Unit 12: Financial Planning

As a family child care provider you are a self-employed small business operator. The business of providing family child care is the same as any other. You need to plan ahead to cope with ups and downs in volume and the resulting fluctuations in revenue and personal income. Unlike being an employee of someone else’s business, family child care providers cannot depend on a steady pay cheque. This can make living off the income generated from your business difficult.

Family child care revenue is dependent on many factors. Some providers charge different rates for children of different ages. Some do not get paid for days they are closed.

Reasons your revenue may fluctuate may include:

• Families leave unexpectedly and you cannot fill the space immediately
• Your children become ill and you must close for a day or two
• You suffer an injury or illness that results in temporary closure or paying a substitute to help you out
• You take holidays
• A family leaves without paying you
• Child Care children become ill and miss days
• Parents take days off, or become ill and keep their children at home.
• Parents take different holidays than you do.
• Parents go on a maternity leave and you hold the space open for them.
• Statutory holidays
• Giving discounts to families with more than one child in your care