Building an Emergency Fund: A Simple Step Every Childcare Program Can Take.
- Jessica Stewart
- Feb 6
- 3 min read
Updated: Feb 13
Running a childcare program means juggling a thousand priorities at once — and emergencies never seem to wait for a “good” time.
A water heater fails.A roof starts leaking.Enrollment dips unexpectedly.
None of these situations are rare, yet many programs still find themselves scrambling when they happen.
From Reacting to Planning
One of the most important shifts leaders can make is moving from reacting to planning. Financial sustainability isn’t about having unlimited resources — it’s about building systems that help your program absorb the unexpected.
In From Overwhelmed to “I Got This,” Kate Woodward Young and Carrie Casey emphasize the importance of understanding your numbers and planning for enrollment changes and unexpected expenses as part of strong, confident leadership (Young & Casey, 2025).
That message matters because emergencies don’t turn into crises when there’s a plan in place.
Why an Emergency Fund Matters
Building an emergency fund for childcare programs is one of the most effective ways to strengthen long-term financial stability and reduce stress during unexpected situations.
An emergency fund gives you breathing room. It allows you to respond calmly instead of making rushed decisions under pressure.
Start Small, Stay Consistent
Building an Emergency Fund for Childcare Programs
Building an emergency fund does not require a large lump sum or a perfect budget. It requires consistency.
Instead of waiting until there is “extra” money left at the end of the month (which rarely happens), programs can commit to setting aside a fixed amount each week. Even $50–$100 saved consistently creates momentum.
Over time, that fund becomes a buffer — one that protects:
your program
your staff
the families who rely on you
What an Emergency Fund Can Be Used For
An emergency fund can help cover:
Unexpected building or equipment repairs
Temporary enrollment loss
Staffing gaps or short-term coverage needs
Delayed payments or cash flow disruptions
Having money intentionally set aside allows leaders to make thoughtful, steady decisions instead of reactive ones.
A Quick Task You Can Do This Week
Set aside 10 minutes and answer these three questions:
What is one realistic amount your program could set aside each week right now?
Where will this money be kept so it doesn’t get absorbed into daily operating expenses?
What types of situations will this fund be reserved for?
Write your answers down. Make the decision visible.
Even small steps taken consistently can dramatically reduce stress when the unexpected happens.
Strong leadership isn’t about reacting faster. It’s about planning ahead so emergencies don’t derail the mission you’ve worked so hard to build.
Want Help Turning This Idea into a Clear, Actionable Plan?
The Child Care Emergency Fund Toolkit walks you step-by-step through building a realistic emergency fund, so unexpected expenses don’t turn into financial crises.
Recommended Reading
For directors who enjoy deeper reflection and leadership development, From Overwhelmed to “I Got This” by Kate Woodward Young and Carrie Casey is a thoughtful resource many leaders find valuable.
👉 View book on Amazon:https://a.co/d/86W6I87
Looking for a more complete financial system?
Explore the Director's Financial Safety Net Bundle to build long-term stability beyond emergencies.
Reference
Young, K. W., & Casey, C. (2025). From overwhelmed to “I got this”: Guaranteed success route to directing your childcare center. CEY Press.
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