Best Cities for Young Families in Virginia

Virginia is an anchor in the mid-Atlantic region, squarely between the Southeast — one of the fastest growing areas in the U.S. — and the Northeast, the country’s economic center. In turn, Virginia has adopted elements of both regions, allowing young families living in the commonwealth their choice of communities: affordable and fast growing or established and stocked with amenities.

For example, Virginia is growing faster than the country as a whole, with the state population jumping over 16% since 2000, compared with 12% for the rest of the U.S.

As well, the state also resembles its neighbors to the north. It has an above-average proportion of college-educated residents, with 35% of its population having completed a bachelor’s degree or higher, compared with the 29% national average. The state is also quite a bit more expensive: the median home value in Virginia is $244,600, which is higher than the national median of $176,700.

When NerdWallet crunched the data to find the best cities for young families in Virginia, we found many excellent places with great schools, recent economic growth and family friendly communities throughout Old Dominion.

Key takeaways

Smaller communities. The average population of the top 10 best places of 29,186 is a fraction of the statewide average of 59,797. Smaller cities are apparently attractive to young families in Virginia, because 30.56% of households are families with children, a number that is 50% higher than the state average.

Above-average schools. The average GreatSchools rating of the cities in the top 10 is 7.6 out of 10, which is significantly higher than the statewide average of 5.7.

Greater Washington, D.C. Seven places in the top 10 are in the Washington, D.C., area, so young families looking to settle near the nation’s capital have a variety of options.

NerdWallet’s analysis

Home affordability. We looked at median home value and selected monthly homeowner costs to prioritize affordable communities.

Prosperity and growth. Looking at current and past family incomes, we calculated the income of residents, as well as the projected long-term growth of each city.

Quality of education. We looked at ratings at GreatSchools.org to find the best schools.

Family friendliness. This year, we added a new component to our methodology: the percentage of families with school-age children and the poverty rate for young children. This measure helps determine if an area is not only affordable for families, but if it is also a healthy one for children.

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NerdWallet crunched the data for 56 places in Virginia — cities, towns and census-designated places. Only places with over 10,000 residents were analyzed. To see the full data set, click here.

Best cities for young families in Virginia

1. Gainesville

With a population of 11,863, Gainesville is the smallest place in the top 10, but families love this Prince William County city: 40% of households are families with children, the highest mark in the state. Gainesville is more expensive than many other cities, with median home values at $408,100. But for the cost, Gainesville provides not only the most family-oriented community in the state, but also excellent schools, with an 8 out of 10 from GreatSchools.

2. Burke

Much like Gainesville, Burke is also a family friendly community with excellent schools, but with relatively expensive homes. Though median homes are on the high end at $478,300, families will find a school system that scored an 8 at GreatSchools and a community where over a third of households are families with children. But even with relatively expensive homes, Burke is one of the more affordable communities — a median family can expect to spend 21% of monthly income on homeowner costs, the lowest proportion in the top 10.

3. Centreville

Centreville is the largest city in the top 10, with a population of 73,476, but over a third of households are families with children, so there’s a large concentration of young families in this suburb of Washington, D.C. With median home values of $369,200, Centreville is the second-most affordable of the five Fairfax County places in the top 10. And the town’s two main parks — Cub Run Stream Valley Park and Ellanor C. Lawrence Park — offer a nearby escape into forests and streams that are perfect for exploring on foot or bike.

4. Vienna

With a median home value of $602,100, Vienna is by far the most expensive place in the top 10. However, young families will find an incredible value for their housing dollar. The town earned a GreatSchools ranking of 8, and over 36% of households are families with children, nearly double the statewide average. The town also hosts a number of annual events, such as Viva! Vienna! in May and a Halloween parade along Maple Avenue.

5. Bon Air

Originally developed as a resort community for 19th century residents of nearby Richmond, Bon Air still sports much of the beautiful Victorian architecture of the time. History aside, the median home value of $217,900 is the lowest in the top 10, and the town earned a GreatSchools score of 9, which is tied for the highest mark in the state. Even though only 20% of households are families with children, the blend of affordability and excellent schools likely will help that number increase.

6. Mechanicsville

With the lowest cost of living and a high percentage of families, Mechanicsville is another top destination for young families in Greater Richmond. Median home values of $229,600 are below the statewide median, so it isn’t surprising that over 25% of households are families with children. And with a location just 7 miles from downtown Richmond, residents of Mechanicsville are only minutes away from some of the best cultural and economic opportunities in the region.

7. Leesburg

This Loudoun County town is swarming with young families — over 37% of households are families with children, the second-highest mark in the top 10. The town holds several popular annual events, including the flower and garden festival in April and the Leesburg Airshow in September. Whether exploring the 138-acre Ida Lee Park or hiking up to the crest of the Red Rock Wilderness Overlook, active families will enjoy the town’s parks.

8. Poquoson

Young families are attracted to Poquoson, which is located on the Virginia Peninsula on Chesapeake Bay, not only for its beauty, but also for its affordability and the schools. The city’s median home value of $302,400 is significantly below the top 10 average of $378,080, and local schools earned an 8 at GreatSchools, one of the highest marks in the state. The town’s biggest annual event is the Poquoson Seafood Festival, a three-day event with music, children’s entertainment, a fun run and, of course, plenty of crab.

