Home  Finance Articles  Discussion  Our Blog / Member Blogs           
SavingAdvice.com Logo Frequent Flyer Mile Credit Cards
Teaching you to Save Money

Go Back   Personal Finance Forums > Budgeting Resources > Personal Finance Articles > Babies & Kids

Babies & Kids From the cost of raising children to teaching them good money skills, you'll find it all here.

Reply
 
LinkBack Thread Tools
  #1 (permalink)  
Old 02-06-2006, 08:19 PM
jeffrey's Avatar
jeffrey jeffrey is offline
Administrator
 
Join Date: Apr 2004
Posts: 4,044
Last Blog Entry: Use Forum Points to Earn Prizes
Points: 372089.80
Donate
Default Child Care - Where Do Your Dollars Go?

By Michael Russell

In this article we're going to discuss where the money you spend on child care actually goes.

Believe it or not, for your average American family of 3 or more, child care expenses are 4th, right behind housing, food and taxes. Because child care is so expensive, the parents paying for this care think that the providers and centers themselves are rolling in dough. The sad truth is, this is just not the case. So hopefully this article will give you a pretty good idea of where your child care dollars go.




The first and probably most important part of good child care is having enough qualified people to run a child care center. The younger the children at the care center are the more people that are needed to take care of them because very young children need individual attention, unlike centers with older children that can work in groups or are even independent. It is because of this need that personnel costs at a care center can be as much as 50% or more of their total budget and operating expenses. The other 50% is taken up by space, or the rent or mortgage on the building, insurance, teaching supplies, snacks, and utilities.

Over the years these fixed costs have risen dramatically with the price of food, oil and insurance skyrocketing because of fraud, arson and other criminal activities. In spite of this, the fees that the centers charge have remained pretty much the same when adjusted for inflation. To translate that into numbers, that means that child care teachers salaries have dropped 25% since the 1970s.

The sad fact is, the salaries paid to child care workers are way below what they should be making and because of that, it is hard to find highly qualified people. In 1995 it is estimated that child care teachers earned about $15,000 per year on the average, which is not much over the poverty level. Assistant teachers were only making an average of $11,000 per year in the same time period. Even in comparison to the teaching profession in elementary schools, these salaries are considered low.

It is because of these low salaries that staff turnover at care centers is so high. This should be a concern for parents because high turnover prevents their children from getting the personalized care that they are entitled to. With high turnover the relationship between caregiver and child is usually very impersonal and cold. This is not a good environment for your child. As a result of this a child's language and social skills develop slower than with children who get proper care.

The solution to this problem is to work with government to get proper funding for these facilities and also to work with the facilities themselves. Get all the information you can about the facility in your area. Find out if the teachers have paid sick leave and benefits. If not, campaign for these things. Make your voice heard. Let those responsible for funding these facilities know that you're not satisfied with the level of care.

You may be surprised to find out that there are people in government who will listen, especially if they have children themselves.

*************
Michael Russell is your independent guide to Child Care

CopyrightCopyright Jeffrey Strain and SavingAdvice.com 2008, All Rights Reserved.
If you find anything inaccurate in this article, please email us.

Also be sure to read our disclaimer.

Reply With Quote
  #2 (permalink)  
Old 02-15-2006, 01:53 AM
Bluezy's Avatar
Bluezy Bluezy is offline
$ Saving College Sophomore
 
Join Date: May 2005
Location: Citizen of the World
Posts: 789
Last Blog Entry: New job and changes.
Points: 9005.90
Donate
Thumbs up Re: Child Care - Where Do Your Dollars Go?

The Parents Action for Children Foundation is an organization CJ's physician told me about that actively addresses child care issues in the US. Here is a link to their webite:

Parents Action for Children

This organization conducts email/letter campaigns to US senators and House Reps and has a good success rate.

Cheers!
Reply With Quote
  #3 (permalink)  
Old 06-01-2006, 02:55 PM
lukkyb22 lukkyb22 is offline
$ Saving Fourth Grader
 
Join Date: Jun 2006
Posts: 22

Points: 489.60
Donate
Default Re: Child Care - Where Do Your Dollars Go?

