Craft a lasting legacy
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In this issue ISSUE 13 | 2023
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ALL IN THE FAMILY After you build a business, create your legacy
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IN THE CARDS CB&T’s business and commercial credit cards are tailored for entrepreneurs, organizations BANDING TOGETHER Father-and-son studio business hits all the right notes WHOLE BODY HEALTH When cancer strikes, mind and soul need treatment, too CLASS ACT Teaching diversity, character and valuable life lessons
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MONEY TALKS How to help your kids understand money
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BEST FESTS Your guide to California’s most iconic festivals
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PROTECT YOURSELF Don’t be fooled by overpayment scams
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TREND WATCH Welcome to the metaverse NEW YEAR, NEW YOU Work your way to wellness
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TAKE 5 Q&A with Christopher Considine, Director of Wealth Planning for Zions Bancorporation
PUBLISHER California Bank & Trust (CB&T)
COMMUNICATIONS OFFICER | MANAGING EDITOR Tom Stacey
MAGAZINE CONSULTANT Michelle Jacoby
EVP | DIRECTOR OF MARKETING Jathan Segur
PRODUCTION ASSISTANT Nicolle Lee
CONTRIBUTORS Aaron Berman, Sally J. Clasen, Julia De Simone, Bruce Farr, Jake Poinier, Doug Bonderud, Debra Gelbart
VP | CREATIVE DIRECTOR Ron Gligic
SENIOR DESIGNERS Nathan Joseph and Diana Ramos
In Your Corner magazine may contain trademarks or trade names owned by parties who are not affiliated with California Bank & Trust, Zions Bancorporation, N.A. or its affiliates. Use of such marks does not imply any sponsorship by or affiliation with third parties, and California Bank & Trust does not claim any ownership of or make representations about products and services offered under or associated with such marks. Articles are offered for informational purposes only and should not be construed as tax, legal, financial or business advice. Please contact a professional about your specific needs and advice.
© 2023 California Bank & Trust. All rights reserved. | A division of Zions Bancorporation, N.A. Member FDIC
After you
BY DOUG BONDERUD
build a business,
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IN YOUR CORNER ISSUE 13 | 2023
T HE MOMENT ARRIVES for every successful business owner: You start thinking about what it would be like to sell the business, name a successor and create a legacy that makes you proud. The economy is still processing the pandemic, of course, as it will be for a while. And according to data from Barlow Research, the median retirement age of small-business owners was 67 at the start of
And again, the pandemic complicated everything. Consider a recent post from the American Institute of CPSs (AICPA) which speaks to the impact of the Coronavirus Aid, Relief and Economic Security (CARES) Act. The post offers insight for CPAs conducting business valuations and recommends they consider factors such as: • Paycheck Protection Program (PPP) loans. Depending on the nature of the business and the
create your legacy
the pandemic. Survey data from the Federal Reserve Bank of St. Louis, meanwhile, describes a retirement “boom” as 2021 began. And Forbes notes that from 2020 to 2021, 62% of business owners said they hadn’t taken a vacation, and 45% said that running a business had a negative impact on their well-being. The upshot? Even as economic conditions continue to rebound and companies regain their footing, many business owners find themselves wondering if it’s time to make the move. Maybe it’s as simple as taking a step back and letting someone else take charge. Or it could mean selling your business to a friend or family member, or maybe even shuttering the company and selling off the assets. No matter the approach, however, there’s a big distance between the notion of creating a legacy you’re proud of and making this idea a reality. It’s a big step that takes careful planning. So if you’re ready, or if you’re preparing to take this step in the future, here’s your step-by-step guide to selling your business and taking the first step toward your legacy. Step 1: Calculating your business’s worth How much is your business worth? It’s not an easy question to answer. While the number in your head reflects years of time, hard work and perseverance, the market value of your business is largely dependent on external factors that fluctuate significantly over time.
timeline of a loan application, some companies may be eligible for PPP loan forgiveness, which in turn impacts their overall market valuation. • SBA Debt Relief. As noted by the AICPA, the Small Business Association (SBA) covering six months’ worth of Debt Relief Program payments has a direct impact on cash flow and net income, which may increase total valuation. • Past and future financial results. While many businesses used CARES funds during the pandemic to remain in operation, some were already on the brink of collapse before COVID challenges made it impossible to stay open. As a result, evaluation of pre-pandemic financials and the use of CARES funds must be considered to determine the potential results of future operations and in turn the value of the business. • Comparable business use of CARES Act provisions . The AICPA also recommends that accountants examine how comparable companies in the market benefitted from CARES provisions and how that impacted their bottom line. This provides a general benchmark for valuation to provide a more accurate market value. Before getting in touch with a CPA to start a formal valuation process, however, it’s worth doing some quick math yourself to get a general sense of your business value—and, if it makes sense, to start the sales process. Three calculation methods are common.