9. Chantilly

The third Fairfax County place in the top 10, Chantilly is another city that is full of young families: over 35% of households are families with children. With median home values of $432,700, Chantilly is also more affordable than its neighbors Burke and Vienna. Residents here can take advantage of one of the best attractions in the state: the Steven F. Udvar-Hazy Center, which is an extension of the National Air and Space Museum. There, aspiring aerospace engineers can check out a Concorde, SR-71 or the space shuttle Discovery.

10. Lorton

The fifth, and most affordable Fairfax County town in the top 10, Lorton offers suburban D.C. residents an attractive option with good schools (a GreatSchools score of 7) in a community where 31% of households are families with children. Located along the Occoquan River, Lorton also provides an array of outdoor recreational opportunities with the nearby Occoquan Bay National Wildlife Refuge, Mason Neck State Park and Pohick Bay Regional Park all offering plenty of hiking, kayaking, canoeing and wildlife watching.

On the map below, click on an icon to see more details about each place on the top 10 list.

 

Best cities for young families in Virginia

 

 

Methodology

All data are from the U.S. Census Bureau’s 2013 American Community Survey. Our methodology focused on four factors:

Home affordability. Home affordability, 30% of the total score, was calculated by averaging index scores for median home value and median selected monthly owner costs. The lower the costs, the higher the score.

Growth and prosperity. Growth and prosperity are 20% of the total score. The two metrics involved were growth in family income from 1999 to 2013, and median family income in 2013. Both were weighted equally and positively.

Family friendliness. To measure if an area is a good place for families, which is 30% of our total score, we looked at the percentage of married couples with at least one child under age 18, and the percentage of families in poverty with at least one child under age 5. The percentage of families with at least one child was 70% of the score, while the percentage of families in poverty was 30% of the score.

Educational quality. Using data from GreatSchools, every place was assigned a ranking from 1 to 10 for the quality of schools. Education is 20% of the total score.

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Best Cities for Millennial Job Seekers in Missouri

Manufacturing and transportation are two of the top industries in Missouri. They were also among the industries hit hardest by the Great Recession, and that made it difficult in recent years for millennials to find jobs in the state.

There’s good news, though. The state’s job market is on the upswing. Missouri added 42,000 jobs from May 2013 to May 2014, and 6,500 of those jobs were in manufacturing, according to the state’s 2014 economic report.

Education and health care are also thriving in the Show-Me State. Since 2003, the sectors’ contribution to the state’s economy grew faster than any other industry, according to the report.

It’s no surprise, then, that many of the top cities for millennial job seekers in Missouri are industrial hubs or home to large regional medical centers.

NerdWallet considered the following factors to find the top 10 cities:

Are there jobs in the area? Using the most recent U.S. Census Bureau figures, we looked at the unemployment rate in 2013, and the average worker payroll salary in 2012. We determined the average worker’s salary with the census bureau’s payroll by ZIP code. Lower unemployment rates and higher payroll salaries scored positively.

Can you afford to rent near work? Using census data, we measured a city’s median rent, including utilities, to determine if an area has reasonable rent costs. Lower costs resulted in a positive score for a city.

Do other millennials live there? We determined that millennials are workers ages 18-33, which is the definition used in a March 2014 Pew Research Center report. We used two of the census bureau’s brackets, ages 20-24 and 25-34, to create a millennial group for our analysis. From this, we found the percentage of millennials in a city’s 2013 population and the growth of millennial residents from 2010 to 2013. High percentages received positive scores.

Our study analyzed 95 places in Missouri with populations over 5,000. Here’s the data set.

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Key takeaways

Some cities are still struggling. The median unemployment rate for cities we analyzed was 8.4% in 2013, the most recent data available at the city level. That’s well above the state’s current overall unemployment rate of 5.5%. In some cities, such as Pevely and Macon, low rent or high average payroll countered higher unemployment rates.

Affordability is key. Median rent is below the state average for nearly every city on this list. The one exception — Maryland Heights — also has the highest average payroll of the cities we analyzed.

 

1. Pevely

This small city along the Mississippi River saw an influx of millennials in recent years. Two likely factors: low rents and high salaries. Pevely’s median rent of $593 is among the lowest in the state. And the average salary for employees in this industrial hub is nearly $52,270 — second highest in the state. Pevely is also a short commute to St. Louis, home of nine Fortune 500 companies.

2. Jefferson City

Jefferson City has a lot going for it. Named the “most beautiful small town” in America by navigation mainstay Rand McNally, Missouri’s capital city boasts below-average median rent and unemployment. That’s thanks in part to state government jobs and other major employers, such as Scholastic and Capital Region Medical Center. Millennials can unwind with a Maximum Sentence IPA at Prison Brews, a craft brewpub near the former state penitentiary, or hike the nearly 30 miles of trails in the area.

3. Trenton

Trenton’s millennial population grew nearly 20% from 2010 to 2013. ConAgra Foods, the company behind Chef Boyardee and Healthy Choice, and Modine, a technology manufacturer, are two employers drawing younger workers to the city. Flanked by Lake Trenton to the east and Crowder State Park to the west, this small city boasts 110 acres of parks and holds an annual Missouri Day Festival every October.

4. Bowling Green

Rent in Bowling Green is just $484 a month — nearly $200 below the state average. That is a big plus for millennials drawn to the city by job opportunities in education and health care, which account for nearly a quarter of the city’s businesses. Bowling Green School District, which consists of two elementary schools and a middle and high school, has posted several open positions for the 2015-16 school year.

