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You’ve found the perfect daycare for your child, and you’re excited to get signed up. But then, you find out that there’s a registration fee, and you’ll need to put down a deposit. Plus, you’ll also need to pay a few other random fees. Is this normal?
Yes, most daycares charge a deposit and/or registration fee. It’s very common for daycares to ask for upfront costs like these and others to cover routine expenses, say child care pros Melanie Excell, operations manager of Little Scholars School of Early Learning, and Kelly Goldberg, a former home child care owner, speech language pathologist and the current owner of Bridging Child Development.
Extra fees may seem like a lot to ask, but it’s part of a normal daycare business model, and it helps daycares cover their administrative costs. Here’s what you need to know about daycare deposit and registration fees, what other upfront costs you might incur when you sign up for daycare, how much you can expect to pay and more.
Key takeaways
Do daycares charge a registration fee or deposit?
Yes, most daycares charge a registration fee as well as a deposit. Registration fees, or enrollment fees, cover administrative paperwork, processing of documents and setting up a child’s records in the daycare’s system. Deposits are money you put down to save your child’s spot in a particular daycare. It might also serve as a way to cover any unpaid balances.
“There is really no ‘industry standard’ for any of these fees. Two programs on the same street may have different kinds of fees or different rates for the same service, and both be within their rights.”
— Kelly Goldberg, child care expert and speech language pathologist
Daycare deposit vs. registration and other fees: What’s the difference?
While the registration fee and deposit help cover administrative costs and secure your child’s spot at daycare, these aren’t the only possible upfront costs you might see. In addition to registration and deposit fees, you might come across something called a daycare waitlist fee to secure a spot on a waitlist and possibly even a daycare activity/supply fee.
Here’s a quick look at possible fees and what to expect from each.
| Fee type | What it covers | Is it refundable? |
| Daycare registration fee/enrollment fee | Covers administrative time, paperwork, processing of documents. | Not usually. |
| Daycare deposit fee | Secures your child’s spot in the daycare program. | Maybe; it’s different for each program. |
| Daycare waitlist fee | Keeps your child’s spot on a waitlist. | Not usually; in some cases, it could be rolled into the deposit or registration fee. |
| Daycare activity/supply fee | Covers expenses that may come up during the year for activities, outings and supplies. | Not usually. |
How much do daycare registration fees cost?
‘Daycare registration and deposit fees can vary widely from one program to another. For example, a standard registration fee at one daycare might be $50, while another in a different part of town charges $125. Factors like provider type, location and the age group of the child may affect these fees.
“There is really no ‘industry standard’ for any of these fees,” says Goldberg. “Two programs on the same street may have different kinds of fees or different rates for the same service, and both be within their rights.”
“All of the fees should be clearly explained in the child care handbook and that should be provided at the tour. It’s a major red flag to tour a child care (home or center) and not be provided with some kind of policy handbook and contract.”
— Kelly Goldberg
Are daycare deposit and registration fees refundable?
What if you end up backing out of your selected daycare before it starts? Will your deposit and registration fees be refunded Unfortunately, daycare deposits and registrations fees usually are not refundable.
“If you plan on withdrawing before your child begins attending, do not automatically think that all payments up front will be refundable,” says Melanie Excell, operations manager of Little Scholars School of Early Learning.
However, this may differ from one daycare center to another, and it may also differ based on which fee you are hoping to get back. “A deposit may be refunded according to particular written terms from the center, while any registration fees or other fees may not be refundable,” Excell shares. Usually, this is stated upon sign-up, so be sure to read any paperwork carefully and ask questions if you aren’t sure.
Daycare fee red flags to be aware of
Any upfront fees that a daycare charges shouldn’t come as a surprise. Here are red flags to look out for before you hand over any money to a new daycare provider.
Verbal-only charges or agreements
“All of the fees should be clearly explained in the child care handbook and that should be provided at the tour,” says Goldberg. “It’s a major red flag to tour a child care (home or center) and not be provided with some kind of policy handbook and contract.”
Undefined refund or cancellation procedures
Potential refunds on deposits and other fees should also be discussed beforehand. “Before making your payment, ask about the cancellation procedures, how much notice you must give, and if any parts of the payment can be kept by the center,” says Excell.
Unclear or rushed communication
Overall, the openness of the daycare center regarding their fees is something to take note of because it sets a precedent. “A quality child care wants a partnership with the family and is going to be very transparent about upfront fees,” says Goldberg.
