this post was submitted on 24 Apr 2025
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Where is all this daycare money going? My daycare was like 8 ladies that just sat around in a playroom doing arts and crafts with us all day and took us to the pool and library in summer. They could have covered that on 2/3 kids each at 40k a year/kid. They didn't seem to be particularly well off...
Daycare workers can cost about $30/hour, if you include taxes, insurance, benefits like paid time off, etc.
A typical daycare needs about 50 hours per week of coverage, and something like 8am to 6pm is about right.
Each worker can reasonably be expected to look after 4 kids.
So with perfect staffing (no overtime pay, enrollment at a perfect whole number multiple of 4), labor costs alone would be something like $375 per kid per week. Throw in rent, insurance, food, operational costs, administrative costs including certification and licensing, furniture/equipment, utilities, etc., and it's not unreasonable for that cost to balloon to $750/week, or $39k per year.
This might give some clues: https://nwlc.org/wp-content/uploads/2024/06/Two-Pager-Understanding-Private-Equity-in-Child-Care.pdf
It’s amazing how they get away with paying so little. My field is adjacent, and I’ve been open to working with elementary age, but the positions I see as “master teacher” at daycares are usually around $9-10 an hour - what I was making working at a fast food restaurant in 2015.