5. Macon

Manufacturing and agribusiness are two of the primary industries in Macon, a city of about 5,500 people in north-central Missouri. At $27,642, average payroll for Macon businesses is on the low side. But the city’s median rent of $399 is the lowest in the state, making it an affordable option for young adults on a budget.

6. Bonne Terre

Millennials relocating to Bonne Terre should have no trouble finding their peer group: 36% of the city’s nearly 7,000 residents were ages 18 to 33 in 2013. Most residents work in manufacturing, education, health services or retail, according to the city’s chamber of commerce. Median rent in Bonne Terre, rated among the safest cities in Missouri by SafeWise, is just $453.

7. Fulton

Fulton is home to two colleges — Westminster College, the site of Winston Churchill’s 1946 Sinews of Peace, or Iron Curtain, speech, and William Woods University — as well as Fulton Public Schools, the Missouri School for the Deaf and two private schools. Average payroll in Fulton was nearly $39,000 in 2012, well above the state average of $30,293.

8. Maryland Heights

Named the “Digital Capitol of Missouri” by Google in 2013, Maryland Heights is a business and entertainment hub on the outskirts of the St. Louis metropolitan area. The city’s top employers include Edward Jones, Hollywood Casino and Magellan Health, which added over 1,600 jobs from 2003 to 2012. These top employers are one reason why Maryland Heights boasted an average payroll of almost $56,775 in 2012, the highest of all the cities we analyzed for this study.

9. Maryville

A large millennial population — nearly 40% of the city’s 12,000 residents were ages 18 to 33 in 2013 — and employers such as Kawasaki and Northwest Missouri State University, helped push Maryville into the top 10 cities for job seekers. Nodaway County Economic Development, as well as the Center for Innovation and Entrepreneurship and the Small Business and Technology Development Center at Northwest Missouri State, support existing businesses and help new ones get off the ground.

10. Neosho

Millennials looking for a midsize city with inexpensive rent and below-average unemployment rates will find themselves right at home in Neosho. At 5.3%, the city’s unemployment rate is among the lowest in the state, and median rent in 2013 was $557, over $100 less than the state average. The southwest Missouri town is also known for its natural beauty, with nine natural springs located within the city limits.

 

 

Methodology

The overall score for each place was derived from the following sources:

1. Millennials as a percentage of the population and the growth in the millennial population from 2010 to 2013 are each 15% of the score.
2. The unemployment rate for each city is 20% of the score. The lower the unemployment rate, the higher the score.
3. Average annual worker salary is 30% of the overall score. Salary figures were calculated by averaging salaries by ZIP code, then dividing by the population.
4. Median gross rent is 20% of the score. The lower the rent, the higher the score.

All data comes from 2013 American Community Survey and the 2012 Business Patterns Survey conducted by the U.S. Census Bureau. NerdWallet analyzed 98 places in Missouri, but three places without payroll data were excluded.

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EBV Helps Veterans Who Can’t the Fit 9-to-5 Mold Become Entrepreneurs

Adjusting to civilian life after military service can be tough for veterans, especially those with disabilities.

As they make the transition, many veterans are turning to entrepreneurship, forgoing traditional 9-to-5 jobs. In 2007, military veterans owned 2.4 million businesses, or 9% of all U.S. enterprises, according to the most recent data from the U.S. Census Bureau.

Last year, there were 3.2 million veterans who had served on active duty since September 2001, according to the Bureau of Labor Statistics. Each year, over 250,000 service members leave the military.

Although veterans may possess discipline, determination and leadership skills gained from their service, they may not have the technical know-how to get an idea off the ground, find funding and run the day-to-day operations of a business.

A unique program is helping to fill the knowledge gap. Founded in 2007 at Syracuse University, the EBV National Program provides a comprehensive regimen that includes online courses, in-person training and yearlong support and mentorship.

EBV, or Entrepreneurship Bootcamp for Veterans With Disabilities, also is available at other universities, including Florida State, Cornell, Texas A&M, Purdue, UCLA, UConn and Louisiana State. The on-campus training is held at the individual school at different times throughout the year.

This year, Saint Joseph’s University in Philadelphia and the University of Missouri are joining the EBV consortium of schools, according to Adam James Florkowski, EBV’s national program manager and a veteran himself. Florkowski says the expansion will allow the program to serve more veterans.

Syracuse’s Institute for Veterans and Military Families also provides curriculum and instructional support for a training program offered by the U.S. Small Business Administration. Boots to Business, which is available at 165 military installations around the world, has trained 25,000 transitioning service members in the last two years.

Boots to Business helps service members and their wives explore entrepreneurship, says SBA Administrator Maria Contreras-Sweet, “by showing them how to apply their military skills to start and grow their business.”

NerdWallet recently spoke with Katherine Frontino, EBV’s national program coordinator, about EBV, its mission and how veterans are uniquely qualified to be entrepreneurs.

Here is a lightly edited excerpt of our Q&A.

NerdWallet: What is the EBV program?

Frontino: The EBV program is designed to be a hands-on experiential learning program for service-connected veterans who have separated after Sept. 11 and are interested in and have a passion for entrepreneurship.

What we really do is a three-phase program. It consists of an online phase, then there is a weeklong residency training program at one of the universities where we offer EBV. After that happens, they participate in a yearlong, follow-up support mentorship program that’s called EBV TAP, which stands for Technical Assistance Program.

Since 2007, how many veterans have gone through the program?

