Top 8 Preschool Operating Expenses You Need to Know About

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As the demand for preschools across the country continues to grow, so does a better understanding of the operating costs involved. Recent statistical information shows that the number of children enrolled in kindergartens has increased 25% in the last year alone. Understanding these costs is key to ensuring that the preschool runs efficiently and that parents receive the best possible experience. In this blog post, we’ll explore the top 8 preschool operating expenses and what they entail.

Rent / lease of the property

One of the biggest expenses for any kindergarten is the rent or lease of the property. It is essential to have an excellent location and adequate space suitable for children’s learning activities. This can easily add up to thousands of dollars per month, depending on location and property size.

Staff salaries and wages

The next major cost for any preschool is the salary bill. Teachers, teaching assistants, supervisors and other support staff should be paid competitive salaries. As such, salary costs can be considerable and they must be adequately budgeted to ensure that there is always enough money available to pay staff consistently.

Electricity and gas bills

An often overlooked operating expense for any preschool is the cost of electricity and gas bills. This can be a significant financial strain, especially if the school has a large area to light up during the dark winter months. To reduce this cost, be sure to incorporate energy efficient light bulbs and use minimal heating when needed.

Water and sewer bills

Another cost that many ignore is the combined charges of water and sewer bills. Although the cost is not as high as the rent, it is still essential to budget carefully. Water bills increase significantly, especially if the preschool provides meals for children, has multiple bathrooms, and outdoor play areas that need hydration.

Insurance premiums

Nursery schools are responsible for the safety of the children in their care. As such, good insurance coverage is a must. Preschools must have property insurance, liability coverage, and worker’s insurance. Although it may seem like an insurmountable sum at first glance, insurance coverage must be made to ensure the health and safety of children.

Office supplies

Preschools need a lot of office supplies to run properly. Teaching materials, furniture, stationery and equipment should all be included in the annual budget. This cost may also include items such as computers and printers, as the modern classroom requires various equipment and technology to provide an engaging learning environment.

Maintenance and repairs

Kindergartens need regular maintenance and repair to maintain their clean and organized image. Expenses can range from minor repairs to major maintenance such as a roof replacement. Proper and regular maintenance is essential, as it creates a favorable image and ensures that a smooth operation is taking place, providing quality care and education for parents and their children.


Cleaning and janitorial services

Last but not least, regular cleaning and janitorial expenses must be considered when operating a preschool. Maintaining a clean and healthy environment is essential for children to learn and grow.

Educational resources and equipment

The final item on our list is educational resources and equipment. These expenses are not as frequent but still significant, as they play a vital role in the learning progress of children. Preschools should provide quality educational resources, such as books, toys, and other learning materials, to help stimulate children’s growth and development.

In conclusion, understanding the operating expenses of a preschool is essential to running the school smoothly and efficiently. Taking the time to understand and budget adequately for these costs will ensure that there is more money in the bank for improvements, repairs and expansion.

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Operating Expenses

Running a preschool involves several essential costs for its smooth operations. These expenses ensure that the facility is clean, safe and well equipped, and the staff are well trained and adequately paid.

Operating Expenses Addiction
Rent / lease of the property It depends on the location and size of the facility, as well as the terms of the rental agreement.
Staff wages and salaries It depends on the number of employees, qualifications and experience.
Electricity and gas bills It depends on the size of the facility, the number of students and the use of electricity and gas for cooking, heating and lighting.
Water and sewer bills It depends on the use of the water and sewage systems.
Insurance premiums It depends on the type and level of insurance coverage which the preschool needs.
Office supplies This depends on the number of administrative staff, the level of use of office equipment and the type of supplies needed.
Maintenance and repairs It depends on the age of the building, the frequency of repairs and maintenance required, and the type of equipment that needs to be repaired.
Cleaning and janitorial services It depends on the size of the facility, the number of students and the level of cleanliness required.
Educational resources and equipment It depends on the number of students, the course of study, and the level of resources and equipment needed to support it.

