Ever thought about running a home daycare? It sounds pretty great, right? You get to work from home, set your own hours, and spend your days with cute little kids. You’re your own boss, and you’re helping families at the same time.
But before you go out and buy a bunch of toys and finger paints, let’s be real—running a daycare is not just about playtime and snacks. There are real costs, strict regulations, and some serious emotional challenges that come with it. The big question is:
Can you actually make good money doing this? And more importantly, can you do it without losing your sanity?
Can You Make Real Money Running a Home Daycare?
Short answer—yes, but it’s not as easy as it sounds. Some home daycare providers make over $6,000 a month, but that’s only after they figure out how to manage expenses, attract clients, and handle the constant surprises that come with the job.
This isn’t a “get-rich-quick” kind of hustle. It takes planning, patience, and a whole lot of energy. But if you do it right, it can be profitable and rewarding at the same time.
The Not-So-Obvious Costs of Running a Home Daycare
One of the biggest myths about home daycare? That it’s cheap to start. Spoiler alert—it’s not.
First, if you want to take care of more than just a couple of kids, you’ll need extra staff. Rules usually require one caregiver for every three or four toddlers, which means you can’t just hire your cousin and call it a day. You’ll need people who are qualified, and that means payroll costs.
Then there’s insurance. Running a daycare means liability insurance, and trust me, it’s not cheap. One provider we looked into was paying $1,200 a month—that’s nearly $15,000 a year just to cover potential accidents. But think about it—you’re responsible for a bunch of little kids, and things can happen.
And let’s not forget about the space itself. Whether you rent or own your home, you’ll need to create a safe and fun environment for kids. That means:
- A designated play area
- Enough space per child (based on local regulations)
- Possibly making changes to meet safety codes
And these aren’t small changes. One daycare owner had to drop $100,000 just to upgrade their air conditioning system to meet state requirements. Not exactly what you think about when starting a daycare, but these unexpected costs add up fast.
How to Keep Costs Down
The good news? You don’t have to go broke getting started. A lot of successful daycare owners find creative ways to cut costs, like:
- Shopping at thrift stores for furniture and toys
- Joining buy-nothing groups for free supplies
- Asking local businesses for donations
- Buying snacks, diapers, and cleaning supplies in bulk to save money
A little resourcefulness can go a long way when you’re trying to start on a budget.
The Licensing and Paperwork Headache
If you thought you could just hang a sign outside and start watching kids, think again. Running a daycare comes with a ton of paperwork and red tape.
Every state has its own rules and licensing requirements, and some take months (or even a year) to approve. Here’s what you’ll probably need:
- Background checks for you and any employees
- A home safety inspection
- Pre-licensing courses on childcare and running a business
One provider we talked to started the licensing process a full year before opening just to make sure everything was ready in time. So if you’re serious about this, start researching early so you don’t get stuck in a long waiting game.
What If You’re Not Ready for a Full Daycare?
Not sure you want to dive in headfirst? There’s another option—nanny sharing.
A nanny share is when two or more families team up to split the cost of a nanny. It’s kind of like a middle ground between working at a daycare and running your own business.
For parents, it’s cheaper than hiring a private nanny. And for the caregiver, it usually means higher pay than working at a traditional daycare. Plus, it’s less stressful because you’re looking after fewer kids at a time.
Finding families for a nanny share isn’t that hard—many people connect through parenting groups, word-of-mouth, or online nanny-share platforms.
Just make sure to have a clear contract that outlines who pays what, schedules, and responsibilities, so everything runs smoothly.
The Emotional Side of Running a Daycare
Let’s be honest—this isn’t just a business. You’re taking care of kids. And while that can be super rewarding, it can also be completely exhausting.
You’re dealing with:
- Different temperaments and personalities
- Tantrums and meltdowns
- Long hours (there’s no “clocking out” in this job)
- Parents who sometimes expect way too much
One daycare owner we talked to broke down crying outside a grocery store at midnight after a particularly tough day. Burnout is very real in this job.
So how do you avoid it? The most successful daycare owners are smart about setting boundaries:
- They have strict rules about hours and expectations
- They communicate clearly with parents so there are no surprises
- They prioritize self-care because if they burn out, the business suffers
Loving kids isn’t enough—you have to take care of yourself too, or this job will drain you.
So, Why Do People Still Do It?
Even with all the challenges, a lot of people love running a home daycare. And it’s not just about the money—it’s about making a difference.
We found daycare owners who:
- Created sliding-scale fees so low-income families could afford care
- Turned their backyards into mini nature playgrounds
- Taught kids about different cultures through music and storytelling
For many daycare owners, this is more than just a job—it’s about giving kids a safe, loving place to grow.
The Big Question: Is a Home Daycare Right for You?
We’ve covered the good, the bad, and the overwhelming parts of running a daycare. If you’re thinking about this, ask yourself:
- What kind of daycare would I want to run?
- What values would I focus on?
- How would I make it a place where kids (and I) can thrive?
Some people start daycares for the flexibility. Others are passionate about early childhood education and want to create something meaningful.
But there’s also the money side—can you actually make a good living doing this?
The truth is—it depends. Where you live, how much you charge, and how well you manage costs will all affect your earnings. Some providers struggle to break even, while others make six figures.
Final Thoughts
Running a home daycare isn’t just a side hustle—it’s a serious responsibility. It’s about balancing passion and practicality—caring for kids while also running a profitable business.
If you’re thinking about starting one, do your research, plan ahead, and be honest about the challenges.
And if you already run a daycare—what’s your best advice for someone just starting out? Let us know!