Right now, we’re just under 1,000 students. Florida State is starting their class in a couple of weeks [June 10-17, 2015]. Once they graduate, we might be at 1,000 at that point.

About 65% of students have started businesses and about 90% of their businesses are still in service.

What kind of businesses are we talking about?

It’s all over the board. We have a lot of students in government contract businesses. We have students who have started restaurants, started fitness centers, gyms, bars, jewelry businesses. I have a student who graduated in the summer who started a veteran artisanal group. It runs the gamut. The top five industries are retail, food industry, construction, education and professional services.

Could you describe how the program works?

The first phase is the online course. Students actually apply to the EBV program and all the applications go through Syracuse University directly. Once we get them, we process them and determine the best fit for them in terms of school. That’s usually based on where they’re located regionally. We do pay for all travel accommodations to go to the EBV school.

The school will start their online program a month before the residency portion begins. Our students have to go through a very rigorous online course. We do keep track of them and keep tabs on them, making sure they do all their readings. For some reason if they’re not able to complete Phase One, they will not be able to move into Phase Two.

Once they complete Phase One, that’s when they travel to one of the campuses to do the residency training. We do cover the costs of all the travel and accommodations so that they don’t have to pay to fly anywhere.

We consider the whole program a mini MBA bootcamp. The online course is designed to introduce business terminology. They start interacting with the rest of the class as well. They are in the discussion with each other so it’s a great way for them to network. It’s a great place to develop ideas, get some financials looked at and start looking at marketing and start figuring out what they’re going to do and how they’re going to do it.

Once they get to campus, everyone in that classroom is on the same page and understands what’s going on.

What do the veterans learn at the residency program?

We do a very nice opening ceremony. They’re introduced to each other and introduced to the EBV team. The next day, they jump into class. They’re in class all day, every day.

During that time, we cover everything. We cover marketing, we cover financials, tax information, legal, opportunity recognition. We talk about bootstrapping. We talk about presentation and empowerment, economics and nonprofit development. Human resources, government contracting and technology and social media. They go through the class the whole week. In the evening, they work on their venture pitches.

They have the chance to take what they’ve learned throughout the day and apply it to the venture pitch. The last day they’re on campus, they do presentations. We break the class into sections and in each room we have a couple of panels. We call them judges. They’re local experts in the industry who are there to offer students feedback and ask them questions.

They have to do that in the future once they start asking for funding. It’s very important for them to learn that.

Why train military veterans in entrepreneurship instead of, say, job training?

Dr. Mike Haynie, who founded the program at Syracuse in 2007, was an entrepreneurship professor at Whitman [School of Management at Syracuse]. He found that a lot of our veterans who were returning from combat were having a hard time because of their disabilities that they may have suffered. Cognitive problems or physical problems. They had a tough time jumping back to the workplace in the traditional civilian format to get used to sitting in a room with people who didn’t have the same background, knowledge or skills. And then on the other hand, it was plain old uncomfortable sitting at a desk all day.

A lot of them were going off to start businesses. They didn’t have the knowledge on how to actually start businesses and they were failing and losing money, time and energy. Veterans are very resilient and hard working and very determined, but if they don’t have any background information, it was setting up for failure.

If you’re interested in business, we want to provide training. They’re in a group of veterans with the same mindset and the same experience. It’s a safe environment for them to learn and share their ideas.

What attributes do veterans have that could make them successful entrepreneurs?

I think the determination is a huge one. They don’t fail. Their whole goal when they go into the military is to accomplish something. A lot of them come out with that mentality of, “What do I do next and what can I accomplish?”

They have a lot of organizational skills. They have a lot of skills as far as working in a team environment. They learned so much of that in the military. I think a lot of them make really good leaders because of what they’ve learned and the discipline they have in the military and because they had opportunity to be in a leadership position in the military. Coming out and starting their own business, they have that vision and ambition, and they’re able to take on a project, and they’re able to handle it and deal with it.

Conversely, what are the challenges veterans face in starting businesses?

I think one of the big ones is the knowledge on how to do it. The first steps. That’s a huge one. And sometimes, every once in a while, we’ll get students who have cognitive problems who may have suffered a traumatic brain injury who have a difficult time looking at numbers and business plans. They need extra assistance for it. We’re able to provide that for them so ultimately they could reach their goal.

They have a great idea, but they may not be technically advanced or have no idea how to use social media. Some of them have bad credit and must figure out how do they get out of the hole and rebuild themselves so they can apply for small-business loans.

Besides helping disabled veterans, you also have an EBV program for military families. Why focus on families?

A lot of vets are returning, and somebody who was close to them, as far as a blood relative or close to them emotionally, is taking care of them. And so that’s kind of where that program came up. Spouses have their own business but also are caring for a disabled veteran. We talk more about work-life balance and being in a caregiver role and running your business at the same time.

We’ve had 200 who have gone through the program. It’s smaller. We run it at Syracuse University and Florida State University.  We’re hoping to expand it in the future because we discovered that there has been a demand for it.

How do you help veteran entrepreneurs find funding?

That’s really part of our TAP program and part of the resources we’re able to offer there. We go through some microlenders. We work with Kiva closely [the nonprofit allows people to lend money by way of the Internet to low-income or underserved entrepreneurs] to help students apply for loans and grants. We have other organizations we work with as well.

