Why Can Daycare Be Expensive?

2000daysdaycare.ca understands that one of the biggest hurdles new parents face is adapting to the costs of their child’s daycare. But the amount you pay for your child’s care relates to many factors. We explore these price-driving factors to better understand the fees below.


  1. Regulations on the Caregiver to Child Ratio

Did you know that many regions regulate the number of children each caregiver can supervise? This means that the childcare center must screen and hire new employees before merely expanding their enrollment. In most regions, the ratio is one caregiver for every three to four kids. The resulting effect on employment and labour at the center makes following these regulations one of the biggest cost-driving factors.


  1. Location

Your childcare center’s location also affects fees. If the business operates out of a rented building, much of its revenue goes right back into the facility. Some cities have higher rents than others, just as neighbourhoods can vary. If you live in an expensive area and want a daycare center close to your home, you can expect that the premium on real estate will also affect the rate you must pay. Otherwise, you can drive farther from your home to another neighbourhood or town and pay lower rates.


  1. Insurance, Accounting and Legal Services

Like any business, a childcare center must appropriately insure and operate its facility. They must meet all of their region’s legal and licensing requirements, too. Then, on top of providing daily care in a safe and well-insured manner, they must keep track of their client payments and operating expenses. All of this means paying for insurance policies, one or more lawyers and an accountant. Obviously, this portion of their overhead adds to your fees.

Preschool boy with protective face mask drawing in preschool. Firts day at school after reopening during coronavirus pandemic.

  1. Employee Training

You want the best care for your child. If there is an emergency, it is critical that caregivers, teachers and other staff know how to quickly and appropriately respond. They also must have adequate education to teach kids according to the center’s curriculum. Employee training and educational requirements are a big issue toward quality care. The center must attract the right people, pay competitive salaries and train them frequently.


  1. Food, Utilities, Maintenance and Labour

When food, utility, maintenance and labour costs go up throughout the region, so does the daycare center’s cost of doing business. After all, your child’s caregiver provides meals, snacks, drinks and a comfortable environment in which they can learn and grow.


  1. Marketing Costs

Childcare centers must attract new families on an ongoing basis. Throughout the calendar year, children stop attending any school as their families relocate, stop needing care or age out of the system. Attracting families relies on adequate marketing and advertising. A childcare center must have a constantly updating website, online ads and marketing strategies and social media presence. They must also place print ads, sponsor local events and just have a phone system for incoming calls. All of this marketing work requires a designated marketing employee or consultant and the competitive salary they require.


  1. Amenities Special to Your Childcare Center

The childcare center you choose has its own unique curriculum, amenities, facilities and programs. These unique factors provide your child with an experience that differs from another facility down the street. The more your child gets to experience as part of their care, the higher the cost for the facility.

For example, if your daycare center provides transportation services, such as for taking kids to their schools and picking them up, this service adds to the center’s expenses. The center must then pay for drivers, vehicles, vehicle maintenance, fuel and auto insurance. This adds to your child’s care quality but also your monthly fee.


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