Where Does the Money Go? Women's World Article 1997
Are Providers Getting Rich By Michelle Ross aka M Providers

Where do your childcare dollars go? Categories include the costs for space, insurance, supplies, food, and utilities. Those costs are fixed and have to be met no matter if the child is in a center-based program or a family childcare home. Recently many of these fixed costs have risen, but the fees still being charged have remained stable when adjusted for inflation. Many parents assume teachers and caregivers are well paid since childcare seems so expensive. However, the reality is that salaries are very inadequate for most child care workers.

A national survey found that preschool teachers in centers earned about $11,500 per year in 1990. Regulated family childcare providers reported total childcare earnings (before costs) of approximately $10,000 per year. Such salaries are extremely low even compared to those of other female dominated occupations. Good childcare is expensive. The number of children per adult must be limited, because young children need close adult attention in order to thrive.

The budget:
Liability Insurance.... $.54 cents/day (this varies by policy and state)
Homeowners Insurance.... $.45 cents/day
Vehicle Insurance.... $1.76/day (transporting children)(*Could be as high as to $6.56/day if regular transportation is included in your services!)
Health Insurance ... $$6.23/day
Utilities...$3.46/day
Toys and Educational Materials.... $2.00/day
Memberships/Dues/Renewals...$1.11/day
Groceries...$12.61/day (A portion of this is reimbursed if participating in a USDA food program. Keep in mind, however, that providers must be eligible and paperwork that must be kept for reimbursement.)
Miscellaneous Expenses (includes cleaning, paper, etc.) $4.42/day
Repairs and Home Maintenance... $24.42/day (This will vary year-to-year.

(Breaking these expenses down by category on a per day basis and using the Time/Space Allocation where applicable, the average expenses total $57.00/day for all children. In this example 8 other children can be cared for, which breaks down to $7.13/day/child. At a daily rate of $12.00/day/child this leaves $4.87/day left for the provider's time. Breaking this figure down further, the provider's time is work $4.33/hour (using a 9-hour day as a guide for 8 full-time children) providing the "labors of love" that are most definitely a requirement for daycare. When less children are cared for, that rate is reflected by an increase per child. Remember these rates do not include vacation, sick days, or additional time involved (before 8 and after 5) preparing for each and every day. The price of quality care, trust, responsibility and dependability varies among caregivers as well as the priority given to each by the parents choosing Family Daycare! Is it possible to put a price tag on these qualities?)

It sounds like Family Daycare is a lot of work and it would be easier just to get a job. Yes, some days we all wonder ourselves. Usually when we need a vacation, it is taken without pay. But we are all humans, so please respect us for recognizing the need for a break and taking it. Just like any other job, it has its ups and downs. We all remind ourselves that we are important to these kids and that we do like what we are doing. Therefore, at this point in our lives, providing Family Daycare to the best of our abilities in order to give each child the best possible environment away from home is our goal.

In closing, it is not our intent to "cry the blues" or "feel sorry for ourselves" to the point that it discourages others from entering the world of daycare. There is and always will be a need for daycare. It is an opportunity like no other that offers rewards no other job can give to us.

However, awareness to the facts is the key to succeed and success. Writing that checks each payday is not a bit of fun. We can speak from experience. The only thing that we ask from parents is to respect our policies as a commitment and not just a set of rules that they must comply with. And by committing to our policies that we are in turn committing to them also by choosing to stay home so they can go to work each day. And when payday comes and it is time to write your provider that paycheck, take a few minutes to assess in your own mind where each dollar is going, even if it includes days the children were absent. Remember if it weren't for Family Daycare, many parents would not receive that paycheck.

The happiest of people don't necessarily have the best of everything; they just make the most of everything that comes along their way.