We have the EBV Foundation, which was started by somebody who graduated from Syracuse University. He loved the program so much that he started this foundation. Every class that graduates from the program has a chance to win a grant of up to $3,000. Each student has six months from when they graduate to submit their plans. The EBV program reviews the business plan and works with the student to tweak and finalize it.

What can other entrepreneurs learn from veterans?

I feel like determination is a huge thing. Some of my students have come through my program and say, “I planned to have a carer in the military, and I planned to do that my entire life.”

For some of them, that is their goal. They go into combat and something happens and they’ve been medically retired and they’re not able to continue toward their goal. They find something else they could be passionate about, and for some of them starting their business is their goal and they’re not going to give up. It’s their second chance to do something. They have their passion, and they’re some of the most determined people that I’ve met.

A lot of entrepreneurs in general are creative and they’re interested in learning more and evolving, but I think with veterans, determination is a real key factor in what keeps them going and in what makes them successful.

For more resources for veteran entrepreneurs, check out these options:

The SBA has 15 Veterans Business Outreach Centers across the country and runs the Office of Veterans Business Development.

The Boots to Business program provides entrepreneurship training throughout military installations in the U.S. and abroad.

The U.S. Department of Veterans Affairs’ Veteran Entrepreneur Portal provides information and resources on government contracting and how to do business with public agencies.

The National Veteran-Owned Business Association is an advocacy group.

Hanah Cho is a staff writer covering small business for NerdWallet. Follow her on Twitter @hanahcho, on Google+ and on LinkedIn.

 

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Think Twice Before Planting Savings in a Checking Account

Whether you’ve spent a few years or several decades diligently stashing away money for a big purchase, or even for retirement, be careful about where you keep those savings.

Since most savings accounts pay less than 1% interest and therefore don’t provide huge returns, you might be tempted to simply dump your savings into a checking account for convenience. That way, you’ll avoid the hassles of having to manage two separate accounts. Although doing so may seem like a harmless move, many experts warn against it because it heightens the risk that you’ll spend what you meant to leave untouched.

And that means you’ll be left empty-handed when you need that money most.

“The last thing you want is your savings sloshing around with your spending money,” says Stephanie Genkin, a financial planner who teaches investing basics at New York University.

“Not only do I believe that savings and spending money should be kept in separate accounts, I think it’s best to keep these accounts at two separate banks,” she says. “This way, the two don’t meet, except with some effort.”

Consumers should view their savings not as a vehicle for making money, but rather as a resource that can be tapped in the future, says MaryEllen Miller, a financial consultant in San Antonio.

“Earning interest on savings is nice, but the bigger issue is actually committing to the savings,” Miller says. “For most people, if the money is in their checking account, even if they mentally earmark it for savings, it is way too easy to spend.”

Online banking options

Online banks serve as alternatives to bricks-and-mortar banks, and credit unions and may pay interest at slightly higher rates. Some offer savings accounts with interest rates around 1% and very low or no minimum balance requirements.

You also might want to give certificates of deposit, or CDs, a look for money you plan to hold onto for a longer period of time. These accounts — called share certificates at credit unions — require you to leave the money alone for terms that can run from a month to five years or more, but usually pay a higher rate of return in exchange. The best CD rates hover around 1.85% for those with terms of four years. The downside is that you could pay penalties for withdrawals before the term expires.

Investing savings

People who want to earn a greater return on their money are better off investing it than waiting for interest on their savings balances to build, says Elle Kaplan, chief executive of LexION Capital, a fiduciary wealth management firm in New York.

“To grow your wealth so that it can work for you, invest in the financial markets. Time is on your side, so the earlier you start, the better,” Kaplan says. She likens keeping money in savings accounts to “modern-day mattress stuffing.”

Keep in mind, though, that investing comes with transaction costs, no guarantee of earning anything and a greater risk of loss; savings accounts, on the other hand, are insured for up to $250,000 and fees tend to be minimal. Those who have accepted these risks to invest in things like equity index funds have generally done well since U.S. stock markets touched lows in March 2009.

If you plan to invest some of your savings, Kaplan says it’s crucial to build an emergency fund before you start. It should hold enough to cover three to six months of living expenses. She also says to make sure that you’re free of high-interest debt before tackling the stock market.

The takeaway

Combining savings and checking accounts may end up backfiring. Instead, experts say that keeping the two separate is a wiser way to go. Online banks and CDs can be viable alternatives if you want slightly higher returns. And if you’re willing to be more adventurous, consider investing, but only if you’re debt-free and have a rainy-day fund in place.

Tony Armstrong is a staff writer covering personal finance for NerdWallet. Follow him on Twitter @tonystrongarm and on Google+.

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5 Apple Watch Apps to Help Manage Your Money

The Apple Watch may not have hit Apple retail store shelves Friday, as had originally been thought, with the company scrambling to fill and ship pre-orders. But they are beginning to arrive for many of the Apple faithful who placed those early orders, as well in fashion boutiques from Tokyo to London to L.A.

And Apple has opened the Apple Watch App Store, with about 3,000 apps ready to go for its wearable-tech accessory.

A list of recommended apps that Apple rolled out includes several designed to help with your personal finances — from keeping track of your monthly budget to making sure you didn’t leave an electricity-sucking light on at home.

Some money-related apps, like Target, Citi Mobile and Apple’s own Apple Pay, are brand-specific. But others can be used by most anyone, whether you’re a small business owner or just someone who’d rather not have to pay a bunch of parking tickets.