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1. The asset method The most straightforward method of evaluating fair market value, the asset method calculates value by subtracting liabilities from assets. For example, if your business has $200,000 in assets and $50,000 in liabilities, its total value is $150,000. Worth noting? The asset method effectively provides a point-in-time ballpark of business value. It doesn’t take into consideration the ongoing nature of a profitable going-concern business, which has plans for continued, profitable operations that directly increase its value. 2. The income method The income method is more complex. It requires calculating your business’ potential future economic benefit, adjusting for factors such as growth rates and cost structures, and then working backward to create current value. While it may provide a more precise representation of market value, it depends on
value ($250,000 x 2.0) to get an average market value of $500,000. Equipped with a general idea of business value, you can make the first of many decisions regarding your legacy: Is it time to sell, or is it worth reducing debt and increasing valuation to boost your business value? Step 2: Choosing your successor What happens after your business is sold? Who takes over the reins and why? Would you prefer to sell your business to a family member? An interested party with business savvy? A private equity firm? Each approach comes with pros and cons—which one works best for you depends on your financial and familial goals. Option 1: Selling to a family member If you have family members interested in running your business or have plans to keep the business under the auspices of your family at large, you may consider selling to a family member. This could be an adult child, a sibling, a niece or nephew, or even a cousin— what’s more important than their relationship to you is their willingness and ability to manage the business. For instance, if they’ve already been working with you and have demonstrated substantial business savvy, it may make sense to have them transition into your role over time. If they have other interests but you want the business to remain in the family, you may want to transfer ownership (with or without a sale), without transferring specific roles or responsibilities. Option 2: Selling to an interested party You may also choose to sell your business to an interested party. This could be a current employee or group of employees who plan to continue running the business as-is, or it could be a buyer looking to capitalize on your positive cash flow. Option 3: Selling to a private-equity or investment firm There’s also the possibility of selling your business to a private-equity or investment firm. In this case, your business may be repurposed as part of a larger investment strategy. Or it may be closed after the purchase if it directly competes with another company owned by the equity or investment firm.
accurate forecasting assumptions and is best attempted with the help of a financial professional. 3. The market method The market method is designed to be quick and easy, but it also provides a more accurate valuation than the asset method. As noted by Forbes,
With a general idea of business value, you can make the first of many decisions regarding your legacy: Is it time to sell, or is it worth reducing debt and increasing valuation to boost your business value?
it relies on current market data about the average sale
price of cash-flowing businesses in comparison to the seller’s discretionary earnings (SDE). SDE is calculated by combining the net profit on your profit and loss statement with any personal expenses, such as the purchase of health or auto insurance paid for using business funds, along with any salary you pay yourself. Here’s an example: Say your business has a net profit of $150,000 per year. You pay yourself a salary of $60,000 and spend $40,000 on documented personal and family expenses. The result is an SDE of $250,000. If the average market multiple for SDE in your area for similar businesses is 2.0, you multiply your SDE by this
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IN YOUR CORNER ISSUE 13 | 2023
Step 3: Creating a diverse financial portfolio
stressful. As you begin to exit the business, knowing you’ve got all the money- management bases covered will allow you (and your family) to sleep better at night. As a business owner accustomed to steering the ship, it may be
It’s critical to create an in-depth financial plan that prioritizes a diverse financial portfolio before you sell your business.
Before selling your business, it’s critical to lay the framework for a diverse financial portfolio. Here’s why: In the wake of your sale, your liquidity increases substantially, but the longer these assets remain in liquid form, the smaller the benefit for your legacy. It makes sense, since uninvested money isn’t paying dividends and, as the past two years have made abundantly clear, market forces could shift at any time. While it’s possible to take a wait-and-see approach with your sale, to evaluate the market in the moment and decide where your money is best invested—this comes with the dual problems of cost and complexity. Consider a recent analysis of active U.S. equity mutual funds during COVID-19 conducted by the National Bureau of Economic Research (NBER). The paper found that active investments during this time period underperformed benchmark expectations, in turn “contradicting the hypothesis that active funds outperform in recessions.” Other funds also suffered during this time period, and while rebounds are underway, market stability is no longer a given. The takeaway? It’s critical to create an in-depth financial plan that prioritizes a diverse financial portfolio before you sell your business. This allows you to streamline the transfer of liquid assets into investments with stable performance. Diversification, meanwhile, helps ensure that even if specific funds struggle, your overall portfolio remains positive. Needless to say, selling your business is likely the biggest financial/liquidity event of your life. It can get
tempting to take on this type of portfolio planning on your own. But it’s often beneficial to connect with trusted financial experts who know this territory well, understand your business and have your best interests in mind. At California Bank & Trust, our wealth planning specialists can help you develop a wealth management plan customized to your specific financing needs. Leveraging expert advice also reduces the time and effort required on your part during the sale, in turn letting you focus on what matters: Your legacy. Step 4: Considering what comes next Preparing to sell your business is a critical step in planning your legacy. From the timing of your sale to the diversification of your assets, it’s no easy task—and it’s worth taking your time to make sure everything goes to plan. But it’s also important to consider what comes next. While selling your business lays the groundwork for your legacy, well-performing investments alone aren’t enough to ensure legacy goals are met. As a result, it’s
worth mapping out a long-term view of legacy goals along with a general sense of direction: How will you leverage assets to meet these goals? What types of trust and fund distribution frameworks make sense for any children or other family members who may benefit from your legacy? How much of your wealth will be donated to charitable causes? How do you determine the optimal timing for each of these steps?
