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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 parents paid an annual average of between $9,000 and $9,600 nationwide for the care of a four-year-old at a child care center in 2017. Some centers charged even more, in the range of $15,000. If a center cared for 54 children and charged $4,000 per child, the center's annual budget would be $486,000. 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 $486,000 is $340,200, which leaves the owner with $145,800 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 $145,800.

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