Here’s a look at five of them you may want to consider if you have a new Apple Watch, or have one on the way:

1. Mint Personal Finance

The watch version of the popular monthly budgeting app lets you view your monthly spending goals and monitor your progress toward them.

You can choose to get weekly notifications as well — another way to get a reminder about how you’re doing on the spending front.

Mint also lets you get reminders when bills are due, keeps track of your bank account and credit card balances and provides other tips and tools on your finances.

2. PayByPhone Parking

Never get a parking ticket again? That’s what this one promises.

Like PayByPhone’s app for smartphones, you can use it to pay electronic parking meters and receive reminders when your time on the meter is almost up.

But on Apple Watch, you can use the Glances feature to keep a constant eye on how much time you have left. If you’re not ready to move along, you can simply add more time to the meter right from your watch.

3. Lutron Caseta

Hooray for the Internet of Things! Lutron Caseta lets you control the lights in your home, no matter where you are.

Sure, sometimes that means you’re just too lazy to get off of the sofa when you want to dim the room for movie time. And you can remotely turn lights on and off when you’re away to up your security game.

But for our purposes here, the handy feature is one that could help with your electrical bill. It sends you a notification when you’ve left the house with the lights on and gives you the option to turn them off.

4. Invoice2Go

Invoice2Go is designed to help small business folks create, send and keep track of invoices. The app for Watch takes it a step further. Using what’s called geo-fencing, the app records the time you arrive at a job site and the time you leave, making it easier to track on-the-job hours.

Users may then adjust those hours, send electronic invoices and receive notifications when they get paid on their  Apple Watch

5. Salesforce Wave

Speaking of small business owners, this app lets you access the world’s most popular customer relationship management app, getting real-time analytics right on your wrist.

It lets you pull together data like financials, product usage and sales opportunities and display them on the watch.

Doug Gross is a staff writer covering personal finance for NerdWallet. Follow him on Twitter @doug_gross and on Google+.

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Small Business Success Story: MadeSolid Raises $303,000 on Wefunder

Like many great entrepreneurs before him, Lance Pickens dropped out of college to start his company, MadeSolid, which develops advanced materials for 3D printers.

The materials give 3D printer owners the ability to create real 3D objects, such as engine parts for cars and trucks, dental parts, and even jewelry.

“It’s the idea of being able to take anything from your head, and having this magical box that can turn it into reality,” says Pickens, who had been in a chemistry PhD program at the University of Southern California. “Fundamentally, a 3D printer takes atoms and ideas, and turns [them] into physical stuff. I mean, that is powerful.”

Pickens first encountered 3D printers at nonprofit group Crash Space in Los Angeles in 2012. At the time, he also had a job as a programmer, but he says he found himself spending more and more time “skipping out of work to play with 3D printers.” So, Pickens followed his instincts and passion, and launched MadeSolid in 2013 in Oakland, California.

So far, it certainly seems like Pickens has made the right choice. The company grew its monthly revenue from under $5,000 in late 2013 to more than $30,000 by late 2014 – a total growth rate of about 600% and an average monthly growth rate of 34%, according to MadeSolid’s Wefunder campaign.

The worldwide market for 3D printing is expected to balloon over the next few years, growing from a $5.2 billion market in 2015 to a $20.2 billion market by 2019, a compound annual growth rate of 44%, according to consulting and market analysis firm Canalys.

“Cheaper printers, great software and amazing new materials are opening up 3D printing to users of all skill levels to see and access this incredibly exciting technology,” says Aaron Roy, vice president of operations at 3DPrinterOS, which creates software for 3D printer users.

A big success for MadeSolid came in 2014, when the company was accepted into Y-Combinator, a Silicon Valley seed accelerator that provides money, advice and connections for start-ups. There Pickens first heard of Wefunder – an online investment crowdfunding service that connects start-ups with investors – as Wefunder had gone through the Y-Combinator itself, a year and a half earlier.

After he was invited to a networking event hosted by one of Wefunder’s founders, Pickens was impressed with the company and decided to try to raise money on the platform.

A crowd investing platform for start-ups

Wefunder believes that anyone – regardless of his or her financial situation – should be able to invest in a small business or start-up. Mike Norman co-founded Wefunder back in 2012, when he said he had friends who were starting companies all around him, but was “frustrated at the idea that he wasn’t legally allowed to invest in them.”

“Being able to support something from the ground up — investing in a person and idea that you think is really compelling — is such a great experience,” Norman says. “And we thought it was ridiculous we were prohibited by law [from doing] so.”

The site provides “insider access” to high-growth, pre-initial public offering companies (such as MadeSolid), with minimum investments of as little as $1,000.

Wefunder was one of the companies that lobbied the Securities and Exchange Commission (SEC) and Congress for the passing of the Jumpstart Our Business Startups (JOBS) Act. The JOBS Act encourages the funding of small businesses by allowing private start-ups to advertise and solicit investments and letting the general public invest and receive equity in companies.

“We got involved to really help them understand how entrepreneurship works, how the Internet works, and how to formulate some legislation that would actually work in practice,” says Norman, who was in the White House when President Obama signed the JOBS Act into law on April 5, 2012.

However, while Titles I, V, and VI of the JOBS Act became effective immediately, Title III — which would allow unaccredited investors to participate on sites like Wefunder — was delayed. Currently, only accredited investors (those with $1 million in net worth or $200,000 annual income) can legally invest on Wefunder and other equity crowdfunding platforms.

