As consumers, we are not accustomed to considering value when pricing what we buy. Instead, as explained at Inc. Magazine, we think about what the cost to create a product or service, and set our expectations accordingly. If you have ever wondered about the value of your preschooler's tuition payments—including the investment in your child's future—this information will help you know where your money is going.
Cost Versus Value
People are famously bad at estimating prices and costs. That's why so many stores price their items at X dollars and 89 cents, or 99 cents: we look at the left digit and ignore the rest. If you were to estimate preschool expenses, you might consider personnel (the largest expense), rent (peninsula rents have risen 40 percent over the past year), and food for all those preschoolers' snacks, but ignore the other expenses.
Consider, though, the value of an excellent education to your family and the entire community. When communities invest in children's preschooling, all of society benefits, according to a Rand study. But how do you, personally, benefit? Your investment returns to you later, in the form of a confident, accomplished, intelligent young adult.
Overlooked Overhead
A preschool has many less obvious expenses besides employees, rent, food and finger paint. Some expenses are not the same for preschools as for other businesses:
- Safety—Everything from fire department visits to licensing, inspection and Workers Compensation premiums
- Appliances—Consider how many times a day a refrigerator in a daycare or preschool center is opened. The life of these items is much shorter due to the amount of use.
- Toys and outdoor play structures —The more loved an item is, the shorter its lifespan.
- Staff training—Preschool teachers are professionals; they must have opportunities to learn best educational practices on an ongoing basis.
- Equipment—In addition to the fun front, every preschool has a functioning business office behind the scenes.
How have you determined the value of your child’s preschool education in comparison to your cost? Kids Konnect welcomes your input in the comments section below, or just contact us. We look forward to hearing from you!