Bankrate

Small Business Saturday is just around the corner, and the holiday season is arguably one of the most imporant times of the year for small business communities across the U.S. Why? Let’s zoom out a little: If you didn’t already know, small businesses have a huge impact on the economy. According to the U.S. Chamber of Commerce, small businesses employ nearly half of all U.S. workers and account for nearly 44% of America’s gross domestic product (GDP). That said, every state’s small business environment looks a little different. It got us wondering at Bankrate: Are certain states better positioned to foster small business growth than others, especially in the years following the pandemic? Using 18 data points, our latest study ranked all 50 states based on their small business environments. Notably, many Western states emerged at the top. They are: 1. Washington 2. Utah 3. Wyoming 4. Idaho 5. Nevada The 5 states that landed at the bottom include: 50. Louisiana 49. Mississippi 48. Rhode Island 47. West Virginia 46. Hawaii "While innovation and ingenuity are happening all over the country, our study reveals that some states are better positioned than others to promote small business growth. Many western states fared especially well in our rankings," says Bankrate Senior Analyst Ted Rossman. P.S. Remember to shop small and support your local small businesses on Nov. 30th (or any day this holiday season)! https://lnkd.in/eEspSeAe

My Bankrate colleague Alex Gailey put together a great study about where it's easiest/hardest to start a small business. Here are the top states. Hint: the west fared well in our rankings. https://lnkd.in/eZXQMuuW

Does it seem like the cost of child care has been going up every year? You're not imagining it. Let me break down the numbers for you. When I looked at Bureau of Labor Statistics data, I found that daycare and preschool costs have risen 1.59 times faster than overall inflation since January 1991. My latest study for Bankrate is further proof that child care costs are eating into a significant portion of families’ budgets, no matter where they live in the U.S. The study found full-time daycare for one infant can cost families at least 10% of their annual income in 48 states and D.C. Full-time daycare for one infant costs around $14,000 annually on average in the U.S. A family with children under 18 years old earns an annual median income of $95,721. That means it would take nearly 15% of a family’s median income to afford that national average price tag. However, these costs vary depending on where you live, and some families may be using an even larger portion of their income to cover full-time infant care. Keep in mind we only gauged affordability, not accessibility or quality of child care across the country. Additionally, we didn’t take policy into consideration when assessing average infant care costs across the country, but if you live in a more expensive state for child care, it’s worth investigating to see if you qualify for state-level subsidies. New Mexico is an example of this. Despite being ranked No. 1 for the least affordable in our study, New Mexico is one of the few states that is trying to make child care accessible for most families. As of 2024, a family of four earning up to $124,800 annually can qualify for free child care in New Mexico. Parents: How much of your income is going toward child care expenses? How are you affording and managing high child care costs? Let me know in the comments ?? https://lnkd.in/dgHjNAgK

Are you planning to rely on Social Security benefits when you are ready to retire? Bankrate Senior Economic Analyst Mark Hamrick shares his insights on Bankrate’s latest survey, which found that over half of non-retired U.S. adults (53%) say they expect to rely on Social Security benefits to pay for necessary expenses once they retire. However, when asked about the projected depletion of the main Social Security trust fund by 2033 as predicted,? 73% of non-retired U.S. adults are concerned that their promised benefits will not be paid upon retirement age. For the full survey: https://lnkd.in/eJRdsJMi

Here’s a Bankrate data point that stood out to me recently: More than 4 in 5 holiday travelers (83%) are changing their travel plans due to inflation, according to a new Bankrate survey. Nearly one-third (32%) who are traveling for fewer days, 30% are opting for cheaper accommodations or destinations, 28% are driving instead of flying, and 25% are choosing more affordable activities. That’s despite inflation rates on many items associated with travel rising at a rate comparative to before the pandemic. Not to mention, airline prices are actually cheaper today than they were in February 2020. So how could inflation be interrupting Americans’ plans so much? I then started thinking about holiday travel in my own life. Traveling during the holidays can be quite the puzzle for my fiancé and me. With my parents in Illinois and his family in NYC where we also live, juggling family visits is more than just a logistical challenge. It’s a financial one, too. The truth is, holiday travel felt costly for me long before our recent bout of inflation came into the picture. Airline prices, lodging, rental cars and more can often come down to seasonal supply and demand-related factors. Just like how pricey Halloween candy gets in the weeks leading up to Oct. 31 then rapidly drops in price beginning on Nov. 1, travel prices are no doubt going to move higher during the busiest travel season of the year. But over the years, I've picked up some cost-saving travel tips: 1. Travel credit cards (used responsibly!): Since moving to NYC in 2019, I've paid for pretty much every flight home through points and miles that I earned on a credit card. 2. Skip the gift, travel instead: Sometimes, instead of visiting my hometown, we choose to meet up with family at a different destination (provided it’s within our budget). We all skip the gifts and think of the trip as a vacation instead. 3. Stay with family or friends: When we travel to Illinois, we stay with my parents, saving on lodging costs. 4. Travel on nontraditional days: We often fly early on Christmas or Thanksgiving morning to Illinois, enjoying cheaper fares and less crowded airports. We use the same strategy on New Year's Day, catching early flights when most people are still recovering from celebrations. 5. Don’t fall for the guilt and be true to your finances: To manage expenses, we typically trade off and spend one holiday in NYC, the other in Illinois. What are your go-to strategies for managing holiday travel costs? Share your tips and experiences! https://lnkd.in/eS3k5bBA

