Why ‘Mompreneurs’ are essential to their communities
(BPT) - The number of business-savvy mothers blazing the trail as entrepreneurs is at a record high. “Mompreneurs” are transforming the business landscape, not just for themselves, but also for future generations. According to Wells Fargo, growth in the number of female business owners has outpaced the market in recent years, with women-owned companies representing 39% of all businesses.
What could be a driver of this shift? Legacy. One-third of female business owners surveyed in recent Kiddie Academy® research cite their primary motivation for starting a business as a desire to leave a lasting impact for their children and grandchildren. For these women, entrepreneurship isn’t just a path to work-life balance - it’s an act of generational empowerment that’s essential to their communities.
Mompreneurs fill unique gaps in the market because they often start businesses based on personal experiences.
This results in the creation of products and services that effectively solve problems for families and local communities. They’re showing their children what’s possible when you take a personal passion or value and turn it into a business.
According to the same Kiddie Academy survey, 90% of respondents believe it’s important for children to see more female business owners in their communities. Female representation can change what children believe is achievable as they form ideas about their own potential.
Children raised in “mompreneurial” households grow up with firsthand exposure to the highs and lows of business, the dedication it takes to launch and grow an idea and the courage it takes to follow one’s dreams. For daughters, it can plant the seeds of self-confidence. For sons, it can shape respect for women as leaders and equals in the workforce.
“I know that when my children see me going to work each day, I’m making a profound impact on their perception of women business owners,” said Emily Zaghi, franchise owner of three Kiddie Academy locations in New York and mother of three young children. “Beyond the legacy I’m building for my family, I also have so much more freedom to be part of my children’s lives.”
Nearly 70% of mothers say flexibility to spend more time with family is a major reason for starting their business, according to Wells Fargo. With that, mompreneurs have created support ecosystems for themselves and each other, redefining what work-life balance looks like. More and more, moms are designing businesses that prioritize flexibility and purpose.
When a mother becomes an entrepreneur, she’s not just building a business, she’s building a legacy - the ripple effects of which can last for generations.
FINANCE MATTERS
What parents can do to save more for college
Raising a child is no small task. Though it’s no surprise that parenting requires a substantial investment of time and energy, the financial cost of raising a child might raise more than a few eyebrows. According to the SmartAssetTM 2024 Study, the median annual cost to raise a child in the United States in 2024 is $22,850, and that figure is considerably higher in many states.
Commitment and discipline are vital to getting across the financial finish line when raising a child, and that includes finding a way to finance a college education. Data from the College Board, a nonprofit that studies trends in the cost of a college education, indicates the cost of tuition and fees varies widely depending on the type of institution. Tuition and fees at an in-state four-year public school cost a little more than $11,000 during the 2023-24 school year, while it was nearly four times as much ($41,540) at a private nonprofit four-year institution.
Financing a child’s college education can seem like a daunting task. How-
ever, an array of strategies can help parents save more for college.
■ Take advantage of a 529 plan. A 529 education savings plan is an increasingly popular way to save for college.
The Education Savings Programs at Bank of America reports that 529 plan assets increased from $88.5 billion in 2008 to more than $446 billion in 2023. A 529 plan is a tax-advantaged investment program administered by a state. When funds withdrawn from the plan are used for qualified expenses, such as tuition costs, then the earnings are free from federal income tax obligations. There are distinctions between 529 prepaid tuition programs and 529 savings programs, so parents are urged to discuss those differences with a financial advisor so they can choose the best plan for their situation.
■ Redirect extra income to a college savings plan. Parents may have “extra” sources of income that can be used to fund college savings. Annual bonuses, money distributed through state-sponsored property tax relief programs and
even money freed up when kids graduate from daycare and into elementary school can be redirected into college savings plans. Redirected daycare expenses may be particularly savvy, as parents know the cost of daycare is considerable. In fact, a recent report from Child Care Aware of America indicated the cost to place two children in child care exceeded annual typical mortgage payments in 45 states. Once kids are out of daycare, parents can redirect some or all the money they had been spending on child care into college savings plans.
■ Don’t go it alone. A 2023 survey from the College Savings Foundation found that 45 percent of parents would request that family and friends contribute to a child’s 529 plan in lieu of the standard gifts given to children for their birthday, special events like graduation or during the holiday season. This practical yet less traditional approach can pad college savings plans by a considerable amount over the years, and close relatives might be more than happy to
help parents fund a better education for their youngsters.