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This is the “soft” side of succession planning, but it’s also at the core of what your legacy is about, therefore it must be an integral part of your financial plan. Consider the example of a trust created for your adult children and your adolescent grandchildren. First, it’s worth establishing your overall goal: Is the plan to provide them with a lump sum of money at a specific time, or allow them discretionary access to funds with a cap each month or year? Or would you prefer a trust system that allows your children and their children to request funding for specific purposes, such as for healthcare needs, down payments on their homes, or to help put your grandchildren through college? Moreover, what (if any) stipulations would you include? For example, you might require that your children have steady and gainful employment before
they can access funds. Or you might create provisions for emergencies. No matter the approach, it’s worth creating a well-designed trust, crafted from the ground up to meet your needs and cover foreseeable circumstances—along with leaving room for additional stipulations or modifications, as needed. Taking the first step The first step in establishing your legacy? Mapping out a detailed plan to sell your business and find a successor. But this is just the beginning. To ensure the legacy you leave is the one you want—both for yourself and your family—it’s critical to avoid common missteps and make sure you’ve got the right people in place to help you achieve your legacy goals.
You can find more content like this at www.calbanktrust.com/blog
It’s worth creating a well-designed trust, crafted from the ground up to meet your needs and cover foreseeable circumstances—along with leaving room for additional stipulations or modifications, as needed.
Disclosure The information contained herein may not represent the views and opinions of California Bank & Trust, a division of Zions Bancorporation, N.A. or its affiliates. It is presented for general informational purposes only and does not constitute tax, legal or business advice.
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IN YOUR CORNER ISSUE 13 | 2023
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CLASS ACT
Teaching diversity, character and valuable life lessons BY DEBRA GELBART CREATIVE MIND PRESCHOOL
W HAT DO MULTICULTURAL enrichment, women leaders have in common? They are all emphasized at a unique preschool in east Hollywood that has rapidly developed a reputation as one of the best in the Los Angeles area. Creative Mind Preschool helps children—age 2 through pre-kindergarten age—learn about the world around them and the importance of character education and cooperation. Owner and CEO Brigitte Benchimol took over the school in 2015 when it was mutual kindness and respect, environmental sustainability, natural consequences and
faced with challenges. Although the school was licensed to accommodate 49 children, only 18 were attending. Benchimol always knew that building a diverse community was her passion and she brought that intention to Creative Mind. “It doesn’t get more diverse than this school,” she says, adding that among staff members and children, “we have more than 50 different nationalities.” Benchimol, who moved to the U.S. from her native France in 1996, switched from her first chosen profession of journalism and photography to early childhood education because she had long been drawn to teaching young children. When she had visited other preschools
IN YOUR CORNER ISSUE 13 | 2023 10
“We emphasize emotional intelligence—learning to be kind, compassionate, loving, connected and respectful.” Brigitte Benchimol Owner and CEO, Creative Mind Preschool
in the past, what struck her was how homogenous the population was. ”The first thing that comes to my mind when I see that is: Diversity needs to happen.” Making a vision a reality That message has been her inspiration since 2003, when she began to write a series of children’s books about a boy who travels around the world with the help of a magic bubble. “I realized that when we travel, it’s not always comfortable. Meeting people who are different, eating unfamiliar foods and sleeping in a different bed isn’t always comfortable,” Benchimol says. “But when we hang on and go through this discomfort, the magic happens right after that. This is how we open the minds of our children.” At the school, teachers and students regularly speak Spanish. Benchimol speaks French to French families and at least one parent observed that in five minutes onsite, he heard five different languages spoken. “This is what I want the children to see,” she says. “One world with many different nationalities.” Students who are Ukrainian, Italian, Chinese, German and Korean are among those who attend. Benchimol learned about running a successful preschool from her purchase of a small school in Chatsworth in 1999 and expanding it to the building next door. She also led another preschool in the San Fernando Valley before taking over Creative Mind. Those experiences helped her realize her dream for a preschool that teaches life lessons and character education. “We don’t emphasize learning the alphabet or numbers or colors here. Instead, we emphasize emotional intelligence—learning to be kind, compassionate, loving, connected and respectful.” This approach is one that parent Monica Rodriguez especially appreciates. Her 3-year-old daughter Brianna has been attending Creative Mind for a year. “She has learned so much about respecting others from being at this school,” she says, adding that children learn to speak up for themselves and ask questions as
teachers talk about different countries, different foods and cultures and Native American communities.
