So You’re Thinking About Starting Family Day Care?

This question pops up regularly in educator communities, and for good reason. Family Day Care (FDC) offers a unique and deeply rewarding career path—but like any venture, it’s important to go in informed, supported, and prepared.

Many educators are drawn to FDC for the autonomy it offers—the chance to create a learning environment that reflects your own teaching philosophy, values, and passions. For some, it’s the flexibility that appeals: being able to choose your hours, work from home (or in this case, a family-owned property), and build your work around your life—not the other way around. For others, it’s about creating more meaningful, long-term relationships with children and their families, in a setting that feels more personal and connected than a traditional centre-based service.

But it’s also a big decision. Running an FDC means becoming a small business owner as well as an educator. It means managing your own compliance, marketing, finances, and ongoing professional development. It requires resilience, strong systems, and a commitment to quality—both in the experiences you offer children and in the way you look after yourself as a professional.

That’s why these conversations are so valuable. Hearing from other educators who’ve walked this path can help you avoid common pitfalls, make more informed choices, and step into this new chapter with confidence and clarity. Every FDC journey looks different—but no one has to do it alone.

The Pros of Family Day Care

1. Deep Relationships with Children & FamiliesOne of the most cherished aspects of Family Day Care is the deep, lasting connections you form with the children in your care—and with their families. With small group sizes, you're not just supervising play; you're actively co-constructing learning journeys with each child. You’ll witness their first words, be a safe haven during hard days, and celebrate every little milestone right alongside them. Many FDC educators find they become an extension of the family—attending birthdays, graduations, and even staying in touch long after children move on to school. That sense of belonging, for both educator and child, is something truly special.

2. Autonomy & CreativityRunning your own FDC service means you have the freedom to shape your environment and program to reflect your passions and beliefs about early learning. Love nature play? You can build a program around it. Passionate about cultural inclusion, sustainable living, or child-led exploration? The possibilities are endless. You're not bound by someone else’s policies or philosophies—you get to design your day in a way that is meaningful to both you and the children. From building worm farms to running a bush kindy morning, you are the heart and soul of your curriculum, and that creative control is both empowering and professionally fulfilling.

3. FlexibilityFamily Day Care is one of the few roles in early childhood education that allows true flexibility—something that’s incredibly valuable for work-life balance, especially if you have a young family of your own or other personal commitments. You can choose your days and hours, set your own holiday periods, and adjust your offerings as your life circumstances change. Some educators choose to work term-time only, others run weekend care or before-and-after school sessions. This flexibility helps many educators maintain long, sustainable careers in early childhood—avoiding burnout by designing work around their wellbeing.

4. Income PotentialWhile it’s common to hear that early childhood education is undervalued, FDC educators have more control over their income than most. You set your own hourly rate (within regulation and coordination scheme guidelines), and many families are willing to pay more for high-quality, consistent, and individualised care—especially when delivered by a Bachelor-qualified educator. On top of that, you can design your service to offer specialised programs: school readiness, language immersion, STEM workshops, cooking classes, or outdoor education. All of these can add unique value to your service, allowing you to charge accordingly and increase your earning potential while staying true to your professional passions.

But What About the Challenges?

1. It’s a BusinessStarting a Family Day Care service means stepping into dual roles: early childhood educator and small business owner. That means you're not only responsible for providing high-quality education and care—you’ll also be managing enrolments, advertising your service, handling invoices, tracking expenses, staying on top of policies, and scrubbing the craft table after a busy day of finger painting. It’s a steep learning curve at first, especially if you’ve never run a business before. But here’s the good news: you can learn all of these skills. There are tools, templates, and communities like The Educators Well that can walk you through it step-by-step, and before long, these “extra hats” will feel like second nature.

2. It Can Be IsolatingOne of the beautiful parts of FDC is the intimate, home-like setting. But that also means some days it’s just you and the children, with no other adults around. Without intentional connection, it can become lonely—especially if you’re someone who thrives on collaboration or regular team chats. That’s why building a network is so important. Whether it’s regular catch-ups with other local educators, online support groups, or joining a mentorship circle through The Educators Well, creating opportunities for connection, debriefing, and idea-sharing is essential to stay inspired and avoid burnout.

3. Regulations & PaperworkFDC is part of the National Quality Framework, which means yes—there’s paperwork. You’ll need to document learning, keep safety checklists, track attendance, manage health and safety protocols, and prepare for assessment and rating visits. It can feel overwhelming at first, especially if you’ve never done it independently. But with good systems, planning tools, and support, it gets easier. Many educators find their rhythm over time and even come to appreciate the way documentation deepens their understanding of each child’s journey. And remember—you don’t have to do it alone. Ask for help, use templates, and lean into your coordination unit or peer mentors.

4. Work-Life BoundariesWhether your FDC is in your own home or (as in your case) a family-owned property, separating “work” from “rest” can be tricky. There will be a temptation to check your messages in the evening, reply to enquiries on the weekend, or clean and prep after hours. Over time, that can lead to emotional fatigue if left unchecked. That’s why it’s crucial to set clear boundaries: create a routine for switching off, schedule dedicated planning/admin time (so it doesn’t eat into family time), and take regular breaks—including proper holidays. A physical separation of space, even just a designated office area, can also make a big difference.

