![How to plan and track the budget of your kindergarten [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-5_024475da-9e95-4ba8-a962-363f48d4fdf3.png?v=1715856384&width=1100)
If you don’t plan and track your kindergarten budget properly, you're setting yourself up for failure.
When we developed our strategy pack for kindergarten administrators, we saw a lot of administrators struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial enrollment.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your kindergarten's finances around and set you on the path to success!
Get the budget tracker tailored for kindergartens
Most kindergarten owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for kindergartens
Here is an example of a (very) detailed budget for a kindergarten, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for kindergarten space | $4,000 | $48,000 |
| Electricity | Power consumption for classrooms and common areas | $600 | $7,200 |
| Water | Water usage | $150 | $1,800 |
| Heating | Heating for classrooms and common areas | $250 | $3,000 |
| Internet & Phone | Internet service and business phone | $100 | $1,200 |
| Waste Removal | Garbage and recycling services | $80 | $960 |
| Pest Control | Monthly pest control services | $40 | $480 |
| Insurance | Property and liability insurance | $400 | $4,800 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Head Teacher | 1 | $3,500 | $3,500 | $42,000 |
| Assistant Teachers | 3 | $2,500 | $7,500 | $90,000 |
| Support Staff | 2 | $2,000 | $4,000 | $48,000 |
| Janitor | 1 | $2,000 | $2,000 | $24,000 |
| Administrator | 1 | $3,000 | $3,000 | $36,000 |
3. Supplies & Materials
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Educational Materials | Books, learning aids, and educational toys | $500 | $6,000 |
| Art Supplies | Crayons, paints, paper, etc. | $200 | $2,400 |
| Cleaning Supplies | Detergents, sanitizers, etc. | $150 | $1,800 |
| Snacks & Beverages | Healthy snacks and drinks for children | $300 | $3,600 |
| Paper Goods | Paper towels, tissues, etc. | $100 | $1,200 |
| Classroom Furniture | Tables, chairs, storage units | $200 | $2,400 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $200 | $2,400 |
| Social Media Management | Managing social media accounts | $300 | $3,600 |
| Print Advertising | Flyers, posters, newspaper ads | $150 | $1,800 |
| Website Maintenance | Hosting, domain, updates | $80 | $960 |
| Email Marketing | Email campaigns and newsletters | $100 | $1,200 |
| Promotional Events | Open houses, community events | $150 | $1,800 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of playground and classroom equipment | $300 | $3,600 |
| Uniforms | Staff uniforms | $100 | $1,200 |
| Licenses & Permits | Health permits, educational licenses, etc. | $80 | $960 |
| Software Subscriptions | Educational software and management tools | $150 | $1,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $400 | $4,800 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Staff Training | Training programs and materials | $150 | $1,800 |
Some kindergartens make 5x more profit than you!
We have studied the strategies of the best kindergartens in the world. Replicate them now!
What are the biggest expenses for a kindergarten?
Be mindful of these key expenses. Here are five major costs every kindergarten owner needs to consider, along with some tips on how to manage them effectively.
- Educational materials and suppliesThese can take up a significant portion of your budget. You're dealing with items that need to be replenished regularly, such as art supplies, books, and learning tools. To keep these costs in check, focus on bulk purchasing, seek out discounts from suppliers, and minimize waste. It's easy to overspend by buying too many materials or opting for high-end items that don’t add enough educational value.
- The staff at your kindergartenYour staff is your foundation, but paying for their salaries, benefits, and training can be costly. This expense is always high because you need a certain number of qualified teachers and assistants to provide quality care and education. You can optimize labor costs by scheduling efficiently, cross-training staff, and monitoring productivity. However, be careful not to underpay or overwork your staff, as this can lead to high turnover and affect the quality of care.
- Rent and utilities of your kindergartenPrime locations come with high rent, but they can attract more families. Utilities like electricity, heating, and water are essential but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient appliances and lighting. Overspending often happens when you choose a location that's too large or too luxurious for your needs.
- MarketingYou need to spread the word about your kindergarten, but advertising can be expensive, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we recommend. Overspending can occur if you invest in flashy campaigns without a clear return on investment.