Norman says the SEC will release final rules in late 2015 to allow nonaccredited investors to participate. So anyone – regardless of his or her financial situation – may soon be able to invest in the next Google or Microsoft, or at least support his or her friend’s new small business.

Keeping up with demand

To help MadeSolid meet growing demand and to get a little more aggressive by launching new products, the company decided to try its luck on Wefunder.

Originally, the company’s target was to raise around $100,000 on the site, but it ended up blowing past that figure, raising $303,000.

“MadeSolid is really riding the wave of an industry, which is on the rise,” Norman says. “It’s clear there’s going to be so many different applications for technology and things that have been manually assembled beforehand that are now going to be printed. So, for our investors and for us, we’ve been able to see the very clear trajectory of this industry.”

“Within the industry, the materials side, they’ve come up with a few applications where they’re making money, they have sales, and they have a very smart roadmap and plan for how it is they’re going to grow moving forward,” Norman adds. “They were able to bring that out in their profile in a way investors can get their hands around.”

According to Pickens, Wefunder “basically did everything” for MadeSolid, from bringing the investors together and vetting them to creating the best content.

“Wefunder curates who’s going to be on the platform — they care about who’s on the platform,” Pickens says. “So, you’re not going to be necessarily competing with a lot of other companies at the same time. You’re going to get more hands-on than what you would get on any other site, and I think that’s the chief advantage.”

As a start-up, you’re constantly busy – trying to increase sales, building new products, dealing with customers – which can make raising money a distraction. So the fact that Wefunder handled a lot of the work was huge for MadeSolid, according to Pickens.

“You can run your company – you don’t have to stop to do fundraising. The advantage is just awesome,” he says.

How to raise money on Wefunder

To get started on Wefunder, you simply apply on the website and submit information about your company. Wefunder will then decide if it thinks you’re a good fit for the platform. According to Norman, factors taken into consideration include: Does the product respond to the need of the marketplace? Does the management team have experience in this space? And does the business have traction – how far along is the company?

“Then, we’ll pick generally one company a week from all those that apply, and we’ll work with them to build out a really compelling profile to give investors a really clear idea of what it is they are doing,” Norman says. “We would then launch it to our community to start taking investments.”

What makes Wefunder unique is the company makes money only if the start-ups on its platform are successful. That’s because Wefunder gets paid 10% of a company’s profits, a figure known as carried interest. This is about half of what the typical hedge fund or venture capital firm takes, according to Wefunder.

“It’s really important to us that we be aligned with our investors in terms of finding good companies and being compensated on the success of those good companies, so that’s why the carried interest model makes sense,” Norman says. “So if the company fails … we don’t make anything. We are invested alongside our investors.”

The future for MadeSolid and Wefunder

Thanks in part to the equity funding on Wefunder, MadeSolid plans to launch three new products over the next six months.

One of these products, called FlexSolid, is potentially game-changing, as it will give 3D printers the ability to create soft objects such as shoes and other wearable items or wheels for a skateboard.

“I think it’s really going to change the way people think about 3D printing, and it will bring a lot more people into the market,” Pickens says. “We have more products we are launching that will essentially turn 3D printing from a toy into a manufacturing technology for everyone.”

Wefunder is eagerly waiting for the SEC to publish the final rules of the JOBS Act, expected in October 2015, which will allow non-accredited investors to participate in crowdfunding platforms.

“It changes fundamentally what we are as a company,” Norman says. “What happens when the rule come into effect, start-ups can think differently about fundraising. You can have your customers on board as investors; people that believe in you in the beginning, they can become investors instead of just customers. And those are the people who are going to believe in you the most.”

For more information about how to start and run a business, visit NerdWallet’s Small Business Guide. For free, personalized answers to questions about starting and financing your business, visit the Small Business section of NerdWallet’s Ask an Advisor page.

Steve Nicastro is a staff writer covering personal finance for NerdWallet. Follow him on Twitter@StevenNicastro and on Google+.

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4 Secrets for Survival With a New Restaurant

The myth that it’s nearly impossible for a restaurant to succeed started with a TV ad about 10 years ago, says Greg McNally.

McNally is a former restaurateur who runs Restaurant Profit Technologies, a consulting business in Los Angeles. The infamous ad he remembers had a celebrity chef claiming that 90% of restaurants fail within their first year. And even though no facts backed it up, the statistic stuck.

The restaurant industry has a reputation for frequent failure, but McNally says every industry has a substantial failure rate, and some (like the furniture industry) see businesses fail more often. McNally concedes that many restaurants do shut down in the first year, but the failure rate decreases the longer a restaurant is open. Well-capitalized restaurants typically have a high success rate, he says, since the root cause of most failures is business problems rather than food or service issues.

Christin Fernandez of the National Restaurant Association says that every year, around 60,000 restaurants open and about 50,000 close. While that illustrates churn in the industry, she says, not all of those closures are failures. Sometimes the owner is ready to move on or wants to change locations.

Despite overblown failure rates, the truth is there are common mistakes that contribute to many restaurants shuttering each year. Here are four ways to overcome the most common mistakes McNally sees, with advice from successful restaurateurs who have been there.

1. Don’t start undercapitalized
or underestimate costs

“Most restaurant operators underestimate the capital requirements to get the business started,” McNally says. “It’s a complicated, difficult business, and people get into it not recognizing the complexity and run out of money.” He says operators often don’t realize they need to pay for building permits, government licenses, real estate brokers, architects, engineers, contractors, shipping equipment and even music. Newbies are often astonished to learn the extent of the choices and costs required, McNally says. (He adds that he’s never seen a restaurant come in under budget).

