Budgeting Basics for Childcare Directors

Running a childcare center isn’t just about quality care — it’s also about financial sustainability. Directors must balance payroll, enrollment, and expenses in ways that keep centers thriving. Let’s break down three budgeting basics every director should master.

Payroll Management

Payroll often represents 60-70% of expenses in childcare. Directors must ensure ratios are met while avoiding overtime. Strategies include:

• Tracking staff hours weekly, not monthly.
• Cross-training staff so classrooms can be covered efficiently.
• Planning for substitute teachers during high-absence periods.

Enrollment Tracking

Enrollment equals revenue. Even a few empty spots add up to thousands in lost income each month. Directors should:

• Keep a rolling waitlist.
• Monitor weekly numbers and compare them against revenue goals.
• Use marketing campaigns during slow seasons to attract families.

Expense Control

Supplies, snacks, and cleaning products can balloon if not monitored. Directors should:

• Require receipts and expense reports.
• Buy in bulk where possible.
• Evaluate monthly expense reports against budget forecasts.

Tools for Success

• Childcare Management Software for tracking enrollment and payments.
• Monthly Budget Meetings with staff to review expenses.
• Forecasting Models to plan for seasonal changes.

Conclusion

Budgeting isn’t just numbers – it’s strategy. Directors who track payroll, enrollment, and expenses with discipline can keep their centers financially healthy while continuing to invest in quality care.