How Much Should I Charge?

For Family Day Care educators, the minimum fee that should be charged is the CCS cap of $13.24 per hour per child, which is the maximum amount families can claim through the Child Care Subsidy program. However, depending on the qualifications, experience, and the extra services you offer, there is room to charge higher rates—sometimes up to $25 per hour.

1. Qualifications and Experience:

Your qualifications and experience will determine where you sit on the fee scale. Here’s how to break it down:

• Cert III in Early Childhood Education and Care (Entry-level):As a Cert III-qualified educator, you’re meeting the minimum requirement to run an FDC service. While your base rate should be a minimum of $13.24 per hour per child for CCS families, you can charge above this cap. A reasonable range for these educators would be between $13.24 to $20 per hour, depending on location and additional services offered.

  
  

• Diploma of Early Childhood Education and Care (Intermediate qualification):With a Diploma, you can charge closer to the top of the scale, particularly if you offer specialised programs like school readiness or nature-based learning. For a Diploma-qualified educator, rates can range from $15–$22 per hour, depending on your location and expertise.

  
  

• Bachelor of Early Childhood Education (Higher qualification):Educators with a Bachelor’s degree bring a higher level of educational expertise. You can charge a much higher rate for the care and education being provided, it is not unheard of to see educators running exceptional services and specialised programs charge upwards of $25 per hour. With your qualification, you can expect to charge $18–$25 per hour per child depending on your location and expertise.

  
  

2. Experience:

Experience also plays a significant role in setting your fees. Here’s a general guide for adjusting fees based on experience:

• Entry-level Educators (0–2 years' experience):As an entry-level educator, you should charge no less than $13.24 per hour. If you’re offering additional services, like school readiness or specialty programs, you can charge $15–$18 per hour.

  
  

• Experienced Educators (3+ years’ experience):With 3+ years of experience, you have developed a strong understanding of the industry and can charge $15–$22 per hour, depending on your qualifications and services offered. Experienced educators with additional expertise in areas like nature-based learning, school readiness, or multicultural programs can push fees closer to $22 per hour.

  
  

• Highly Experienced Educators (5+ years' experience and/or additional services): Educators with 5+ years of experience can justify charging $20–$25 per hour, particularly if they offer specialised learning programs or run premium services. This range also accounts for highly experienced educators who offer bespoke services beyond basic child care, such as educational excursions, nature play, or other enrichment programs.

Additional Considerations for Setting Your Fees:

• Food and Resources:Some educators charge additional fees for meals, snacks, or educational resources, which should be factored separately. This can help ensure you’re covering costs without exceeding the CCS cap.

  
  

• Insurance and Compliance Costs:Insurance and compliance-related expenses should also be factored into your overall fee structure, even if they are separate from your hourly rate.

  
  

• Leave and Sick Days:As an FDC educator, you won’t receive paid holidays or sick days, so you’ll need to build leave savings into your fees to ensure financial stability throughout the year.

  
  

• Local Demand:Rates may fluctuate based on demand in your local area. In high-demand areas, it’s reasonable to charge the upper range of $20–$25 per hour for non-CCS services, especially if you offer unique or specialised programming.

Final Thoughts

Starting your own Family Day Care service is an exciting journey full of potential, growth, and immense reward. It's a career path that allows you to make a real difference in children’s lives, nurture their development, and build lasting relationships with families. But like any new venture, it comes with its challenges—balancing your role as educator, administrator, business owner, and more.

While it’s not always easy, FDC can be one of the most fulfilling, empowering things you’ll ever do. Being your own boss, designing your own educational environment, and watching children thrive under your care makes the hard work all worth it. Plus, the flexibility it offers allows you to build a career that suits your lifestyle, which is priceless for so many educators.

However, you don’t have to do it alone. The path to establishing a successful FDC service is smoother when you have the right support, resources, and community behind you. Whether you're navigating the practicalities of setting up your service, looking for guidance on setting your rates, or trying to manage the emotional rollercoaster of educator burnout, The Educators Well is here to support you every step of the way.

We get it—being an FDC educator can sometimes feel isolating, especially in the early days. That’s why building a network of like-minded professionals is crucial. The Educators Well offers mentorship, professional resources, and a community where you can connect, share experiences, and receive guidance whenever you need it.

If you're ready to take the leap and start your FDC service but feel unsure about certain aspects, from setting your ratesto program planning, we’re here to help. We offer personalised support to ensure that your service gets off to a great start and remains sustainable for the long term.

Want more help planning your FDC launch or setting your fees? Reach out to us! We’re dedicated to walking alongside you as you build a meaningful, successful service. We also invite you to check out our free download section on our website, where you can access valuable resources to assist you with setting your fees and much more:

Free Download Section

Remember, you are not alone—we’re here to provide support and share in your wins as you grow and thrive as an educator.