Why Do Daycare Services Cost So Much?

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Daycare services are vital for many families. Many homes now see both parents working full-time jobs in order to bring in adequate resources for the family and for personal fulfillment. However, daycare services are expensive in their own right. Yet, providers don’t actually make that much. How can that be?

In the United States, parents pay $10,000 on average for childcare every year. Some locations go even higher. If there are 40 kids in one daycare center, that’s $400,000 in revenue every year. Sounds pretty substantial, right?

Let’s take a look at the overhead costs of a childcare center. Rent, utilities, maintenance, and materials for class eat up a little over a third of that revenue, on average. That means that there is about $260,000 for wages. How many teachers does it take to wrangle 40 kids?

Quite a few. It’s a labor-intensive job and small children are unpredictable. They need constant supervision, so there have to be a lot of people working. There need to be at least three lead teachers, six assistant teachers, and a director. The remaining money just cannot cover high salaries of these educators.

For more information, check out the video in the link above.

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