Valuable life lessons In addition to diversity and character building, Benchimol says the children also learn about sustainability. “We teach them to pay attention to our water and paper and not to waste. We became a solar facility in 2018, so we ‘walk our talk.’” Another aspect of her philosophy is teaching natural consequences. “The children know exactly what to expect. It’s a very structured school, but they have a lot of freedom,” Benchimol explains. “We don’t do timeout. If a child is not getting along with other children, they might have to play by themselves for a while until they’re ready to rejoin the group.” A typical day for the children includes plenty of playtime indoors and outdoors. After playtime is circle time, where the children might practice yoga, enjoy arts and crafts, or learn about different animals or the seasons. Each month, they also learn about a different woman “who has changed the world,” Benchimol says. Snack time focuses on fresh fruits and vegetables, and has introduced many of the children to new foods. Rodriguez says when her daughter first started attending the school, she was reluctant to eat what was packed in her lunch. “Now, because of all the new foods she has had the opportunity to try, she eats almost everything served to her,” she says. Benchimol says her long-term goal for the school is “constantly progressing and evolving according to our children’s needs.” She points out that because “it takes a village to raise a child, finding a village we love is essential not only for the well-being of our children but also our own well-being.” She is acutely aware of the responsibility she has undertaken. “I have a chance to make a difference with this generation,” Benchimol says. “I want to make the most of this opportunity.”
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WHOLE BODY HEALTH
When cancer strikes, mind and soul need treatment, too BY JAKE POINIER CANCER SUPPORT COMMUNITY OF PASADENA
S OONER OR LATER, cancer touches almost every family. When it does, you learn that a cancer diagnosis extends far beyond the walls of any hospital or clinic—and that the type of medicine required is not just for the body. Although proper medical care is a vital part of the equation, psychosocial care has been the focus of Cancer Support Community of Pasadena (CSCP), since 1990 providing support, education, and hope to anyone impacted by cancer. “You are so much more than a body—you are a mind and a soul,” says CSCP executive director Patricia Ostiller. “We supplement medical treatments
including free comedy nights with professional comedians, allowing participants to laugh and forget about cancer for a couple of hours. Several of CSCP’s programs are geared towards underserved communities, including Spanish- speakers, and a new Black support circle, facilitated by a clinician who is Black. “We know that the Black community suffers greater cancer disparities than other communities, and we’re happy to be helping to change that,” Ostiller says. Thanks to a generous flow of private donations and three annual fundraising events, all services are free to participants, regardless of socioeconomic status. “If you’re diagnosed with cancer, you may have to stop working, or you may have insurance, but with a high deductible,” says Ostiller. “Your finances are the last thing you need to be worrying about when you’re facing this devastating disease.” A healing environment The medical community has long recognized that mental health is a critical component of comprehensive cancer care. Serving more than 1,000 people a year with a staff of eight administrators and about a dozen licensed clinicians, CSCP is known as the gold standard in psychosocial care, says Ostiller. “While some hospitals might offer a monthly support group, ours are weekly, which is why our partners such as City of Hope, Dignity Health Glendale Memorial, and Huntington Hospital count on us and refer patients to us.” Other referrals come
with psychosocial care, not only for patients, but for caregivers, people who are bereaved after having lost someone to cancer, and to survivors.” To address the needs of those groups, CSCP offers a variety of ways to access their services, including professionally facilitated support groups, educational
workshops presented by oncologists and other medical experts, and one-on-one counseling. Healthy lifestyle classes help patients understand how they can eat better and manage the after-effects of chemotherapy. There are even social activities
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IN YOUR CORNER ISSUE 13 | 2023
“You are so much more
than a body— you are a mind and a soul.” Patricia Ostiller Executive Director, Cancer Support Community of Pasadena
New look, same mission In 2023, there are two major milestones ahead for the organization. The first is a name change—from Cancer Support Community Pasadena to Cancer Support Community Greater San Gabriel Valley— to better reflect their overall service area. The second is the
from local physicians, community centers, and past participants in CSCP’s programs. Ostiller notes that many participants don’t want to return to the hospital, where they might be reminded of treatments and nausea. This is why CSCP has been decorated in a home-like setting, with a living room and prints on the wall, creating a peaceful, soothing community environment. Virtual programs offer a convenient alternative to the onsite groups. About a week into the pandemic, CSCP shifted to Zoom. Now coming out of it, they offer a combination of in-person, Zoom, and hybrid options, in which some attendees are in person and others are on screen. The virtual groups help support two key audiences: patients who are too sick to drive to attend their support group, and caregivers who are unable to leave the person they are caring for. “If there is a silver lining from this pandemic, it’s the fact that we—like so many other nonprofits and businesses—learned how to provide support virtually, when we could not do it in person,” says Ostiller. “It was a little challenging for our licensed clinicians at first, looking into a camera when they’re used to being physically in the same room with people. But they quickly adapted and we had great attendance. The thing to remember is that we all felt isolated during the pandemic, but it was even more difficult for people facing cancer and who needed to be cautious because they were immunocompromised.”