As a preschool operator, managing these expenses effectively can ensure the school’s financial stability and ability to provide quality care for young children.

Rent / lease of the property

One of the biggest expenses for a preschool is the cost of renting or renting the property. The average rent or rental cost can vary greatly depending on the location and size of the property.

According to the latest statistical information, the average cost of renting or renting a property for a preschool in the United States is around ,000 to ,000 per month. However, this can increase significantly in high-cost urban areas such as New York or San Francisco, where the average rent can be ,000 to ,000 per month.

It is important for preschool operators to carefully consider the location of their property and local market rents when assessing potential operating costs to ensure they can offer competitive tuition. to parents.

When renting or leasing a property, preschool operators should also consider rental terms and associated costs, such as security deposits, utilities, and maintenance fees. It is important to negotiate favorable rental terms that fit the school’s budget and the goals of reducing the overall costs of running the school.

In addition, preschool operators should also consider the potential rent increases over the term of the lease. It is important to ensure that rent increases are reasonable and do not have a significant impact on the school’s profitability.

In addition to traditional renting or renting, some preschools may consider purchasing property. While this may provide long-term savings, it may also require a significant initial investment and the associated costs of maintaining the property may be higher than renting or leasing.

Overall, the cost of renting or renting the property is a major operating expense for preschools. Proper planning and budgeting can help ensure that these costs do not inhibit the establishment and profitability of the school.

  • Key points to remember:
  • The average rent or rental cost for a preschool in the United States is around ,000 to ,000 per month.
  • The location of the property and local rental costs should be carefully considered when assessing potential operating costs.
  • Preschool operators should negotiate favorable rental terms to reduce overall costs.
  • Buying a property can provide long-term savings, but requires a significant initial investment.
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Staff salaries and wages

When it comes to preschool operating costs, one of the biggest expenses is staff salaries and wages. This includes all teachers to janitorial staff to the administration team. According to the National Association for the Education of Young Children, the average annual salary for a primary teacher in a preschool in the United States is ,450. Meanwhile, a teacher’s aide can expect to earn around ,710 per year.

It’s important to note that these numbers are simply averages, and salaries can vary significantly based on a number of factors. For example, the location of the preschool can play a big role in determining the amount of staff payment. Areas with higher living costs, such as large cities or affluent suburbs, will generally pay their employees more in order to keep up with high expenses.

In addition, the experience and level of education of the staff can also have an impact on their salaries. Those with advanced degrees or years of experience in the field may be able to command higher salaries than those just starting out.

Another thing to consider is the type of preschool. Publicly funded schools may have tighter budget constraints than private institutions, which may impact the salaries they can offer their staff.

Overall, salaries and staff salaries can be a major expense for any preschool, especially those operating in high-cost areas. It is important to budget carefully and ensure that the compensation offered to employees is fair and aligns with industry standards. This can help attract and retain talented staff, which is crucial to providing a high quality educational experience for young children.

  • In summary:
  • The average annual salary for a lead teacher in a US preschool is ,450.
  • The average annual salary for a teacher assistant is ,710.
  • Location, experience, level of education and type of school can all impact staff salaries.
  • It is important to budget carefully and provide fair compensation in order to attract and retain talented staff.

Electricity and gas bills

Running a preschool involves a lot of expense, and one of the major costs is electricity and gas bills. According to the latest statistical information in 2021, the average electricity bill for commercial establishments in the United States is 0 per month. Meanwhile, the average gas bill for commercial establishments is around 0 per month.

The cost of electricity and gas bills for kindergartens vary depending on the size of the building, type of heating system and energy needs. For example, a preschool with limited hours of operation and a smaller building size can expect a lower bill compared to a larger preschool that operates for longer hours.

However, due to the nature of the business, kindergartens typically use more energy than a typical office or retail store. Preschools must maintain a comfortable indoor temperature, properly light classrooms, and operate various electronic devices such as computers, projectors, and air conditioning systems, all adding to the total energy consumption and bill.

