Daycare Tuition Increase Letter to Parents - Free Template


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If you own or are planning to open a daycare business, you can make good money; however, part of this business means occasionally raising your fees and sending tuition increase letters to parents. For a lot of parents, this won't be welcome news, so it’s important to word your daycare tuition increase letter to parents carefully. 

The childcare industry in the United States is currently worth  and as the cost of living rises in the United States, so does the cost of running a daycare business. You have many costs to cover when running a daycare. Because of this, it is essential to set decent tuition fees if you want to make a profit and keep your business running. 

Are you looking to increase your daycare's tuition rates? You're in the right place. Read on to find out our top tips for sending your tuition increase letter to parents and for a few handy template letters! 


Why is it Important to Send Tuition Increase Letters to Parents?  

As a business owner, you have every right to increase your fees throughout the year. You might do this to cover your costs or to maximize your profits and expand your business.  

Whatever your reasons, it is important to send daycare tuition increase letters to parents. 

Tuition and potential increases are usually outlined in the daycare contract you and parents have signed. This means that you have a contractual obligation to provide notice about changes to your fees. Failure to fulfill this obligation could void the contract and make it easy for parents to withdraw their children from your daycare without notice.  

Letters also create a paper trail that you can use if someone disputes the tuition increase. However, tuition increase letters aren't just there to protect you legally. They also help to foster and support the relationships you have with your daycare families.  

While a tuition increase might not be the most welcome news for every family, a letter gives you the opportunity to address the topic sensitively. 

These daycare letters can also make parents feel they are receiving clear, valuable communication. This is especially important when you are asking them to pay more for your services. The more connected they feel to your daycare business, the more likely they are to ride out a tuition increase with you. 

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What Should You Include in Your Letter?  

There are certain key pieces of information you should include in your tuition increase letter to parents, such as:  

  • The name of the child and parent/guardian 
  • The date your rate increase will start
  • The amount your rates will increase 
  • Your contact information and office hours
  • A reminder of your payment policies and options 

Each daycare tuition increase letter to parents should include specific figures for the family concerned. 

For example, let's say your fees increase by 10%. A family that was paying $750 per month will now pay $825 and a family that was paying $1,600 per month will now pay $1,760. 

Telling each family what they specifically need to pay can take a little longer. However, it means they don't have to do the math themselves and prevents confusion further down the line.  

It is also a good idea to request that parents or guardians acknowledge they received the letter from you by a specific date. Ideally, get them to sign and date a copy of the letter and return it to you.  

This helps you keep track of which parents received their letters and accepted the increase. Setting a specific return date means you have plenty of time to follow up with parents you haven't heard back from. 

By the time your fees are due to increase, everything will be in place and you won't have to chase additional payments. 

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Addressing the Tuition Increase in Your Letter  

You don't have to address the tuition increase in your letter. However, if you want to do this, don't over justify it. After all, this is your right as a business owner.  

Some reasons you can give for increasing your fees could include: 

  • The rising cost of running your business 
  • The expansion of the daycare and greater staffing requirements 
  • New programs you are running 
  • Adjusting your fees to reflect your experience and expertise in the childcare industry 

You don't have to include this information in your letter, but it is a good idea to think about your reasoning before sending the letter. Some parents may reach out asking for an explanation, so it helps to think about this in advance. 


How to Send a Tuition Increase Letter  

There are several ways to send daycare tuition increase letters to parents. You can do this via email, using the teachers at your daycare center or in the mail.  

If you have the resources, it can help to do all three! That way, you know at least one of the letters will reach each parent or guardian. 

You can then follow up with any parents you haven't heard back from by email or phone. 


When Should You Send a Tuition Increase Letter?  

You need to give the parents at your daycare business plenty of warning about tuition increases. So make sure you send your tuition increase letters to parents with at least two months' notice.  

This will give them time to make financial plans to cover the tuition fees. It also means that you’ll know in advance about any parents who will be taking their children out of daycare. This gives you a clear idea of your finances moving forward and gives you plenty of time to advertise available spaces. 

You should avoid tuition increases in April when tax bills are due. Ideally, also try to avoid tuition increases in December. The holidays can be an expensive time for families so this can be a stressful time to raise your fees. 

September is a good time to increase your tuition fees. This fits in with the academic calendar, and parents look for daycare slots over the summer. If you want to increase your tuition fees in September, send your increase letter in June or July. 


Things to Avoid When Sending a Tuition Increase Letter  

We’ve reviewed things you should include in your tuition increase letter; however, it is also important to avoid certain things in these letters. Let's take a closer look. 