move to a permanent facility in Sierra Madre that will become their new center of operations, enabled by donor contributions to make the down payment, and a loan by California Bank & Trust. The new building includes an “outdoor oasis,” where support groups can be held outside. Construction on an extensive interior remodel began in January 2023 to accommodate program delivery, with rooms for support groups, eight offices, a kitchen, an educational center, a living room and a conference room. The organization plans to be in the building and delivering programs as of July 1. “Sierra Madre has a traditional, peaceful neighborhood feel that will be good for our participants,” Ostiller says. “We’re excited to own an asset and not be leasing anymore, thanks to the generosity of the donors who stepped up. Above all, we want to be able to increase the programs we offer.”
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BANDING TOGETHER
THIRD ENCORE STUDIOS
Father-and-son studio business hits all the right notes
BY JAKE POINIER
W HEN YOU BUY TICKETS to see your by accident. Like any professional pursuit at the highest levels, the band’s two-hour performance is dwarfed by the time they spend preparing for a tour. Wynnsan Moore, president of L.A.-based Third Encore Studios, likens the process to baseball spring training. favorite band in concert, you expect an epic show. And that doesn’t happen “You can’t put a pitcher out there and say, ‘OK, go throw nine innings,’” he says. “He needs to go through the three- or four-week process of building muscle memory. It’s the same when you see the Rolling Stones up there doing 28 songs, and Mick
Jagger bouncing around at 79 years old. It took a lot of work to get there.”
Building in stages Moore’s pointed insight comes from years of experience—namely running Third Encore, a family- owned and -operated rehearsal studio in north Hollywood, a stone’s throw from the Hollywood Burbank Airport. The business launched in 1988 as a single rehearsal studio established by two road managers from the Eagles and went through several ownership changes in the ’90s. Moore—with a background as a CPA, serial entrepreneur and real estate investor—
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purchased the company in 1999. The original facility included about 30,000 square feet, with three rehearsal stages and a handful of storage lockers. Moore saw far greater potential for the concept of serving touring and recording artists in the bustling L.A. music scene. So he and his real estate partner began buying small industrial buildings and converting them into music studios known as lockouts, which developing artists and bands could rent like apartments and access 24/7. In subsequent years, they also expanded the main studio business, which features larger stages ranging from 500 to 2,400 square feet. Third Encore now owns eight buildings in the San Fernando Valley and one in Anaheim, with 265 lockout studios and seven fully equipped main studios with 70,000 square feet of total space. Riffing on success Moore’s son Alex joined Third Encore as vice president and part owner a year and half ago and, like his father, brings a background in accounting and real estate investing to the business. Focusing on the operations side of the business (while Wynnsan concentrates on financial management) also enabled Alex to develop fresh ideas to build further on the company’s reputation in the music industry. One of the opportunities was to significantly increase their equipment rentals, known as backline, with new and vintage instruments, DJ setups and in- ear systems. “Before, artists would call competitors or we would sub-rent equipment to them from one of our partners,” Alex says. “Not only have rentals improved our revenue, but we’re also providing a better, more full-service business and saving the artists money.” Alex also broadened the company’s mindset on the digital side of marketing and promotion, from improving the website to creating Google ads. “Word of mouth was always my dad’s message, and we didn’t want to be a target for fans to show up,” he says. “But in today’s day and age, if people want to find you, they’re going to.” Paving the way If anything, Alex wishes he’d been involved in the business sooner. “Honestly, I think my dad postponed way too long,” he says. “But I had a really good foundation. He guided me through my career, and we’ve been
talking about Third Encore for a long time. There was a lot of growth available, but no one to really
capture and take advantage of it.” Enjoying the
combination of mentoring and learning, along with a booming business, the elder Moore doesn’t see himself retiring anytime soon. And he is
learning about the nuances of running a family business. “Alex and I get along really well, and we spend a lot of time outside of business,” Moore says. “It can be hard to take off your ‘dad’ hat and put on your ‘business partner’ hat, and his risk tolerance is very high and mine is somewhat lower, so we have to negotiate. There’s mutual respect for each other’s skill sets, and because we both have a financial orientation, it’s easy for us to communicate ideas to each other.” Artists’ retreat Third Encore’s main studio business runs the gamut of the music world, from legendary rock bands such as the Rolling Stones, AC/DC, and the Doobie Brothers to pop star Billie Eilish and a variety of hip- hop artists. “At any point in time, we could have all seven of our studios filled with the most prominent names in the industry,” Moore says. “And it’s exciting because we also see developing artists, so it’s both sides of the market.” Artists and bands come into a Third Encore studio space for anywhere from five days to three months to rehearse for a tour or a show in a soundstage environment that replicates what they’ll encounter on the road. How long a band camps out depends on what their needs are, how long it’s been since they last toured, and changes in the lineup. “It’s more complicated than people realize,” Moore says. “Most of the artists are perfectionists—they don’t want to rest on their laurels and play the same songs the same way.”
