What goes into a daycare’s monthly running costs?

Before you buy a daycare, you need to know what it costs to open the doors each month. The seller’s statements will show it, but only if you know which lines to look for and what each should look like. The categories below give you a way to read the books line by line, then check whether the picture matches the centre you visited.

Wages and cover staff

Staffing is normally the biggest category. Look at educators, supervisors, a cook if there is one, and the cost of covering sick days and breaks. Staffing requirements may apply, so confirm with your regulator. Then ask how many staff are on the schedule at each time of day, and whether the owner is working a shift that the books do not pay for.

Occupancy, food and supplies

Rent or the cost of owning the building, utilities, cleaning, meals, snacks, art supplies and learning materials all add up. If the centre rents, read the lease for the term and for how the rent can change. Ask how food is planned and bought, and which food costs, if any, are subsidised or funded, then confirm that with the regulator or program administrator.

Insurance, upkeep and admin

Insurance, repairs, playground upkeep, software, accounting and licensing costs are easy to overlook. Ask for the insurance policy and any maintenance backlog. Then compare the whole cost picture with enrolment over time, using the daycare buyer checklist. Costs that look steady while enrolment falls deserve a closer conversation with the seller.