 I quit swimming competitively all together -- I had lost interest.
Around the same time that I quit swimming, I started playing basketball and volleyball. I ended up earning a full-ride volleyball scholarship for college. I think that the swimming set a good foundation for my competive sports later on and I have no regrets in putting so much of my life in swimming -- nor do I regret quitting at 14 either.
Interestingly, I don't play volleyball anymore either (as an adult). But, I also don't regret that time of my life.
It sounds like she enjoys it but may not be willing to put in the effort that is required at the levels she is now approaching. I would try to back off on the importance of the decision -- she may want to quit but since she has invested so much time in gymnastics doesn't know what she will do without it. Maybe suggest another sport or hobby that she can persue?
Good luck! It sounds like you are great parents just for investing the time (not to mention money) in supporting your daughter. My parents spent endless weekends at pools and gyms supporting my athletic careers and I know how much it means to a kid to have your parents there.
Thanks for offering a different perspective on the matter! And thanks for your kind words also.
We have tried to come up with other activities for her to be involved in, but she does not attend public school, and as a result, she has very limited options.
She says she can't live without gymnastics and does not want to quit.
This is why we are in such a quandry. She does not want to switch or quit, but also does not want to put forth 100% effort.
Whereas this sport is largely individual, her team does count on her to score well in an attempt to win the team overalls.
I don not think she is having troubles as far as the harder level. She can do the skills required, she just doesn't take time to polish them and make them as good as she can. Does that make sense?
I do like your suggestion of backing off on the importance of the decision; for now at least. Maybe a little less pressure about it for a while might help.
Her coaches have even been talking to her because they see the lack of effort as well.
My daughter (9) is in competitive cheer. She admitted one night that memorizing routines was stressing her out. I pulled her out of the competition side of it at the end of the season. She still goes to practice twice a week, but is not currently competing.
Our gym is either competitive, or classes. The classes are way too far behind her skill level to hold her interest, so it's either team or nothing there.
The odd thing is, DD wants to take every opportunity to be in the gym and practicing. She takes backhandspring classes, goes to open gym, private sessions, etc. Everything they offer extra, she's there.
So I have to believe she can't get enough of it.
I just don't know why she has lost her drive to improve her skills and work at things the way she used to.
I guess I was hoping someone had experienced the same thing with their child and could offer up some ways they helped rekindle the spark.