Day Care Funding and Financial Education

I am not sure how the city or county of Milwaukee has the program for day care center funding set up but I thought this may be an idea you can use.

I understand that the City of Milwaukee has a program that pays for day care for certain income levels.  There are a number of day care businesses that receive this money.  Many of these businesses are family run and a number of them have purchased homes based on the income generated by the day care business.  Some of these homes have been foreclosed.  How do we avoid this problem?

From what I have been hearing, these businesses receive about $1000 a month per child from the city.  If that is true, the income level would be between $40,000 and $50,000 a year.  I have seen a number of these businesses being operated in homes purchased between $65,000 and $90,000.  The mortgage and taxes would range from $600 to $900 per month.  Based on the income these businesses should not have failed and the mortgages and taxes should have been paid.

It just may be that the city is giving this money to people that have very little experience in running a business and handling money.  These people may be earning a good income but they may be falling victim to high interest rates and shady loans. 

Before the city grants a license to a day care business and begins paying for these services I think it would be a good idea  to have these people attend financial planning programs that would educate them in the art of handling money responsibly.  By doing this the city will be one step closer to accomplishing their intended objective.

Feel free to share your ideas on this subject.