“It’s clear that, more than ever, parents need help paying for child care costs,” said Sara Mauskopf, CEO and co-founder of Winnie, the popular website and app that provides users with detailed information on local daycare centers and preschools.
POWAY, Calif. (PRWEB)
September 09, 2020
Founded to address a critical and neglected need to fund child care and early childhood education costs for families, Jump Start Finance (JSF) has announced the official launch of its KidVantage loan program. The program follows the proven model of funding that has been available for decades for major living expenses like a house, car, and tuition.
KidVantage Loans are currently offered throughout California and Colorado, offering monthly payments directly to providers, including daycares, home daycares, preschools, nannies and more. A large expansion of the program is planned for late 2020 / early 2021.
The cost of care and education is one of the top five expenses for families. To meet the challenge, one in three families incur credit card debt to pay for child care costs. Credit cards often charge high interest rates and fees, and paying for child care with a credit card reduces the amount of credit available for other expenses and emergencies. Many families are either forced or choose to let a parent leave the workforce and care for the children at home, which can have a negative long-term impact on a family’s family income. Major studies show that only 50% of parents who leave the workforce return to work full time, and those who do earn an average of $ 700,000 less over their lifetimes.
“Our team has extensive experience in financial services, loans and credit, and many of us have or deal with the child care issue ourselves,” said Brian Enneking, CEO of JSF. “Looking at this both personally and professionally, we realized that something was missing. Why wouldn’t parents have a specially created option to pay for child care expenses over time, as they do with so many other large expenses? ”
Financing child care in a way similar to buying a house or car or going to college reduces the monthly burden of paying in full. It allows families to explore more options and make the right decision by reducing the influence of child care spending on their monthly budget. Funding can also provide a cushion in difficult times, such as the ongoing Covid-19 pandemic.
“It’s clear that, more than ever, parents need help paying for child care costs,” said Sara Mauskopf, CEO and co-founder of Winnie, the popular website and app that provides users with detailed information on local nurseries and preschools. “As difficult as it has always been, many parents now need care for older children because schools are not on site, which is a new expense they had not anticipated.”
To gauge consumer interest in a loan to pay for child care, JSF conducted important research, including a survey of nearly 500 parents with children six years of age or younger. Three in four parents said they would be interested in a program that would allow them to pay less per month for child care and pay the balance over a longer period.
“This is very personal for me as we have two children and have experienced first hand the financial difficulties that we are solving,” said John Chalekian, director of analytics at JSF. “Many parents struggle to find child care that fits their budget. They are often satisfied with a lesser option in choosing a facility or supplier. Many leave the workforce despite a preference to stay, or choose to use high-interest credit to pay for care. We’ve created the flexibility and the ability to make the best child care decision with a monthly payment that families can afford.
The KidVantage program also offers benefits to child care and education centers. With so many parents using credit cards for the fees, the centers are forced to pay a percentage of the fees. JSF has no charge to either the center or the payee, and because all payments are made automatically on the first of each month, the administrative time associated with billing and collection is dramatically reduced.
“Jump Start made it so easy for our parents and our team at the center,” said Marina Sragovicz, whose center was part of the proof of concept program. “The time we saved on billing and invoicing has made a huge difference, not to mention the great benefits they offer our parents. For me, this is the future of so many working parents.
The mechanics are simple. Parents apply online at no cost. Once approved, they select a minimum payment of as little as 40% of their monthly expenses (up to $ 2,000 / month). JSF pays their center first and their minimum payment is due to JSF on the 27th. Parents can pay the full amount if they wish and not be subject to interest. Interest rates for a KidVantage loan start at 6.9%.
“There is no doubt that there is a need to fund child care costs for families in the broad middle class segment,” Enneking said. “Our mission is to expand quality child care options for families, while reducing the monthly burden. These expenses are typically incurred early in people’s careers, a unique time of lower income level and first-rate advancement opportunity. We want these people to have the opportunity to use a program that is best for their children and their budget.
About Jump Start Finance
Jump Start Finance and the KidVantage Loan Program address the critical issue of child care and early childhood education finances for families. Using a proven model that has been used for life’s major purchases like a house, car, and college for decades, the Jump Start team created a loan program with low monthly payments for families which eliminates many long term problems with other payment options present. Faced with high monthly payments, many leave the workforce to provide home care, pay for care with a credit card, or settle for a lower quality / cheaper care provider. By reducing payments to as little as 40% of monthly child care costs, KidVantage loans provide more options, flexibility and choice. Based in Poway, Calif., Jump Start was founded by a team with over 60 years of experience in financial services, credit, and lending. The program is currently available in California and Colorado, with expansion to other states scheduled for late 2020 / early 2021. To learn more, visit http://www.jumpstart-finance.com.
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