Daycare Plus More-Raising your daycare rates.

Like most other daycares, I’ve had raised my rates over the years. With the rising cost of living, it has to be done.  Parents may not like it, and sometimes you might lose a family in the process. Handling this process can be difficult and stressful, but you should never let a parent bully you into backing down. Childcare is a very valuable service. Parents depend on you to be there for their kids and you deserve to be compensated reasonably for that. Keep your rates in family childcare competitive to the cost of living and other facilities in your area.

Are you afraid of raising rates in family childcare? What are you afraid of?

Do you think your daycare parents will be mad at you? Are you worried your childcare services aren’t worth it? Do you think your clients will all quit?

It’s understandable to be reluctant when raising rates, especially if you haven’t done it before. This is a business, not a hobby. You do it for an income. You work hard every day and you deserve a living wage for that work.

Read more: Click here to see rules you should have for your daycare and here to see what payment policies you should have in place.

Childcare rate increase

Of course raising rates is your choice-it’s your business and it’s totally up to you, but if you give price breaks to families, you are really making their budget more important than yours. We, as caretakers, tend to do this, but their family is not more important than yours, are they?

You’re a caregiver and as a caregiver, we want to help everyone. We have soft hearts, but we also need to pay our bills so we won’t be stressed to the max with cut off notices. You also need to make sure you are giving the kids quality food and activity supplies. THIS COSTS MONEY! We also need to have a house and a decent car to drive.

Prices rise every year on everything. My husband does not get cost of living increases at work. He’s been at his job almost 10 years and only makes a tiny fraction more than when he started. It makes it super difficult for us to live. We are already below the poverty level.

Adding terms in your contract that rates in family childcare will be raised regularly is a good idea.  I usually do it every other year unless something comes up that I need to do it the year in between.

How to talk to parents about raising your rates in childcare

Handling breaking the news to parents in this situation doesn’t have to be hard. You shouldn’t need to tell them why, but if you feel that you do, there is a simple way to do so.

Break it Down in These 4 Simple Steps:

Explain Why

Explain to them about how your rates compare to the average providers in your area.

Document It

If you have rate increases policy in your contract (you should!) have a copy of it to show them. I phrase it, “I will raise my rates every year in January”. Simple and to the point. In January, I give out my days off for the year and I put the rates for that January on the same notice. This gives my families plenty of time to prepare.

Remind Them About You Awesome You Are

Talk to them about the great care you give their child deserves a raise just as they get raises at their jobs for excellent work.

Show Them The Numbers

Explain how a lot of your fees goes back into the daycare for expenses of supplies and food for the children and with the rise in costs in turn results in higher fees.


If you’re thinking about opening a daycare but not sure where to start, check out how to open and operate a home daycare here.

Most parents should understand about how the cost of living hits all businesses-even daycares- and if they don’t, then maybe you should rethink if they were actually a good fit for your business in the long run.