So,where is the money going? Certainly not into the pockets of those who are shaping the minds and characters of the next generation. What should be an essential,accessible service for all families has turned into a lucrative business venture,where profits overshadow the need for quality and fairness.
Loading
A simple Google search proves this. If you look up “childcare centre annual income” there are multiple websites suggesting that owning centres can be incredibly lucrative,and there are even childcare investment funds – funds where they exclusively invest in childcare centres because of how rewarding their profits are.
Having worked in the financial sector and also being someone who wants to see others fairly remunerated for the work they do,it’s challenging to reconcile the discrepancy between the high fees charged to parents and the low wages paid to these educators. I can guarantee that all parents would prefer more of their childcare fees to go directly to the educators – not to the back pockets of men who own the centre (while 97 per cent of childcare educators are female,most childcare centre shareholders are male).
When our childcare educators are on average taking home $21 an hour (approximately half the average hourly wage in Australia) it makes sense that so many are leaving the sector. It’s embarrassing that early childhood educators could earn more working in fast food or at a supermarket,and I can’t blame them for wanting to look elsewhere for work.
While acknowledging the problem is the first step towards resolving it – it’s not enough. I believe there are viable solutions to this issue,provided there is the will to implement them – and I hope after reading through this article,you’ve found that will too.
Firstly,there must be increased government oversight and intervention to ensure that educators are paid wages that reflect their qualifications,skills,and the critical nature of their work – what’s been done thus far is not enough. Subsidies and support for families should not come at the expense of decent pay for educators.
Private providers,many of whom have reaped substantial profits over the years must also step up and take responsibility. It’s imperative for these entities to reassess their business models and priorities,placing the welfare of children and educators above profit margins.
Ethical,responsible business practices can still be profitable,while also contributing positively to society – albeit perhaps that’s not in the value set of those that have benefited from the industry’s privatisation.
Lastly,as a society,we need to reassess and recalibrate how we value the profession of childcare education. It’s not merely a service;it’s an investment in the future of our children and,consequently,our nation. The first five years of a child’s life are the most pivotal in their development,and every early childhood educator knows that – it’s why they’re so passionate about caring for children and watching them develop.
They deserve fair financial compensation,but also they deserve the utmost respect,dignity and acknowledgment of the vital role they play in shaping future generations.
Victoria Devine is a former financial adviser,best-selling author,and host of finance podcast,She’s on the Money. She is also the founder and co-director of Zella Money.
- Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
For expert tips on how to save,invest and make the most of your money,delivered to your inbox every Sunday,sign up for our Real Money newsletter here.