This training welcomes directors & administrators and family providers...to learn about the impact financial business practices has on improving program quality. While the information and practices in this tutorial are designed around YoungStar standards, they are appropriate for ALL early childhood programs who wish to increase their financial business practices. Participation in YoungStar is not a prerequisite to this tutorial.
We will review the 4 components related to finances in the Business & Professional Practices of YoungStar. We will offer a clear explanation of how you can create and review your budget and organize your record keeping, which may help you to increase your points. We will provide templates and resources to help you develop a budget, compare your budgeted amounts to what you actually spend and what you actually earn in income. |
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"Busy child care center directors face multiple challenges every day. Although you are focused on the children, you also run a complex business."
- Children's First Finance
Creating a strong foundation, with strong bricks, solid mortar and regular inspections is key to having a good business.
Read the following article. Simply click 'download file' and save to your computer or print. This article does not open in a new window, so you will have to click on the 'back arrow' in the upper left corner of your computer screen to go back to the tutorial.
theres_no_romance_article.pdf | |
File Size: | 43 kb |
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Self Reflection
When thinking about financing your program, it might be easier to first think about your own personal finances. Where does your income come from - paycheck, child support, disability, etc? What types of things do you purchase with that income - rent/mortgage, food, clothing, etc? Of those purchases, which amounts are the same every month and which fluctuate from month-to-month? How do you know if and when you can afford to purchase a new car or buy a new coat? How do you know when your food costs are going up or down? And when food costs do go up, how do you adjust your spending? All the things that you should think about regarding your own finances from month-to-month are the same types of things you should think about when planning your program's finances.
Every home has income and expenses, whether you write them down or not. The concept of budgeting may not be real in every household -- a plan to manage the income and expenses -- it is necessary for any successful business. Now the goal of any budget is that it balances itself ~ the amount of money that comes in, is the same as the amount that goes out. This is called a 'balanced budget'. I should not be spending more than I am making. The opposite is also true, I should account for every penny I bring in. That doesn't mean I need to spend every penny, it simply means that I know where each penny goes - to pay a bill, to purchase something new, or to put into a savings account earmarked for a larger purchase or something down the line, like a fabulous vacation! As you know, when you create a personal budget plan, only then can you "afford" to buy new things or go on that fabulous trip! The same is true with your program. You can afford to purchase new equipment or give your staff raises only when you develop a financial plan. This tutorial will help get you and your program on track toward that financial plan which then leads to financial health.
Every home has income and expenses, whether you write them down or not. The concept of budgeting may not be real in every household -- a plan to manage the income and expenses -- it is necessary for any successful business. Now the goal of any budget is that it balances itself ~ the amount of money that comes in, is the same as the amount that goes out. This is called a 'balanced budget'. I should not be spending more than I am making. The opposite is also true, I should account for every penny I bring in. That doesn't mean I need to spend every penny, it simply means that I know where each penny goes - to pay a bill, to purchase something new, or to put into a savings account earmarked for a larger purchase or something down the line, like a fabulous vacation! As you know, when you create a personal budget plan, only then can you "afford" to buy new things or go on that fabulous trip! The same is true with your program. You can afford to purchase new equipment or give your staff raises only when you develop a financial plan. This tutorial will help get you and your program on track toward that financial plan which then leads to financial health.
Next, scroll over either the Group Center or Family Provider tabs above, depending on which applies to you. Click on the dropdown menu that best suits your needs. You may want to start with "Line Item Budget" and work your way down.
Funding for this tutorial provided by Wisconsin Department of Children and Families
Disclaimer: Materials and links provided by WECA on this tutorial do not constitute legal, accounting, tax or finance advice. Participants seeking professional business advice about specific aspects of their program should consult a professional such as a lawyer, accountant, etc.