3.2 Budgeting in Childcare

Program Budget

When creating a sustainable budget for childcare operations, it is important to plan for every day and consider strategies for anticipating and managing unexpected expenses. Due to limited funding, fee caps, or unexpected expenses, getting creative with budgets is sometimes necessary. The hope is that you are in the black, not the red! 

Ideally, bringing in stakeholders such as families, children and staff to have input on how funds are spent in the centre is a great way to understand stakeholders' priorities. It also allows ECE educators to feel heard and have input on how the centre is run. 

Funds to run a childcare centre are made up of the funding models outlined in 3.1,  parent fees, and may also include external grants and fundraising. Keeping track of incoming funding streams and ensuring they align with operating costs is critical. 

Program Costs

Consider what funding sources your centre has and what the costs are. 

Here are some expenses your program may have: 

• Program supplies (such as toys, books, paint, craft supplies, strollers, beds, sheets, cleaning supplies, garbage bags, bubbles, cleaning products, ect). 
• Food (if you provide snacks or lunches, extra food on hand for children). 
• Health and safety supplies (Cleaning supplies, gloves, fire extinguisher, first aid kits, salt for sidewalks, ect). 
• Any type of decorative items (pictures, rugs, lamps, etc). 
• Any equipment (play structures, inside and out, chairs, tables, speakers etc). 
• Any field trips or on site activities such as music, yoga, dance etc. 
• Any space rentals/lease/mortgage 
• Property taxes and any utilities (water, garbage, recycling)
• Phones and internet 
• Car lease/rental/purchase 
• Space/location maintenance 
• Milage or travel costs 
• Any consulting fees 
• Cleaning and landscaping fees (cleaning, carpet cleaning, window, powerwashing, lawn and garden care, woodchips/rocks)
• Maintenance (varies depending on context)
• Insurance costs 

• Administrative staffing 
• Advertising (for both spots and staffing)
• Business license
• Accounting and legal costs  
• Software costs for collecting fees, billing and invoicing
• Banking and credit card, or loan fees 
• Any office supplies (computers, desks, paperclips, paper, etc.)
• Any debt repayments 
• Website hosting

Human Resource Costs

Professional development funds: Ensure that you budget for professional development for your staff to continue to learn and be up-to-date on best practices. Costs include paying the facilitator, location and food. 

Professional dues or memberships: Memberships to ECEBC, professional organizations or membership to local CCRR and WorkSafeBC fees. 

Explore this free resource from Childcare ED to support you in considering your budget:

Activity 3.2 | Costing it Out

In this activity, you will consider the costs you may incur in your centre. 

1. Reflect on the costs outlined in this section, and consider what other expenses you might have that are not on that list. 
2. Consider what is important to you, your staff, families and children. Rank these priorities 1 through 10. If having extra Educators (above minimum licensing regulations) in the room is a big priority, rank that #1.
3. Is this where you are spending the money? 
4. What opportunities are there for additional funding streams? Are you accessing all the opportunities outlined in this course?