Don't Put It Off  

You might not feel enthusiastic about sending a tuition increase letter; however, putting it off is not the way to solve this problem.  

In fact, putting it off could mean that you have to send your letter at an awkward time. Or it might mean that you have to increase your tuition fees more significantly to cover your costs.  

Planning ahead will give you plenty of time to draft the perfect letter. It will also give you time to plan financially in case any parents choose to withdraw their children from your daycare business. You will have more time to advertise available enrollment slots for new parents. 

Be Sympathetic Without Apologizing  

Approximately 77% of people in America feel stressed or anxious about their financial situation, so most parents won't welcome a tuition increase. Because of this, it is important to word your letter sensitively. 

However, you should never apologize for raising your fees. After all, this is your right as a business owner and the fee increase helps you continue to give their children high-quality care.  

It is a good idea to briefly remind parents of the fantastic things the tuition covers. This might include amazing staff, great quality food or enriching resources. This will help them see that their money is being spent on important things. 

Don't Discuss the Fee Increase Informally  

You and your daycare staff should not discuss the increase in tuition fees with parents in an informal way. This shouldn't be something that people talk about at the school entrance!  

Instead, direct parents with questions to the daycare office. Your office staff will be able to provide clear answers and address parents' concerns in an appropriate way.  

Keep It Short and to the Point 

There is a lot of ground to cover in a tuition increase letter to parents, but you don't want to dwell on the point. After all, the message of your letter is a fairly clear one.  

Your letter should provide parents with the key pieces of information they need, such as how much they will pay and when the increase starts. You can include a brief (brief being the most important word!) explanation of why you are increasing your fees. This will show parents that you put time and energy into writing the letter and that you value their contributions. 

Planning your letter can feel overwhelming, but there is no need to panic. These handy daycare sample rate increase letters will have you on your way in no time. 


Daycare Tuition Increase Letter to Parents Templates  

These handy daycare rate increase letter templates mean that you don't have to start writing from scratch. You can add or omit certain sections from each template to make the letters your own. You can copy and paste the text below or click on the images to download the editable templates. 

A Great, Informative Daycare Rate Increase Letter Template

Dear Parents,  

I am writing to inform you that as of [Date], I will be increasing my childcare charges by …[Amount]%. While I strive to keep my childcare charges to a minimum, it has been …[Number] [years/months] since I last increased my rates. 

This new rate accounts for increases in my running costs and the expansion of the daycare. This will allow me to provide the best possible care for your children. Your fees cover amazing resources for each student, exciting new programs for their development and excellent staff. 

Based on your child's attendance, your new monthly payment will be $[Amount] (or $[Amount] per day.)  

To acknowledge this new rate, please return a copy of this letter complete with your signature, printed name and date to the daycare office by [Date]. 

Thank you for your understanding, and I look forward to continuing to work with your children.  


[Name of Daycare Center] 

Informative Increase Letter

A Sensitive Daycare Rate Increase Letter Template 

Dear Parents,  

We greatly appreciate your choice to send your children to [Name of Daycare Center] and value the time we get to spend helping them learn and grow. We also recognize that childcare is a huge cost for parents and aim to keep our fees as low as possible.  

In the last year, we have looked for many avenues of financial support that allow us to bring on the best staff and expand our programs for your children. However, to maintain this quality of care, we also have to continue to pay for resources and competitive salaries for staff.  

As a result, we are planning a tuition increase that will be effective from [Date]. All fees will increase by …[Amount]%.  

Based on your child's attendance, your new monthly payment will be $[Amount] (or $[Amount] per day). As usual, your monthly payment should be made on [Date] of each month.  

To acknowledge this new rate, please return a copy of this letter complete with your signature, printed name and date to the daycare office by [Date]. 

If you have any questions, please don't hesitate to reach out to the office at [Email Address] or [Phone Number]. We appreciate your understanding in this matter.  


[Name of Daycare Center] 

Sensitive Daycare Rate Increase Letter


Keep These Daycare Tuition Increase Letter to Parents Tips in Mind  

As you can see, sending a tuition increase letter to parents doesn't have to be the most terrifying thing in the world. These tips and daycare rate increase letter templates will make it quick and easy to stay on top of your tuition increase administration. 

Assessing your tuition fees regularly helps you plan how to grow and expand your business in the future. So what are you waiting for?  

If you're looking for support managing your childcare business, get in touch with Vanco today. We're happy to help. 

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