Article Link: http://exchangepress.com/article/five-fundamentals-of-financial-health/5014907/
When child care centers are in poor financial health, the quality of care for children can decline, affecting their future success as students and, eventually, as employees. Research demonstrates that by the time children are in second grade, those who attended high quality child care centers have better academic and social skills than children from low quality centers. In addition, the benefits of high quality child care affect children from all socioeconomic backgrounds, including families with both high and low income.In our list of Building Blocks in a Foundation of Financial Health we name at least 40 indicators of good financial management for child care programs, but five stand out as fundamental to a program's financial health (see sidebar on page 9). To illustrate these fundamentals, we've used stories that are compilations of experiences in real programs, but none of the following profiles represent actual, individual, child care centers.
Enrollment is at Capacity, With a Waiting List in Place
Child care centers operate on a tight budget. High quality care is labor-intensive, and requires well-equipped, well-maintained, and spacious facilities. The income adequate to support quality, whether obtained from private-pay families or from public subsidy, is dependent on enrollment. When centers don't consider seasonal ...