Child Care Rate Increases
For most daycare centers, September is a transition month. Older children head off to attend grade school leaving openings for new children. It is an opportune time to increase rates - new kids, new parents, new rates. But for those parents currently using the center, a rate increase may not seem fair or just. It is an unfortunate fact that daycare is expensive, costing the average family approximately 20% of their yearly income. Not an easy pill to swallow.
That cost is low, however, compared to the paucity of wages child care providers earn. It is these low wages plus a lack of benefits that, unbeknownst to parents, actually helps to subsidize their child care fees. According to the 1989 National Child Care Staffing Study, conducted by the Child Care Employee Project and Caring For A Living, The National Study on Wages and Working Conditions in Canadian Child Care, child care ranks among the 10 lowest paid jobs. Average salaries are only one-half the national median.
That translates into an hourly wage for child care teaching staff of only $5.35 per hour or $9,363 per year in the U.S., and $9.07 per hour in Canada, a fact that makes it difficult for many to remain in the profession, says the Child Care Action Campaign in their Information Guide 27, Wages and Benefits in Child Care. The turnover rate for daycare workers ranks as one of the highest.
The High Cost of Staff Turnover
"High turnover erodes the quality of care", notes the C.C.A.C. "Children need continuity in order to form trusting and loving bonds with their teachers and caregivers. But constant turnover makes that almost impossible."
Indeed, it is common knowledge within the child care profession that high staff turnover has been associated with poor developmental outcomes for children. In their statement, Why Child Care Matters, Preparing Young Children for a More Productive America, the Committee for Economic Development (C.E.D.), says that even with the increased cost of "providing care of a constant quality ... providers are hesitant to raise fees beyond what they believe parents are willing or able to pay." In essence, keeping labor costs low is the only way providers feel they can keep fees down.
Are Current Parent Fees Enough?
Do current parents' fees cover the true cost of child care? Not really. In fact, C.E.D.'s statement points out that what parents pay covers only a fraction of child care's full production cost. "Numerous subsidies, including financial and in-kind (for example, the common use of churches or community facilities for nonprofit centers), masks true production costs ..."
Factors affecting the cost of child care include:
* location;
* type of setting and program;
* age of the children (infants and toddlers generally cost more);
* the amount of funding a center is able to procure through various sources such as fundraising efforts and government sponsored programs; and
* the use of voluntary services.
The True Cost of Child Care
A U.S. analysis conducted by Barbara Willer of the National Association for the Education of Young Children (N.A.E.Y.C.), of what quality child care would cost if caregiver salaries were increased range from $6,364 to $8,345 for center-based care. That is substantially different to the $3,173 the average family currently pays.
If there is a positive note to be made of fee increases to parents, it is that despite the low wages, caregivers are dedicated to the children they serve. Most believe they can make a difference, that they can greatly enhance the quality of a child's life in daycare. One would be hard-pressed to put a price tag on that.For most daycare centers, September is a transition month. Older children head off to attend grade school leaving openings for new children. It is an opportune time to increase rates - new kids, new parents, new rates. But for those parents currently using the center, a rate increase may not seem fair or just. It is an unfortunate fact that daycare is expensive, costing the average family approximately 20% of their yearly income. Not an easy pill to swallow.
That cost is low, however, compared to the paucity of wages child care providers earn. It is these low wages plus a lack of benefits that, unbeknownst to parents, actually helps to subsidize their child care fees. According to the 1989 National Child Care Staffing Study, conducted by the Child Care Employee Project and Caring For A Living, The National Study on Wages and Working Conditions in Canadian Child Care, child care ranks among the 10 lowest paid jobs. Average salaries are only one-half the national median.
That translates into an hourly wage for child care teaching staff of only $5.35 per hour or $9,363 per year in the U.S., and $9.07 per hour in Canada, a fact that makes it difficult for many to remain in the profession, says the Child Care Action Campaign in their Information Guide 27, Wages and Benefits in Child Care. The turnover rate for daycare workers ranks as one of the highest.
The High Cost of Staff Turnover
"High turnover erodes the quality of care", notes the C.C.A.C. "Children need continuity in order to form trusting and loving bonds with their teachers and caregivers. But constant turnover makes that almost impossible."
Indeed, it is common knowledge within the child care profession that high staff turnover has been associated with poor developmental outcomes for children. In their statement, Why Child Care Matters, Preparing Young Children for a More Productive America, the Committee for Economic Development (C.E.D.), says that even with the increased cost of "providing care of a constant quality ... providers are hesitant to raise fees beyond what they believe parents are willing or able to pay." In essence, keeping labor costs low is the only way providers feel they can keep fees down.
Are Current Parent Fees Enough?
Do current parents' fees cover the true cost of child care? Not really. In fact, C.E.D.'s statement points out that what parents pay covers only a fraction of child care's full production cost. "Numerous subsidies, including financial and in-kind (for example, the common use of churches or community facilities for nonprofit centers), masks true production costs ..."
Factors affecting the cost of child care include:
* location;
* type of setting and program;
* age of the children (infants and toddlers generally cost more);
* the amount of funding a center is able to procure through various sources such as fundraising efforts and government sponsored programs; and
* the use of voluntary services.
The True Cost of Child Care
A U.S. analysis conducted by Barbara Willer of the National Association for the Education of Young Children (N.A.E.Y.C.), of what quality child care would cost if caregiver salaries were increased range from $6,364 to $8,345 for center-based care. That is substantially different to the $3,173 the average family currently pays.
If there is a positive note to be made of fee increases to parents, it is that despite the low wages, caregivers are dedicated to the children they serve. Most believe they can make a difference, that they can greatly enhance the quality of a child's life in daycare. One would be hard-pressed to put a price tag on that.