- Playground equipment and maintenance costsThis includes everything from playground structures to classroom furniture. These are expensive because quality equipment and regular maintenance are crucial for safety and satisfaction. Optimize by investing in durable, safe equipment and maintaining it regularly to avoid costly repairs. You can overspend by going for the latest high-tech gadgets you don’t really need.
How to spend less with your kindergarten?
Here are practical tips to help you, as a kindergarten owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Supplies | Partner with local suppliers for bulk purchases of art and craft materials at discounted rates. |
| Staff Salaries | Implement a scheduling software to optimize staff hours and reduce overtime. |
| Utilities | Install LED lighting and energy-efficient appliances to reduce electricity costs. |
| Marketing | Run social media contests for your kindergarten and collaborate with local parenting bloggers for free exposure. |
| Cleaning Supplies | Train staff on efficient use of cleaning supplies to reduce waste. |
| Equipment Maintenance | Set up a maintenance log for regular checks and servicing of playground equipment and classroom tools. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive location. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Classroom Materials | Use cost-effective, eco-friendly materials and encourage parents to donate gently used items. |
| Furniture | Purchase high-quality, durable furniture that can withstand frequent use by children. |
| Management Software | Choose a management system that offers essential features with low transaction fees and integrates with other systems. |
| Staff Training | Conduct regular in-house training sessions and use free online resources. |
| Waste Management | Implement a waste tracking system to minimize waste and encourage recycling. |
| Technology | Invest in multi-functional educational tools and utilize management software for attendance and billing. |
| Linen and Laundry | Partner with a cost-effective linen service and consider reusable napkins and tablecloths. |
| Printing Costs | Use digital communication boards or QR codes for newsletters and updates to reduce printing costs. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan field trip routes to maximize efficiency and reduce fuel costs. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital systems. |
| Inventory Management | Use inventory management software to track stock levels and reduce spoilage. |
| Pest Control | Schedule monthly pest control services and maintain cleanliness standards to prevent infestations. |
| Music and Entertainment | Use a streaming service for background music and host local performers during special events. |
| Uniforms | Choose durable, easy-to-clean uniforms for staff and offer a stipend for maintenance instead of using an external service. |
Copy the tactics of the best kindergartens in the world!
There are kindergartens that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a kindergarten
Yes, some expenses for your kindergarten are just unnecessary. They don't contribute to enhancing the learning environment or improving the children's experience.
| Kindergarten Expense | Reason It's Unnecessary |
|---|---|
| Overly Fancy Decorations | Extravagant decorations don't necessarily create a better learning environment and can strain the budget. |
| Premium Art Supplies | Unless you are running a specialized art program, most children are happy with standard supplies. |
| Excessive Toy Variety | Having too many toys can overwhelm children and increase costs without adding significant value. |
| High-End Playground Equipment | Top-of-the-line playground equipment is not always necessary and can be very expensive. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your kindergarten. |
| Multiple Uniform Styles | Having various uniform styles increases costs without adding significant value to the children's experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving care quality. |
| Premium Subscription Services | Expensive subscriptions for music or magazines often go unnoticed by children. |
| Exclusive Snacks | Using rare snacks can inflate costs and complicate supply chains. |
| Costly Furniture | High-end furniture is not always appreciated by children and can be a significant expense. |
| Custom Printed Items | Personalized items like napkins or cups are a minor detail that most children overlook, and they can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Water Brands | Most children are content with filtered tap water, making expensive bottled water unnecessary. |
| Extra Transportation Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Renovations | Constantly updating decor and layout can be costly and disrupt operations. |
| Expensive Classroom Centerpieces | Elaborate centerpieces are often ignored by children and add to the cost. |
| High-End Classroom Supplies | Luxury classroom supplies are prone to damage and expensive to replace, often going unnoticed by children. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Curriculum Designs | Frequently redesigning curriculums is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Catering Equipment | Specialized catering equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your kindergarten!
Managing a budget for a kindergarten when funds are tight can feel overwhelming. It's like being in a constant state of worry where any unexpected expense can throw everything off balance.
This ongoing pressure makes it nearly impossible to invest in new educational materials or activities, leaving you always trying to catch up with expenses. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together resources and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on increasing your revenue. More income means more opportunities for enriching the children's learning experiences and more financial stability.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of kindergartens just like yours. Get them now!
Make your kindergarten more profitable
We have studied the strategies of the best kindergartens in the world. All their tactics are explained in our pack!