The best way to manage electric and gas bills is to incorporate energy-efficient practices into the day-to-day operations of the preschool. As parents become more environmentally conscious, using green practices can also be a selling point for the school. Some tips for reducing electric and gas bills include:

  • Keep lights, computers, and other electronics turned off when not in use.
  • Install energy efficient lighting such as LED bulbs.
  • Use programmable thermostats for the heating and cooling system.
  • Switch to energy efficient appliances and systems.
  • Seal windows and doors to prevent drafts.
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These practices may require an initial investment, but it can significantly reduce your electric and gas bills in the long run. Plus, you’ll help conserve energy and help preserve the environment.

In conclusion, electricity and gas bills are one of the biggest monthly expenses for a preschool. However, by implementing energy efficient practices and investing in the right technology, it is possible to reduce costs and contribute to a greener environment.

Water and sewer bills

One of the operating costs that must be considered when running a preschool is the water and sewer bill. The cost of these utilities can vary depending on the location of the school and the amount of water and sewage used.

According to the latest statistical information available in the United States, the average cost of water and sewer bills for a preschool is around ,000 per year. However, this cost can vary greatly depending on the state and city in which the school is located.

In some states, such as California, the cost of water and sewer bills can be significantly higher due to drought conditions and the need for conservation efforts. In other states, such as Kentucky, the cost of these utilities may be lower due to an abundance of natural resources and lower population density.

It is important for preschool operators to keep a close eye on their water and sewer bills to ensure they are not being overcharged or using excessive amounts of water. Some schools may be able to save money by installing water-efficient fixtures, such as low-flow toilets and faucets.

Additionally, schools can reduce their water use by teaching students about conservation efforts and encouraging them to practice water-saving habits, such as turning off the faucet while brushing their teeth and taking shorter showers.

In conclusion, the cost of water and sewer bills is an important factor to consider when operating a preschool. By being mindful of water usage and exploring ways to reduce costs, preschool operators can better manage their operating expenses and provide a quality learning environment for their students.

  • Consider location and amount of water/wastewater used when determining costs
  • Water and sewer bills for preschools average about ,000 a year in the United States
  • Cost may vary depending on location and conservation efforts
  • Schools can cut costs by installing water-efficient light fixtures and teaching students about conservation efforts

Insurance premiums

As a preschool owner or administrator, you are well aware of the need for insurance to protect your business, employees, and students. However, the cost of insurance premiums can be a significant operating expense. According to the National Association of Insurance Commissioners, the average annual cost of nursery insurance premiums in the United States is around ,000.

Several factors influence the cost of insurance premiums for nurseries. The location of your nursery, the number of staff, the ages of the children in attendance, and the size of your facility all play a role. The type and amount of coverage you choose will also affect your insurance premiums.

  • General liability insurance provides coverage for bodily injury or property damage caused by accidents at the nursery. The average cost of this insurance is around 0 per year.
  • Property insurance covers damage to your building, equipment and other assets from covered events like fire, vandalism and theft. The average cost of this insurance is around 0 per year.
  • Workers’ compensation insurance provides coverage for employees injured on the job. The cost is based on the size of your staff and the level of risk associated with the tasks. The average cost of preschool workers’ compensation insurance is about ,000 per year.
  • Professional liability insurance (also known as errors and omissions insurance) covers claims made against your nursery due to negligence or errors made by staff members. The average cost of this insurance is around ,000 per year.
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In addition to these types of insurance, other policies may be required depending on your specific needs. For example, if your nursery provides transportation for students, you may need commercial auto insurance. If you offer after-school programs or summer camps, you may need additional liability coverage.

To reduce the cost of insurance premiums, be sure to shop around for the right insurer and the right policy. Consider increasing deductibles at lower monthly premiums. You can also implement safety protocols to reduce the risk of accidents and injuries at your nursery, which can lower the cost of insurance over time.