I went back to work when my daughter was less than a month old. The only place I could find was going to charge me $1000/mo just for her b/c they would need to hire an additional person. She is now 20 months and has a 3 1/2 yr old sister and I pay between 1300-1500/mo in childcare. Thank god it is a tax writeoff.
Reply With Quote
  #4 (permalink)  
Old 01-21-2008, 04:14 PM
jasanderson's Avatar
jasanderson jasanderson is offline
$ Saving HS Freshman
 
Join Date: Sep 2005
Posts: 122

Points: 805.00
Donate
Default

Don't you wish we could write off what we truly pay in daycare? What makes me frustrated is that we can only write off so much in daycare expenses so the people you pay to watch your children only claim this much in childcare. If I can max out at 6,000 a year for 2 kids but I'm really paying 12,000 is that fair? I have to pay taxes on all the money I make. In addition - if you use a home daycare most people can use tax deduction writeoffs on the mortgage, electricity, water and of course food unless they get assistance from the food program. I find that crazy! If I had the patience i could probably make more money than I do now.
Reply With Quote
  #5 (permalink)  
Old 01-22-2008, 09:05 PM
Joan.of.the.Arch Joan.of.the.Arch is offline
$ Saving College Junior
 
Join Date: Apr 2006
Posts: 1,171

Points: 11570.20
Donate
Default

jasanderson, I'm not understanding some of what you are saying, but a home business of child care should be entitled and subject to the same rights and responsibilities as any other home business.
Reply With Quote
  #6 (permalink)  
Old 01-24-2008, 06:39 PM
jasanderson's Avatar
jasanderson jasanderson is offline
$ Saving HS Freshman
 
Join Date: Sep 2005
Posts: 122

Points: 805.00
Donate
Default

Quote:
Originally Posted by Joan.of.the.Arch View Post
jasanderson, I'm not understanding some of what you are saying, but a home business of child care should be entitled and subject to the same rights and responsibilities as any other home business.
In my area there are several home daycares that do not claim all of the income they make. As a parent I can claim whatever I paid on my income tax return but there is a max of $6,000 per year that gets counted towards your tax deducation. A lot of daycares will offer people a slight discount to pay by cash or only claim the $6,000 when in actuality I have paid $12,000 to the daycare. The home daycare provider is only claiming a portion of what they really make - especially if they are paid in cash which can be untraceable.
Reply With Quote
Reply



Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Free Health Care Samples from Rite Care Kimmie628 Health 3 02-28-2007 04:59 AM
Free Adult & Child Movie Vouchers ~Pledge To Talk to Your Child About Not Smoking Kimmie628 Kids / Toys 1 06-16-2006 07:42 PM
Child Care ruka420 Personal Finance 2 07-07-2005 06:57 PM
child-care singinjeannie General Discussion 12 11-01-2004 02:56 AM
Child Care - Saving Money Tips jeffrey Money Saving Tips 0 10-28-2004 11:10 PM


All times are GMT -7. The time now is 03:51 PM.


Powered by vBulletin® Version 3.6.4
Copyright ©2000 - 2008, Jelsoft Enterprises Ltd.
SEO by vBSEO 3.0.0 RC6 © 2006, Crawlability, Inc.
More Links Home Loan | Debt Consolidation Loans | Refinance Home Mortgage | Finance Options | Personal Loans

About Us | Advertising | Privacy Policy | Link To Us | Related Resources | Webmasters | Media | Site Map | Contact Us

Copyright ©2002-2008 SavingAdvice.com. All rights reserved.

Please read our Disclaimer

 

Featured Sponsors
IVA uk definitive guide
Bad Credit Auto Loans
IVA Forum
IVA Book
So what is an IVA?
Private Student Loans
Online Shopping
Dell Coupons
Credit Cards
Payday Loans
moving
Student Loans
Financial News
Online IVA guide
Cash Loans
Credit Card Processing
Back to School
Payday Cash Advance Loans
Debt Consolidation Loan
Apply Now for Personal Loans IVA Advice


Partners
Budget Stretcher
DivaTribe
Thrifty Fun
Money Talk
Online Personal Budgeting
Budget Dial