Episode Highlights

Profit Is Not a Dirty Word: The Financial Truth Every Family Day Care Educator Needs to Hear with Shannon Knight

 

Hello, my lovely listeners 💛

This week, I'm joined by the wonderful Shannon Knight from Ledger Management, and we're talking about something that many family day care educators would rather avoid altogether — finances.

Now before your eyes glaze over at the thought of tax, GST and superannuation, stay with me.

Because this conversation isn't really about numbers.

It's about understanding your value.

It's about building a sustainable business.

And it's about making sure future-you is looked after just as well as the children in your care.

If you've ever wondered whether you're charging enough, saving enough, claiming enough, or planning enough for your future, this episode is for you.

 

What I Covered in This Episode:

Why Family Day Care Educators Need to Think Like Business Owners

One of the biggest mindset shifts we discuss is recognising that family day care educators are not employees.

You are running a business.

That means you're responsible for your own tax, superannuation, insurances, leave entitlements, professional development and future financial security.

Many educators are looking at the money entering their account each week and calling it income, when in reality it's revenue. Understanding the difference between revenue, expenses, wages and profit is essential if you want to know whether your business is actually sustainable.

The Financial Mistake So Many Educators Make

According to Shannon, one of the most common mistakes educators make is mixing their personal and business finances together.

We discuss why separate bank accounts are so important and how having dedicated accounts for tax, superannuation and business expenses can make managing your finances significantly easier.

Sometimes the simplest systems create the biggest impact.

Why Superannuation Matters More Than You Think

This was one of the most important parts of our conversation.

Far too many educators are spending thousands of dollars every year on resources while putting very little aside for their future.

We talk about practical ways to build super contributions into your weekly systems, why compounding matters, and how even small contributions can make a significant difference over time.

Because future-you deserves consideration too.

Profit Is Not a Dirty Word

I may have become a little passionate during this part of the conversation.

For far too long, educators have felt uncomfortable talking about profit.

But profit allows you to:

• Pay yourself properly

• Take annual leave

• Contribute to superannuation

• Invest in professional development

• Replace equipment

• Cover unexpected expenses

• Build a sustainable business

Family day care is a premium service, and it's time we started valuing it accordingly.

Understanding Tax, GST and Claimable Expenses

Shannon shares practical advice around:

• Vehicle claims

• GST registration

• Home-based business expenses

• Electricity and internet claims

• Record keeping

• Receipt management

• Common deductions educators often miss

We also discuss why speaking to an accountant before the end of the financial year can save a lot of stress and potentially a lot of money.

Protecting Yourself and Your Future

As sole traders, we don't have an employer providing support if we become injured or unable to work.

We discuss:

• Income protection insurance

• Workers compensation

• Total Permanent Disability insurance

• Insurance through superannuation

• Planning for unexpected life events

Because none of us expect something to happen until it does.

 

Practical Ideas You Can Use Straight Away:

• Open separate bank accounts for tax, superannuation and business income.

• Set up automatic weekly contributions directly into your super fund.

• Download the ATO My Deductions app and start capturing receipts immediately.

• Review your current fees and compare them against your actual business costs.

• Book an appointment with your accountant before the end of the financial year.

 

Why This Matters:

Family day care is one of the most valuable early childhood education services available.

We provide consistency, relationships and small-group environments where children can truly thrive.

But passion alone doesn't create sustainability.

Understanding your finances isn't about becoming focused on money.

It's about creating a business that supports your wellbeing, your family and your future while continuing to provide exceptional experiences for children.

Because if your business isn't sustainable, neither are you.

 

Links Mentioned:

📍 Ledger Management Family Day Care Services

www.ledgermanagement.com.au/familydaycareservices

📍 Family Day Care Tax Guide eBook

Available soon through Ledger Management.

📍 ATO My Deductions App

A simple tool for photographing and storing receipts throughout the year.

 

What’s Coming Up:

• Dream Lead Play Conference- Sept 26
The Dream Lead Play Conference is back for 2026, in Sydney!  Tickets out soon!

 

A Few Final Thoughts:

"Profit is not a dirty word. And what I think educators fail to see, and from the conversations that I've had, is that they just look at their income as, like, one whole thing, and that's not what your income is."

One of the biggest takeaways from this conversation is that family day care educators need to become comfortable talking about profit.

Profit doesn't mean you're taking advantage of families.

Profit means you're creating a sustainable business.

It means you're paying yourself properly, contributing to your future, investing in your professional growth and ensuring you can continue providing exceptional care and education for children.

Family day care is a premium service.

Let's start valuing it accordingly.

 

Your Challenge This Week:

• Open one new bank account.
• Check your superannuation.
• Review your fees.
• Download the ATO My Deductions app.
• Book the accountant you've been putting off contacting.

You don't have to do everything this week. Just start somewhere. Future-you will thank you for it.

 

Let's Keep the Conversation Going:

What was your biggest takeaway from this episode?

Has it changed the way you think about profit, pricing or planning for your future?

Send me a message or share your reflections; I'd love to hear your thoughts.

 

Thanks for holding this space with me today. Let’s be the educators who lead with courage, integrity, and heart.

If you have ideas for future podcast episodes or topics you'd like explored, feel free to reach out via DM or email. Thank you for being part of this incredible journey—here’s to a big-hearted and intentional 2026! 💜 Big Love, V xxx

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