Child Care Experts Give Money Trouble Warning Signs
CHARLOTTE, NC - Dozens of Charlotte parents are looking for a new daycare center after their children's school closed without notice.
The Goddard School on Back Creek Road in Northeast Charlotte owes $62,000 in back rent.
"This is the only daycare he's ever known, so now we have to get him adjusted to new teachers, new friends and a new building," said Jauntae Smith, a Goddard School parent.
The property leasing manager says the school lost state funding, got behind on rent in August and never caught up.
Child care experts say there are typically cash flow warning signs before something like this happens.
Child care experts say just like any other business, there's no way to know a daycare's entire financial history. But there are questions you can ask so you're prepared if the unexpected happens.
"What's your break even budget and how many slots do you need filled for your budget to work? What percentage of your slots were filled last year," said Janet Singerman, president of Child Care Resources.
Singerman and the Better Business Bureau says there are several red flags you can look for including high teacher turnover, incentives for you to pay in full or in advance and a change in the level of care.
Singerman's best advice, always have a plan "B".
"Where can you go, who can care for your child in the event of an emergency or an unanticipated child care need," said Singerman.
The BBB says goddard school parents who paid with a credit card may have buyer protection from their credit card company.
Those who paid by cash, check or deibt card may have a tough time getting their money back.
The other nine local schools are waiving registration fees -- and march tuition for families affected by the sudden closing of the back creek road location.
CCRI’s Child Care SearcH - (704) 348-2181