Are Childcare Centres Expensive? – All You Need to Know

Working out the cost of childcare can be incredibly tricky. However, no matter what process you undertake to calculate how much child care subsidy you are entitled to, you will always find that it turns out to be somewhat expensive. Accordingly, many people wonder why any child care subsidy calculator they use generates a costly cost for child care. 


In this article, we will explain why childcare centres are expensive by outlining the various factors that go into calculating this cost. You will have a much better understanding of what goes into these calculations by the end. So, let's get into it! 


1. Caregiver-to-Child Ratio Regulations 

In most businesses, adding clients and new business is the most effective way of increasing revenue. However, child care facilities simply can't open their doors to everyone, as they would quickly run out of resources if they did so.

Caregiver-to-child ratio regulations are put in place to ensure that every child is well attended to. These regulations enforce the law that the ratio of caregivers to children should be 1:3 or 1:4 and no more.

Labour is, therefore, one of the most significant costs incurred by childcare services and the quantity of staff required to maintain enforced ratios tends to hamper the facility's ability to generate more revenue.


2. Property and Location 

A childcare facility that operates out of a rented building has to incur the cost of renting that property. Moreover, a childcare facility can't just choose any odd location from which to operate out of, as the facility's location is vital for the clientele of childcare services.

Most parents prefer to drop their young children off at a child care facility that is not too far away and is in a safe location. An area with low road traffic, low crime rates, and low air pollution are usually thought to be ideal for a child care service. However, properties in these areas typically cost more to rent, especially those in new and well-kept buildings. 


3. Legal Counsel 

The childcare service industry has many regulations that are in place to ensure quality and safety in the care of other people's children. However, the high liability involved with childcare and complex regulations that need to be navigated constantly makes child care a somewhat confusing business to be involved in.

Moreover, there is a general lack of uniformity in federal standards for child care, and so most child care providers require outside legal counsel to help them interpret local and state regulations. As you may know, there is nothing affordable about legal counsel, which is one factor that makes child care centres so expensive. 


4. Insurance Coverage 

As you may have guessed, operating a childcare centre is an enormous liability and liability insurance is another hefty cost that child care providers have to incur. Liability insurance may eat into a childcare centre's income, but it doesn't even cover all the possible losses or damages that could occur on the property or to your employees.

Therefore, due to the high number of insurance policies needed to cover all the bases of a childcare centre, sending your child to one of these facilities tends to be rather expensive. 


Final Words 

Due to all these critical factors, the cost of childcare can seem somewhat overwhelming at first. However, these high costs are in place because many expensive factors go into creating a safe and adequately regulated environment for your children.

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