It is important to note that while insurance premiums may seem like high expenses, the cost of being uninsured or underinsured can be much higher if an accident or lawsuit occurs. Investing in adequate insurance coverage is a crucial part of protecting the financial security of your nursery and ensuring the safety of your staff and students.

Office supplies

Office supplies are essential for running a preschool. It includes the materials and equipment necessary for the daily operations of the institution. These supplies range from pens and papers to computers and printers. The cost of office supplies can add up quickly, so budgeting for them is essential.

According to the National Association of Elementary School Principals, the average cost of office supplies in preschools is about 0 per year per classroom. This figure may vary depending on the location and size of the school.

Office supplies can be divided into two categories: consumables and non-consumables. Consumables are items that need to be replenished regularly, such as paper, pens, and toner. Unconsumed items are items that do not need to be replaced frequently, such as computers, printers, and desks.

The cost of consumables varies greatly depending on frequency of use and number of students. One way to save on consumables is to buy in bulk. Schools can also use generic brands instead of brands. This can significantly reduce the cost of office supplies.

Non-consumables, on the other hand, are more expensive and have a longer lifespan. However, they must also be replaced by being replaced. To save on non-consumables, schools can choose to rent equipment instead of buying it. Schools may also choose to use second-hand equipment, provided it is in good working order.

In conclusion, proper budgeting and purchasing strategies can help reduce the cost of office supplies in preschools. Schools should also regularly assess their needs to determine which supplies are needed and which are not.

  • Office supplies are essential for running a preschool.
  • The cost of office supplies in preschools is about 0 per year per class.
  • Office supplies can be divided into consumables and non-consumables.
  • Buying in bulk and using generic brands can help save on consumables.
  • Renting equipment or using used equipment can help save on non-consumables.

Maintenance and repairs

Maintaining a safe and clean environment for young children in a preschool is of utmost importance. This not only ensures the health and well-being of the children, but also helps maintain the reputation of the school. However, maintenance and repairs come at a cost, and this is a considerable expense for any preschool. According to the latest statistical information, the average cost of maintenance and repairs in a preschool in the United States is around ,000 per year.

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The cost of maintenance and repairs includes everything from cleaning supplies to furniture repairs to major infrastructure repairs. Kindergartens must ensure that the building and its equipment meet strict safety standards. Therefore, it is important to allocate sufficient funds in the school budget for maintenance and repair expenses.

Maintenance and repair costs vary depending on the size of the school, the age of the building and the number of children enrolled. Schools that have higher enrollment numbers or are housed in older buildings may incur higher maintenance and repair costs. In addition, the frequency of repairs and the urgency of repairs determine the amount spent on them.

  • Cleaning and Sanitation : A clean and hygienic environment is the cornerstone of any preschool. Schools should maintain clean and selfless classrooms, restrooms and rest areas to keep children healthy. The costs of cleaning supplies, staff, and specialized equipment can add up quickly.
  • Equipment and Furniture : Preschools need a variety of specialized equipment and furniture to cater to young children. These include high chairs, cribs, changing tables, etc. Regular maintenance and repairs to these items are necessary to ensure their longevity and safety. The replacement of equipment and furniture is also an additional cost for preschools.
  • Structural Repairs : Preschools must adhere to building codes and regulations regarding infrastructure. The cost of repairs, such as painting, roofing, electrical and plumbing work, etc. can be important.

In conclusion, maintenance and repairs are crucial running costs for any kindergarten. These expenses ensure that the school operates in a safe and clean environment, which is essential for the health and well-being of children. Therefore, preschools need to allocate these costs in their budgets to avoid unexpected expenses and maintain their reputation.

Cleaning and janitorial services

One of the biggest expenses that comes with running a preschool is related to cleaning and janitorial services. Maintaining a childcare facility is crucial, not only for hygiene and sanitation purposes, but also to make the premises attractive to potential customers. So how much does it cost to maintain a clean preschool?