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BY DEBRA GELBART
In the cards CB&T’s business and commercial credit cards are tailored for entrepreneurs, organizations
W HEN YOU THINK OF a business using credit cards, you may envision a company that has dozens of employees and millions of dollars in annual revenue. In reality, the right business credit card can be an advantage for a wide range of entrepreneurs and operations, from the solo entrepreneur to a medium-sized enterprise. “Our business cards are appropriate for the college student working part-time as a graphic designer who wants to keep her business expenses
for practical-minded people and is our most popular card,” Stewart says. A second option called Amazing Rewards comes with reward points. “This one appeals to customers who might want to fund something special. They’re not just adding cash back to their company’s bottom line; they’re opting for a reward with perhaps a more emotional tie,” says Stewart. For those focused on the bottom line, the third option, called Amazing Rate , carries one of the lowest interest rates CB&T offers. Clear advantages All of the CB&T business credit cards feature basic tracking, budget and cost-allocation tools, so a business owner can have an itemized and categorized list of expenses for tax purposes and to create future budgets, Stewart explains. This also allows the business owner or manager to delegate employees to make purchases on behalf of the business. “This can offer a lot of convenience and efficiency and lets you stay in control of your spending,” Stewart says, adding that credit limits for business cards are based on business revenue, not on personal income. Cash back rewards and reward points tied to business credit cards are geared toward company- focused expenses such as office supplies, capital purchases, wireless networks, internet and business travel. There is no annual fee and companies can carry a balance from month to month.
separate from her personal expenses, all the way to a medium-sized enterprise with 50 employees and $5 million in annual revenue,” explains Ian Stewart, vice president and credit card product manager for Zions Bancorporation in Salt Lake City, the parent company of CB&T. “In fact, the majority of CB&T’s business credit card customers are smaller businesses with an annual revenue of less than $250,000.” A CB&T business customer can opt for any of
“Business credit cards increase spending power to allow a growing business to invest in that growth.” Ian Stewart
Vice President and Credit Card Product
Manager, Zions Bancorporation
three different business credit cards, each designed with specific benefits and advantages. One is a cash back card called Amazing Cash and is “a good fit
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required to be paid in full each month. “One of the biggest
differences between business and commercial credit cards is that commercial cards aren’t used as a financing tool,” says Nicholson. “Instead, they’re intended as a utility for streamlined payment processing.” What does this mean for the business? Commercial credit cards are equipped with a card management system that facilitates changing credit limits in real time, and the ability to quickly
order additional cards. Card users are able to capture receipt images and code transactions right from their mobile device. The cards include sophisticated reporting tools, too. In
addition to listing transactions for the month, commercial credit cards can also identify specific transaction characteristics for auditing purposes. “Commercial cards are designed to be really scalable for the largest enterprises,” Nicholson says. “And they offer systems focusing on automating payables and integrating cards into the payables process, as well as adding on more sophisticated auditing capabilities to detect employee misuse or abuse and even fraud.” CB&T also offers consortium commercial credit cards geared toward clients in the public sector— health care, nonprofit, municipalities and schools, for example. “These clients may not have a lot of annual spending (that can be paid with a credit card), but they may need sophisticated audit and reconciliation capabilities,” he says. “Consortium customers also pool their spend with all other customers in consortium. “As a result, they can get a higher cash back rate than what they may be able to earn on their own.”
“Business credit cards increase spending power to allow a growing business to invest in that growth and give the business owner the opportunity to establish a strong credit profile, which gives you even more flexibility to borrow and invest in the business,” says Stewart. Business credit cards also offer protections against fraud, unauthorized spending by employees, and against unexpected cash flow challenges.
