Child Care Service Owners

It is difficult to determine exact salaries for child care service owners since revenue for child care centers varies according to the number of children cared for, whether the center is owned or rented, number of staff, and other factors. A center in a city with a higher cost of living and more staffing and licensing requirements will charge more than a center in a smaller town. No matter where it is located, however, a large percentage of a child care center's earnings goes to paying the staff. Child Care Aware of America found that the national average price of child care was $11,582 in 2023. Some centers charged even more, in the range of $15,000. If a center cared for 40 children and charged $11,582 per child, the center's annual budget would be $463,280. Although this sounds like a lot of money, keep in mind that staff salaries must come out of this amount, and these usually account for 60 percent to 70 percent of expenses. Seventy percent of $463,280 is $324,296, which leaves the owner with $138,984 to pay for all other expenses, such as any rent or mortgage on the center, any maintenance expenses, any food served, liability insurance premiums, and other equipment or items that are needed, such as playground equipment, paper cups, or books. After all such expenses are paid, an owner can then draw his or her salary from the $138,984.

According to the U.S. Department of Labor, in May 2023, the median annual salary for preschool and daycare education administrators, who may or may not be owners of the business, was $54,290. The top 10 percent earned more than $94,890, and the lowest 10 percent earned less than $36,550. Fifty percent of preschool and daycare education administrators earned between $44,420 and $69,350.

Since they run their own businesses, owners must pay for their own benefits, such as health insurance and retirement plans.