Working from home sounds like a dream come true for many parents. But is opening a home daycare the best financial decision for you. In this blog post, we will discuss the average home daycare salary and whether or not it’s a good business for your family.
Home daycare is a business that has been around for decades. Most home daycare providers are stay-at-home parents, looking to contribute to the household income. But many teachers have also become home daycare providers.
If you’re considering opening up your own home daycare, here’s what you need to know:
The average annual salary of a home daycare provider can range vastly. Your potential income will depend on your location, licensing requirements of your area and turnover of families. And can fluctuate monthly.
So, how much money does a home daycare provider make?
Before we can answer this question we need to consider some costs.
Cost Considerations when running a home daycare
While start-up costs for a home daycare are low, there are some purchases you will need to make. As well as, you may need to take courses or complete training before applying for licensing.
- Licensing $150–200 per year, plus $25 to apply. In some states require that all daycares are licensed and inspected annually. This annual fee you must pay in addition to your local business license $150
- Furniture for children’s rooms and play areas
- Extra training courses, such as CPR certification or first aid classes. These can vary in cost from free to a few hundred dollars depending on your state requirements. If you plan on caring for more than three children, then you may need to attend a six-hour training course – up to $400
- Safety supplies and items such as fire extinguishers and baby gates $200
These costs will need to be paid before your first paycheck.
These are some monthly costs that you will need to deduct from your monthly revenue.
- Internet and or cable (optional) $30–40 per month
- Cell phone and smartphone for business use (optional) $20 per month
- Daycare business insurance (optional, but highly recommend) $75–150 per month
- Food for the children – varies
- Supplies, including toys, games and craft supplies – varies
The potential yearly salary for home daycare providers depend on various factors
- The average cost of care in your area
- How many kids do you have in your care at one time?
- Your monthly and yearly expenses
Here are two different example scenarios
The average price for full-time care in your area is $700/per month. You are only allowed to have 5 kids in your care at one time. Assuming you have the max number of kids, your potential yearly salary would be
$700 x 5 children = $3,500 per month (before expenses)
$3,500 x 12 months = $42,000 per year.
The average price for full-time care in your area is $500/per month. You are only allowed to have 5 kids in your care at one time. Assuming you have the max number of kids, your potential yearly salary would be
$500 x 5 children = $2,500 per month (before expenses)
$2,500 x 12 months = $30,000 per year.
Not too bad right? But the likelihood that you are going to have all full-time kids and be full all the time is low. Running a home daycare is unpredictable. You are not guaranteed the same income every month. You will lose families and take on new families throughout the year.