Are you planning to take advantage of the holiday shopping deals over the Thanksgiving Holiday weekend? The days following Thanksgiving have become some of the busiest shopping days of the year. According to a new Bankrate survey, 59% of U.S. adults say it is likely they will buy something on Cyber Monday, surpassing Black Friday (53%) and Small Business Saturday (50%). Additionally, about 3 in 4 U.S. adults (76%) say they believe that large retailers offer better inventory/availability than small retailers, but smaller retailers are credited with offering better customer service and unique gift ideas. "Small businesses are facing an uphill battle this holiday season,” notes Bankrate Senior Industry Analyst Ted Rossman. “It's tough for them to win on price and that's a major consideration for inflation-weary shoppers. Large retailers came in hot with deep discounts beginning in early October. The best ways for small businesses to differentiate themselves are by combining unique gift ideas with friendly, personalized service." For more information, please visit: https://lnkd.in/dq_KVGK9

Thanks for having me on to discuss Bankrate's recent study on average infant care costs across the U.S. and broader challenges in the child care industry! If you're a parent dealing with high child care costs, this conversation is worth a listen. Link below ?

From asking for a promotion to moving industries entirely in search of better pay, if you’re planning on making a big career change at work this year, you’re in good company. According to Bankrate’s Job Seekers Survey, nearly half (48%) of American workers said over the summer that they planned to search for a new job in the next 12 months, and 43 percent planned to ask for a raise at work. Here are some words of wisdom from Bankrate’s personal finance experts for navigating tactics to increase your career earnings. https://lnkd.in/gYxmyFrk

NEWS: The Federal Reserve cut interest rates for the second consecutive meeting on Thursday, this time by a smaller quarter of a percentage point. This decision was an easy one. The next ones, however, might not be. Fed officials are facing an uncertain backdrop, now that the next president — President Donald Trump — has been named. Speculations are already swirling that the Fed might cut interest rates by less than originally projected. Trump’s policies promoted on the campaign trail — including higher tariffs and tax cuts for corporations — could fuel inflation, economists say. The “Trump trade” has already juiced up financial markets, with the S&P 500 surging to a new high on the news of his election. Trump’s election is also thrusting Powell back into a familiar — but awkward — spotlight. Trump routinely commented on monetary policy, insisting that the Fed cut interest rates when it was still on the sidelines and grow its balance sheet when policymakers were in the process of shrinking it. On Twitter, Trump called Chair Powell, whom he appointed, an “enemy,” deemed the Fed “the biggest threat” to the U.S. economy and called officials “boneheads.” On the campaign trail, Trump has gone as far as suggesting that the president should “at least have [a] say” in interest rate decisions, though he later clarified that he would not “order” a move. Over the years, I’ve talked to several former Fed officials about what it’s like to be in the room during the meeting. Politics never comes up in the discussion, they’ve all said. But Fed independence comes from Congress, they say, who would have the authority to undo it. For those wondering, the Fed followed through with its rate cut this month for one simple reason: Policy proposals are different than law. I dug back through the transcripts of the Fed’s December 2016 meeting to see how Fed officials discussed Trump’s presidency, immediately after his first election. Check out this key quote from former Fed Chair Janet Yellen: “I will also note that many proposals for taxes and spending are currently being discussed, but there is considerable uncertainty about what the Congress may eventually pass, and that we do not intend to act preemptively based on guesses about future policy even though some of us have incorporated such guesses into our Summary of Economic Projections (SEP) submissions.” All that’s to say, it’s unclear whether Trump would follow through with those promises. And the Fed will likely want to see evidence of how it impacts their two economic goals: stable prices and maximum employment. What do you think the Fed’s next moves could be? Read more: https://lnkd.in/ebxQEyWk?

Multiple surveys, including ours from Bankrate, indicated that the economy (particularly inflation) was a top issue in the election. Other cost-related issues, including health care costs and affordable housing, were at the top of the list. In this terrific long-form video from CNBC produced by Juhohn Lee, we tackle the thorny question, "Does the president actually control the U.S. economy?" When it comes to inflation, for example, both candidates promised to bring prices down. Does the president have that ability? What unique factors led to the historic increase in inflation seen in recent years? What about the Federal Reserve and its ability to operate independently of politics? There's a lot to unpack here, but the questions are critically important for individuals and households and their finances.