Commercial credit cards help large businesses
“For larger businesses where at least 20 separate purchasers in the business each need a company credit card, CB&T offers a more robust option, the commercial credit card,” says Jared Nicholson, senior vice president and division manager of Commercial Card Products and Services for Zions Bancorporation. These cards are directed toward long-established businesses that no longer need revolving credit and perhaps spend more than $500,000 annually. Balances on these cards are
Curious about which credit card product is ideal for your business? Contact your CB&T banker.
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How to help your kids understand money BY BRUCE FARR
M OST PEOPLE WOULD AGREE that these are times of confusion and insecurity about money and finances in general. But even in this perplexity, one thing is certain: Teaching kids about money and personal finance is badly neglected in the U.S. A recent survey conducted by CNBC and Momentive discovered that the majority of parents (83%) say they are responsible for teaching children about money, yet 31% say they never talk to their children about household finances. The same survey revealed that only 15% of parents said they spoke with their children more than once a week about household finances. Money in the digital age Let’s face it, money and finances have become more complicated. In decades past, it was far easier for children to learn and understand the basic concept of monetary transactions. In any number of day-to- day scenarios, they watched their parents purchase a commodity—a loaf of bread, for instance—and then pay for it with cash from their wallet. Now, however, those simple, direct transactions have been replaced by a variety of non-cash payment
functions: credit or debit cards, mobile-phone accounts and apps (e.g., Apple Pay, PayPal, Venmo, etc.). And while these modern-day forms of payment may, in fact, automate and streamline the transactional process for adults, as far as children are concerned, they tend to make it muddier and less understandable.
The same goes for the related concept of saving money and building interest on it. Surrounding the topic of financial transactions is the process of how people obtain and “grow” money. In many families, children may imagine that, at least in their parents’ hands, money is plentiful and available on demand. In less-affluent families, kids might be all-too aware of its short supply. In either case, it becomes incumbent upon parents to introduce their children to the idea of money and the activities that surround it: earning it, accumulating it, saving it and spending it. Kids’ crusader Tom Henske is a dyed-in-the-wool money and finances professional who’s betting his career on the importance
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of teaching kids about money. A certified financial planner, Henske built a successful wealth management firm in Manhattan after he recognized that no matter how smart and savvy his own children and their friends seemed to be, when it came to banking and money matters, they were seriously “unschooled.” In fact, as Henske relates from his experience as a parent and a high school soccer coach, he reached a point where he observed that most kids he came into contact with displayed a real deficit of knowledge about finances. “Recognizing that, it became my ‘crusade,’ to teach kids about money,” he says. Last year, Henske sold his business and began focusing full-time on how to teach kids about finances. He put together a plan and began speaking
to local groups about helping children learn the art of managing money. Then he wrote a step-by- step guide to teach parents and kids how to do it. The resulting book, “It Makes Total Cents,” focuses on 12 conversations that parents can have to help change their children’s financial future. “Parents avoid this conversation because it’s a little uncomfortable to talk about,” Henske says. “In years past, [family finances] was an off-limits subject in the household. For the most part, discussing money with their kids simply wasn’t done.”
Tom Henske, Certified financial planner, author of “It Makes Total Cents”
JERRI GRAHAM PHOTOGRAPHY
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In just the last few months, interest in Henske’s book and its concepts have exploded. “It’s really been mind-blowing,” he says. “It seems like I’ve struck a chord with parents who are a little embarrassed that they haven’t taught their kids about money, and—especially for the parents of younger kids—they’re worried that if they don’t focus some time on their children’s financial education, then what?”
Teach them about compound interest. “If you can get them excited about what compound interest is and how it works, that will drive everything else for them. Because once they see their money compounding in an account, they’ll also start thinking about budgeting [to increase what they can deposit into an account], which will lead to learning about investing. If you get the compound-interest lesson right, then you’re off to the races.” GISS Henske isn’t the only kids’ financial crusader. Nancy Phillips is the author of the popular Zela Wela Kids series, an inviting, neatly designed set of volumes that teach young children a variety of life skills. At least one in the series focuses on basic money management techniques for children and young adults ages five to 17, so they will be better equipped to make wise financial decisions and successfully control their financial future. In a recent podcast, Phillips, the mother of two, commented on the appropriate age to begin teaching kids about money. “We know now from extensive research that children learn their belief systems and attitudes about money at the same time as they’re learning about everything else—that is, in their formative years,” she notes. “So we have found out that children actually have their money beliefs already in place by the age of seven. That means we need to start way before that—kids as young as two or three understand [a basic transaction], that you’re giving something and getting something back.”
