Homepage / Money

Economy Taking Toll On Day Cares

Struggling Families Face Limited Child Care Options

The struggling U.S. economy seems to be hitting just about everyone -- even children.

As more Americans are laid off and families struggle with finances, day care is becoming a luxury some families can no longer afford. Parents are pulling kids out of day care, leaving families searching for new childcare options and day care centers struggling to stay afloat.

"We're getting reports from all over the country that attendance is going down," said Linda K. Smith, the executive director of National Association of Child Care Resource & Referral Agencies.

Jennifer Rolling, who runs a day care out of her Minnesota home, said a family who was facing economic hardship recently withdrew their children from her care. Now she's uncertain if she will be able to find new clients to fill the openings.

"I am concerned that there might not be as many families looking for care or being able to afford care at this time due to all of the layoffs going on," said Rolling, who has an average of about five kids at her day care each day.

According to Smith, day care centers make a small profit to begin with, so the loss of two to three kids can be detrimental to a center's survival. She said some child care centers are trying to keep families by lowering fees, but Smith said that is a risky move since day care providers are already some of the lowest paid workers in the U.S., making an average of $9 an hour, according to the NACCRRA director.

Cutting Costs

To survive the tough economic times, Smith suggests that day care providers reduce their spending as much as possible, as buying groceries and supplies can take away from the center's profits.

Rolling said while she's not cutting back on the food or supplies she buys for the children in her care, she has been shopping smarter.

"I've been a firm believer in coupons, especially since I started doing day care," Rolling said. "I have been paying more attention to the cost of food. You'd be surprised at how much of a cost difference there can be from store to store. A lot of times, it is worth going to a few places for the best price."

Rolling said she has also found cheaper ways to make art projects with the kids.

"I was getting a monthly curriculum sent to me. I mostly did this for the craft projects since I'm not that talented artistically," Rolling said. "I just canceled my subscription and have been using the Internet to get free craft ideas. It's amazing how many art projects there are out there."

Alternatives To Day Care

For the families that can't afford to keep sending their children to day care, their child care options may be limited.

Rolling said that the family that withdrew from her day care was going to have a grandparent watch the children which, according to Smith, is a popular alternative.

Other options Smith listed were to have neighbors or friends watch the children, which she warned can result in unstable conditions if children are watched by different people and in different locations throughout the work week.

Smith also warned against leaving your children home alone. She said some families who can't afford child care are leaving their children home to care for themselves when they might not yet be old enough to really be able to stay alone.

Effects On Kids

Losing a constant day care provider and dealing with financial struggles at home, and even possibly at a child care center, can have an effect on the children, Smith said.

"Stress is a huge issue," Smith said. "Children in these circumstances tend to take the brunt of all of this."

According to Smith, children could be put in a position where they are living with their family's financial stresses and then they could be cared for by a provider who is also under financial stress.

Smith also mentioned that children could have added stress from being bounced between different babysitters.

"I always say, consider what's going on through the eyes of a child," Smith said. "You can't have a secure child coming out of an insecure environment."

Rolling said that by early 2009 she hadn’t noticed too many changes in the emotional behavior of the kids she cares for.

"I have noticed some more insecurities in some of them, but you also have to realize that most of the children I have are under the age of four, and they are still learning to control their emotions," Rolling said. "I'm sure that their home environment plays some sort of role in their behavior. Kids are a lot more in tune with things than most adults give them credit for."

Links We Like

Sponsored Content
You don't need a gym to start a fitness plan. Try these tips on exercising by using your daily activities. More

Check out some of the most notorious police car chase scenes ever caught on tape. Don’t try this at home. More

Studies have identified several factors that increase the risk of stroke. Find out what they are here. More

TaxACT is the pioneer of completely free and fully functional federal tax preparation software. Let TaxACT work for you! More

Sponsored Links

Stock Quotes

Get a Quote
Enter Symbol

Credit Center

A Good Credit Score is Between 700-750. See yours INSTANTLY ONLINE $0 INSTANTLY ONLINE $0
The Average US Credit Score is 693. What's Yours? See it Instantly Online for $0. By Experian®
Your Credit Score Changes Often. Click Here for Your Latest Credit Score & Report.View it Online for $0.
3 People Who Check Your Credit - Landlords, Employers & Insurers. Be the 4th.See Your Credit Score & Report Now for $0.

Deal Of The Day

Best Local Rates On...