“It’s clear that, now more than ever, parents need help paying for child care,” said Sara Mauskopf, CEO and Co-Founder of Winnie, the popular website and app that provides users with extensive information on local daycares and preschools.
POWAY, Calif. (PRWEB) September 09, 2020
Founded to fill a critical and neglected need of financing the cost of child care and early childhood education for families, Jump Start Finance (JSF) has announced the formal rollout of their KidVantage loan program. The program follows the tried and true model of financing that has been available for decades for major life expenses like a home, auto, and college tuition.
KidVantage loans are currently offered throughout California and Colorado, delivering monthly payments directly to providers including child care facilities, home day care centers, preschools, nannies and more. Broad expansion of the program is scheduled for late 2020/early 2021.
The cost of care and education is one of the top five expenses for families. To address the challenge, one in three families take on credit card debt to pay for child care. 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 have one parent leave the workforce and provide child care at home, which can lead to a long-term negative impact on a family’s lifetime income. Major studies show that only 50% of parents who leave the workforce return to work full-time, and those that do earn $700,000 less on average over their lives.
“Our team has deep experience in financial services, lending, and credit, and many of us have or are dealing with the issue of child care ourselves,” said JSF CEO Brian Enneking. “As we looked at this both personally and professionally, we realized there was something missing. Why shouldn’t parents have an option specifically created to pay for child care over time, as they do with so many other major expenses?”
Financing child care in a similar manner to a home or car purchase or college education reduces the monthly burden of a full payment. It allows families to explore more options and make the right decision by reducing the influence of the care expense on their monthly budget. Financing can also provide a cushion in difficult times, such as the ongoing Covid-19 pandemic.
“It’s clear that, now more than ever, parents need help paying for child care,” said Sara Mauskopf, CEO and Co-Founder of Winnie, the popular website and app that provides users with extensive information on local daycares and preschools. “As challenging as it has always been, now many parents need care for older kids as well due to schools not being onsite, which is a new expense they didn’t anticipate.”
To measure consumer interest in a loan to pay for child care, JSF conducted significant research, including a survey of nearly 500 parents with children six years old or younger. Three out of four parents stated they would be interested in a program which allowed them to pay less per month for child care and to pay the balance over a longer period of time.
“This is very personal to me, as we have two kids and have experienced first-hand the financial strain we are solving,” said JSF Chief Analytics Officer John Chalekian. “Many parents face challenges in finding care that fits in their budget. They often settle for a lesser option in selecting a facility or provider. Many leave the workforce despite a preference to remain or opt to use high-interest credit to pay for care. We’ve created flexibility and the opportunity to make the best child care decision at a monthly payment families can afford.”
The KidVantage program also delivers benefits for child care and education centers. With so many parents utilizing credit cards for fees, the centers are forced to pay a percentage in fees. JSF has no fees for either the center or the recipient, and because all payments are made automatically on the first of each month, the administrative time associated with billing and collections is significantly reduced.
“Jump Start made things so easy for our parents and our team at the center,” said Marina Sragovicz, whose center was part of the proof of concept program. “Just the time we saved on billing and invoicing made a huge difference, not to mention the great benefits they provide our parents. To me, this is the future for so many working parents.”
The mechanics are simple. Parents apply online with no fee. When approved, they select a minimum payment of as little as 40% of their monthly expenses (up to $2,000/month.) JSF pays their center on the first, and their minimum payment is due to JSF on the 27th. If they choose, parents can pay the total amount and not be subject to any interest. Interest rates for a KidVantage loan start at 6.9%.
“There is no doubt that there is a need for financing the cost of child care for the broad, middle-class segment families,” said Enneking. “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 juncture of lower income level and prime advancement opportunity. We want those folks to have an opportunity to utilize a program that makes the most sense for their kids 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 tried and true model that has been used for major life purchases such as a home, car and college education for decades, the Jump Start team created a loan program with low monthly payments for families that eliminates many long-term issues other payment options present. Faced with steep monthly payments, many leave the workforce to provide care at home, pay for care with a credit card, or settle for a lower quality / less expensive care provider. By reducing payments to as little as 40% of monthly child care costs, KidVantage loans deliver more options, flexibility and choice. Based in Poway, California, Jump Start was founded by a team with over 60 years of experience in financial services, credit and loans. The program is currently available in California and Colorado, with expansion to additional states anticipated in late 2020/early 2021. Learn more at http://www.jumpstart-finance.com.