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Why Does Childcare Seem to Cost So Much???

Posted by Rashawn Carter - Kamau on May 21, 2018 at 8:55 PM

The question always asked is "Why does childcare cost so much?". :/


Studies show that families should expect to spend about 10% of there income on childcare alone. Before the recession, parents spent about the same amount for childcare as we do today. Wages dropped as all other expenses continue to soar. This includes the cost of housing, transportation, insurance, food and gasoline. This is why the cost of childcare feels as if it has sky rocked. When it's more so that the cost of living has increased although our incomes have remained stagnate.


The cost of operating a daycare can be very expensive. Centers and group day cares have more over head then home day cares because of payroll and liability insurance. Nannies can be the most expensive because they actually come into the home giving families customized service.


When I say that I have to provide things such as food and utilities, parents may say, "You have to pay a water bill even when my child isn't there?" That is true especially if the provider lives in the house where daycare is being held. The utilities are a lot higher when daycare is out of the providers home. Our lights, water, and gas are being used 24/7. We have more lights on, more water usage, and more gas being used during the day.


Just imagine dropping your child off at daycare and the provider is using candles to light her home. That is not acceptable.:|


As much as I love working with children, I have to make a profit. Most of the time providers/owners make just enough to pay the bills. We don't always get a payroll check after expenses. Just imagine your job paying you just enough for gasoline, lunch, work clothing, and car maintenance.  
By the time you finish paying for what it cost you to make it back and forth to work, you end up with $0 left over.:(


There are some providers that charge a lot and some that charge a little. Some providers will charge less than what they should and try to take in too many children. This isn't fair to the children, to parents, or to the provider. She will become over worked. Many of these providers are always ill, stressed out, and some become bitter. No child deserves to be left in the care of that type of person. It's just not healthy.:(


I understand that the cost of childcare can seem like a lot. My first child was in a few day cares before I became a work-from-home-mother. That was almost 20 years ago. I paid more than compared to what I charge now. I try to keep my rates affordable for both the parents and myself. I can't gave quality service if I'm charging less than what my program is worth. 


Here is a list of some expenses parents money goes towards at this daycare:


Utilities, mortgage/rent, insurance, food, cleaning supplies, office supplies, lawn and gardening supplies and equipment, furniture, lots of toys, continuous replacement of all types of items damaged by children, appliances, household goods such toilet paper, cleaning supplies, storage containers, home maintenance services such as a plumber and electrician,home and yard pesticide service, fire and safety equipment and services, bedding, computer, printer, telephone service, classroom pet supplies, cell phone service, gasoline, car payment, car maintenance, property taxes, banking fees, art and craft supplies, tax service, social security,and childcare training, and licensing/certification/registration/zoning expenses.


These are expenses that I have to pay for in order to operate this daycare. I can't go without one. There are more items that I didn't include because they are extra's that I choose to have such as diapers, wipes, health products such as tooth brushes and sunscreen for the children, work uniforms, assistant payment, and health insurance.

I give families vacation time credits, no - charge for holidays we are closed, and many other perks to help give parents a break on their wallets. Childcare should not break the bank. However, it is an expense that parents should be able to budget for.  Keep in mind, the quality of care may be reflected in the cost.  Know what you can afford and what value it will get. 

I hope this list helps answers the question of "Why does childcare cost so much?



Categories: Finances , Parenting, Childcare

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