Industry insight

“Neither [my business partner nor I] had owned a restaurant before. We thought we had enough going into it. We knew we’d be working with a very tight budget … but pretty much everything costs almost double what you expect. Permits were a lot more expensive than we thought. Even with friends helping with furniture, it was so much more expensive than planned. Architects ended up doing thousands of dollars of work in trade for mac and cheese. We were planning on keeping a big chunk aside when we opened for operating expenses, but we pretty much had two weeks of operating expenses when we opened, which was really scary.

“Luckily for us, Homeroom was pretty successful right off the bat. If we weren’t busy right from the beginning, we wouldn’t have made it. People should really try to have at least three months of operating expenses saved before you open. When you’re new, vendors won’t take credit from you; they want you to pay right away until you establish history. You need extra money on hand to be able to pay people. We recently opened a to-go location around the block, and we learned a lot from opening the first location. We definitely did things smarter the second time around.”
—Allison Arevalo, co-owner of Homeroom in Oakland, California, since 2011

2. Have a business plan

New restaurateurs often open with the idea they’ll succeed by having better food and service than anyone else, McNally says. But that’s not enough — everyone expects that. You need a strong concept and a business plan, two things he’s seen countless restaurants open without. “A business plan isn’t a recipe for success; it’s a road map,” he says. “And without a road map, you don’t know where you’re going.”

Industry insight

“I think a business plan is as much for yourself as anyone else. People think you need to write one for the banks, but I see a lot of restaurants who don’t even know who they are before they open their doors. They haven’t established that identity, they don’t know what their mission is, what they’re trying to accomplish, who they’re trying to serve or what they’re trying to serve. My first business plan was probably my most thorough. After that, in my second two restaurants, I still put together a business plan, had a financial forecast, and reasons why the location will work. It was for myself. You can write whatever you want to make the bank happy, but ultimately, a business plan is your own roadmap for how you’ll launch and why.”
— Josh Wolkon, owner of Vesta Dipping Grill (since 1997), Steuben’s Food Service (since 2006) and Ace (since 2012) in Denver

3. Recognize the challenge of managing people

“A restaurant is the only business I know of that takes a raw product and manufactures that product, markets the product, delivers the product, cleans it up and collects money from the end user, all in an entire experience,” McNally says. For all these processes, you need people with different skills, experiences and temperaments. “It becomes a team sport, and we need people in different positions to fulfill the role for the success of the team.” The problem? Most restaurant owners are entrepreneurs with strong personalities, and they often struggle to share their vision and passion with others.

Industry insight

“What a lot of people don’t realize is that they get really good at a specific skill set and then they think they’re so good at it, it will overcome all other inadequacies. I see this all the time with chefs: They’re really good cooks and think all they have to do is be awesome, and then everyone will just follow along and do exactly what they say. You have to know where your gaps are and get the right people in place, and not try to do everything. If you’re an emotional leader, it’s important to understand your emotions, since anger and all those things trickle down to the culture of the restaurant. The more you can do work based on facts, what is and isn’t happening, and trying to minimize the emotional charge of the work culture is really important, so people can talk to each other about what needs to get done.

“I think the people who do really well have a big picture of what goes into a restaurant, and understand and have an appreciation for what other people do. Having an understanding of what is reasonable for people to do and accomplish is so important. It’s one of the few occupations where you’re going to be talking to so many people from so many backgrounds. Being able to talk to people on their level and get them behind you is one of the most fun parts of the jobs, but it’s a really important skill set to have.”
— Trevett Hooper, chef and owner of Legume in Pittsburgh since 2007

4. Know what you’re getting into

Experience is key for restaurant success. McNally is often approached by people who want to open a restaurant but have no experience. He likes to ask them, “Why would you like to enter this industry? What makes you believe you would be successful?” Just because someone has been successful in another type of business doesn’t guarantee that those skills or successes will transfer well. Running a restaurant isn’t a job, he says; it’s a lifestyle requiring extreme hours and commitment. McNally has found that a strong management team can help an inexperienced restaurateur succeed, but those going it alone are likely to struggle.

Industry insight

“Mother’s wasn’t an overnight success. I had the idea in 1992, and everything I did for the next eight years was getting ready to open this restaurant. I had the idea while working for Weight Watchers; I knew a lot about cooking and did catering on the side. I knew I was going to get laid off, so I decided to go to cooking school so I knew the way of doing things. I paid my dues. You have to pay your dues and know every job in your restaurant; you can’t open a restaurant or get into the business without knowing how to wait tables, do some work in the kitchen or bartend. I can do any job in the restaurant; if a server doesn’t show up, I can wait tables. If the cook is out, I’m on the line. I’ve heard of restaurateurs who don’t even know what’s on their menu. Be a cook, waitress or bartender first. I did those before opening. Know what you’re getting into.”
— Lisa Schroeder, chef and owner of Mother’s Bistro & Bar in Portland, Oregon, since 2000

For more information about how to start and run a business, visit NerdWallet’s Small Business Guide. For free, personalized answers to questions about starting and financing your business, visit the Small Business section of NerdWallet’s Ask an Advisor page.

Emily Starbuck Crone is a staff writer covering personal finance for NerdWallet. Follow her on Twitter @emstarbuck and on Google+.

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