Pique their interest Henske believes that social media, if harnessed properly, can be a key to younger people desiring to learn about the ways and means of money management. “If you can make your kids curious about money, instead of them just glancing over those topics on whatever social media platform, they might just stop and take a look at sites, news and information about money,” he explains. Here are some suggestions from Henske on how to stimulate and nurture children’s interest in money: It’s important for kids to have money in their hands—some capital—in order to learn how to manage it. “Whether it’s from their allowance or odd jobs like babysitting or mowing lawns, we— as adults—need to teach kids how to accumulate money. Giving kids income-earning opportunities can get them to focus on purposeful work and grow their unique personal interests. And the possibilities are virtually endless.” Teach them the value of a dollar. “The way to do that is simple: Just walk around with them and ask them, ‘How much do you think this or that costs?’ ”
“Children actually have their money beliefs already in place by the age of seven. That means we need to start way before that.” Nancy Phillips Author, Zela Wela Kids
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Phillips strongly encourages teaching children the value of a dollar. “I recommend the GISS method,” she explains. “Give, invest, save, spend. Part of their allowance is to give, part is invested, part is saved, and part is theirs to spend as they wish.” Helpful resources Alongside youth-focused financial programs like Henske’s and Phillips’s, banking institutions throughout the U.S. are getting on the bandwagon to offer very accessible teaching aids to help kids of all ages improve their financial acumen. One example is the FDIC’s “Money Smart for Young People” series, which consists of free, downloadable modules that cover pre-K through high-school-age children. Each age- appropriate curriculum includes lesson plans for educators along with guides for parents and caregivers. Overarching the FDIC’s Young People series, its “Money Smart for Young Adults” curriculum is aimed at youth ages 12 to 20, guiding them through the particulars of handling their money and finances. This comprehensive tool includes the important lesson of teaching children how to create positive relationships with financial institutions. Each of the eight instructor-led modules includes an instructor guide, participant guide, and PowerPoint slides. Likewise, the American Bankers Association (ABA) recently celebrated 25 years since it launched its popular “Teach Children to Save (TCTS)” program. TCTS offers ABA member banks and their clients the opportunity to help people of all ages develop the knowledge, tools and capabilities they need to make informed decisions throughout their financial lives. At its essence, TCTS gives young people the tools and inspiration for a successful financial future. Model good behavior When it comes to the importance of teaching kids about money, financial expert and journalist Cameron Huddleston sums it up it as well as anyone. Writing in Forbes magazine, she says, “If you want your children to develop good spending and saving habits, they need to see you making smart spending and saving choices. In short, [parents must] practice what [they] preach. And preach with consistency. Educating your children about personal finance is a process that can take time. But if you put in the effort and continuously communicate a clear message about money, you will instill good habits that will serve your children well.”
Money books for kids In addition to the programs cited, there are a number of highly recommended books to help children learn some important concepts about managing their finances.
YOUNG CHILDREN
“The Berenstain Bears’ Trouble with Money” by Stan & Jay Berenstain “Money Hungry Monkey” by Paul Peters
“One Cent, Two Cent, Old Cent, New Cent: All about Money” by Bonnie Worth
“If You Made a Million” by David M. Schwar
OLDER CHILDREN
“101 Ways to Bug Your Parents” by Lee Wardlaw “Room One” by Andrew Clements “The Get Rich Club” by Dan Gutman
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BY SALLY J. CLASEN
ESTS
BIG OR SMALL, fancy or laid back, California has launched—and inspired—its fair share of outdoor festivals. With annual signature events that include music, food and the arts, you’re sure to find something to appeal to all your senses of entertainment. BEST F
MUSIC
Coachella Art & Music Festival April 14-16 and April 21-23, 2023 | Indio, California coachella.com THE NAME COACHELLA has become synonymous with the annual rite of passage when thousands travel to the Colorado Desert (part of the larger Sonoran Desert) each April to what has become a wildly popular entertainment venue. The festival started in 1999 and has become world-renowned, both for its musical star power as well as its celebrity draw. This music festival now draws more than 250,000 attendees. Located at the Empire Polo Club in Indio in the Coachella Valley, Coachella features diverse artists from rock, pop, indie, hip hop, and electronic genres, including popular and emerging acts who appear on multiple stages during the two-weekend event. No surprise, art and fashion are a big part of the Coachella vibe and provide a colorful backdrop to the festival’s musical soundtrack.
Stagecoach April 28-30, 2023 | Indio, California stagecoachfestival.com
IN 2007, PROMOTERS of Coachella introduced country music’s biggest party, Stagecoach, to its festival choices. Held the week after Coachella at the Empire Polo Club, the two-day event showcases folk, mainstream country, bluegrass, roots rock, Americana and alternative country entertainers. Considered one of the largest country music festivals in the world, Stagecoach hosts well-known country artists, as well as up-and-comers. The atmosphere at Stagecoach is an immersive country- culture experience, where celebrity chefs provide gourmet eats and attendees can take honky-tonk dance lessons, shop the marketplace and play in an amusement park.
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