College is a costly investment, but parents can look to a handful of strategies to help defray tuition costs. MM24C470
An app shared by you and your teen to easily transfer money, control spending, and
3 simple ways to get back in creditors’ good graces
A robust credit rating is a key component of a strong financial foundation. There’s a reason consumers’ credit histories are important to landlords, car dealerships and mortgage lenders. Adults who can demonstrate a track record of sound financial decision-making and responsible money management are seen as safer bets by landlords and lenders than those who have shaky payment histories.
Young adults may not recognize the significance of a strong credit rating until their financial reputations have already taken a hit. Indeed, the Urban Institute reported in late 2024 that 16 percent of young adults between the ages of 18 and 24 with a credit record had debt in collections. Such individuals and older adults who have struggled to make ends meet without taking on debt may one day aspire to own a home or secure a favorable auto loan, and each goal is more difficult for consumers with poor credit ratings to achieve if they cannot restore their reputation in the eyes of prospective creditors. Thankfully, consumers can take three simple steps to rebuild their credit.
1. Start paying on time. One of the fastest ways to build debt is to skip or miss payments on consumer debts like credit cards. When that happens, consumers must pay percentage-based interest charges, which can be especially high on credit cards. When borrowers don’t pay on time, relatively small debts can quickly balloon, costing consumers sizable amounts of money and threatening their financial reputations. In addition, the financial experts at NerdWallet point out that late payments can stay on a credit report for more than seven years, which underscores the significance of paying bills on time each month.
2. Utilize as little credit as possible. Credit utilization ratio is one of the variables reporting agencies like Experian use to determine consumers’ credit ratings. Overutilization of credit adversely affects a credit score, so consumers with poor credit histories are urged to avoid using credit cards when they have funds available in their savings or checking accounts. Consumers now have readily available access to information that determines their credit
scores, and that includes their credit utilization ratio. Monitor that ratio and make a concerted effort to keep it low. Data from Experian gathered in the third quarter of 2022 revealed that the average utilization ratio among consumers whose credit scores were considered excellent was 6.5 percent, while those whose scores were considered fair had a ratio of 56.1 percent. Individuals whose scores were considered poor (between 300 and 579) had an average utilization ratio of 82.1 percent. The disparity in these ratios underscores their significance in relation to building a strong financial reputation.
3. Apply for a secured credit card. NerdWallet notes that secured credit cards can be the right vehicles for individuals who need to start over in relation to their credit histories. The credit reporting agency Equifax notes secured credit cards require cash deposits that are used to insure purchases made on credit. Secured credit cards are ideal for borrowers who have been deemed high-risk due to past mistakes. Payment histories on secured credit cards can be recorded
and shared with reporting agencies, which makes them a valuable asset for individuals who need to demonstrate an ability to pay bills on time.
Consumers can consider these three strategies and others as they seek to rebuild their credit and get back in the good graces of lenders. TF253701
FINANCE MATTERS
What can renters do to secure their financial futures?
Renting an apartment or a home is convenient for people just starting out in life who may not have ample savings or a high enough credit score to secure a mortgage. Renting also may be necessary for individuals who have been priced out of a real estate market that has remained high over the last several years.
Though conventional wisdom may suggest renting is a poor long-term investment, there are certain benefits to renting. In addition, renters can look to various strategies to solidify their financial futures.
■ Grow your credit score. Renters can ask a landlord to use a resource like Experian’s RentBureau to report their payment timeliness. A positive rental history that is reported can help renters improve their credit scores. A landlord needs to be signed up with a rental payment service that works with Experian for this data to be posted. In addition to this, renters should make sure to pay off credit card balances in full each month and make loan payments on
time, which can positively affect their credit rating.
■ Build an emergency fund. Establish a fund that contains at least three to six months’ worth of living expenses to provide a safety net in case of unexpected events. This may help renters avoid debt that can take years to pay off.
■ Contribute to a retirement account. Put a portion of money toward a 401(k) or an IRA even if you are renting. Find out if your employer will match contributions. Retirement accounts with sizable balances can provide a safety net whether you rent or own your home.
■ Stay apprised of local real estate trends. Monitor current market conditions and use that knowledge to negotiate lower lease payments if the market suggests you’re overpaying. If a landlord is unwilling to negotiate, consider moving at the end of your current lease.
Renters can take steps to secure their financial futures even if they never end up buying a home of their own.
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