According to recently released statistics, the typical cost of hiring janitorial services for a preschool would range from .07 to .22 per square foot. Since most nurseries are relatively small, the average expense of hiring professional cleaning crews would cost around 0 to 0 per week or around 0 to 00 per month.

It is important to note that costs can vary depending on the size of the property, the frequency of cleaning and the type of cleaning services provided. For example, some kindergartens require only basic cleaning services such as carpet vacuuming, floor mopping, and trash removal. On the other hand, others may also need additional services like disinfecting toys and surfaces, wiping walls and cleaning air ducts, to mention a few.

Another important factor to consider is whether the school chooses to employ in-house janitors or outsource to a professional cleaning company. Hiring internal staff usually means additional expenses such as payroll taxes, benefits, and equipment supplies. Thus, outsourcing to professional cleaning services may be a more viable option.

Overall, establishing a cleaning and maintenance schedule is crucial to ensure that the preschool stays clean, organized, and visually appealing to parents and children. This boosts the school’s reputation, promotes health and safety, and helps retain and attract customers.

Here are some tips to reduce cleaning costs:

  • Establish policies that encourage children and parents to remove their shoes before entering kindergarten to minimize dirt and mud stains on carpets and floors.
  • Implement a regular maintenance schedule to ensure that facility upkeep and repairs are supported.
  • Encourage staff members and parents to keep the premises clean and organized by providing waste bins, tissues and other cleaning supplies in easily accessible places.
  • Consider buying cleaning equipment and supplies in bulk to save costs.
  • Hire professional nursery cleaning services to ensure the highest quality of care.
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Educational resources and equipment

Preschools need a variety of resources and equipment to provide children with the best educational experience. According to the National Association for the Education of Young Children (NAEYC), the average cost of resources and equipment for a preschool classroom is about ,500 per year.

This equipment includes everything from books, puzzles and educational games to art supplies, sensory materials and classroom furniture. These items require regular regeneration and replacement, adding to the overall cost of running a preschool.

One of the main factors behind the high cost of educational resources and equipment is the constant need to stay up to date with the latest teaching trends and methods. With technology advancing rapidly, schools need to invest in new software, devices and equipment on a regular basis. This can significantly increase the annual cost of providing quality education to children.

Another significant expense is the need for specialized equipment and resources for children with special needs. This equipment can range from adaptive communication devices to specialized seating and mobility aids. Schools should provide these resources to ensure that every child receives the best educational experience possible.

Despite the high cost, investing in quality educational resources and equipment is critical to preschool success. Studies have shown that high quality equipment and resources can have a significant impact on a child’s social, cognitive and emotional development.

To ensure that the school stays within budget while providing quality education, it is essential to source resources from multiple providers and compare prices. In addition, schools must repair and maintain equipment regularly to ensure its longevity.

  • In conclusion, the cost of educational resources and equipment is an important factor in the overall operating costs of a preschool. Keeping up to date with the latest technologies and teaching methods requires regular investment in new equipment and resources.
  • However, these investments are essential to provide children with a high quality education and ensure their social, cognitive and emotional development.


Running a preschool requires significant planning and budgeting. By taking the time to understand the expenses involved, you can make informed decisions and ensure your preschool runs efficiently. Remember that the eight operating expenses we have discussed are not exhaustive, but they are some of the most important costs. To summarize, here are the eight expenses:

  • Rent / lease of the property
  • Staff wages and salaries
  • Electricity and gas bills
  • Water and sewer bills
  • Insurance premiums
  • Office supplies
  • Maintenance and repairs
  • Cleaning and janitorial services
  • Educational resources and equipment

As the demand for preschools continues to grow, so does a better understanding of the expense of running one. With a comprehensive budget plan and effective management practices, you can keep your operating costs under control.

Keep in mind that these expenses can vary depending on location, size, and other factors, but hopefully this article will provide some insight into the significant costs of running a preschool. By staying on top of these expenses, you can provide a safe, clean environment for young children to learn and grow while giving parents peace of mind.