With Preschool Tuition Soaring, Parents Seek Alternatives

On average, parents pay $7,000 a year for preschool education (which can sometimes last two or more years), according to the National Association of Child Care Resource & Referral Agencies (NACCRRA). In some areas, prices can climb above $10,000 — such as Battery Park City Day Nursery in New York City — per year.

The steep fees leave some parents reeling. "This is blocks and Play-Doh, essentially. What are we doing?" asks Elizabeth Henderson, a mother of three in Tustin, Calif., referring to the $500 a month she'd pay to send her youngest to a nearby preschool for three half-days a week.

The high price often forces parents to choose between a high-quality early education and saving for college tuition for their kids, says Don Owens, director of public affairs for the National Association for the Education of Young Children. Even though preschool is not mandatory in the U.S., it's become in many parents' minds a prerequisite not only for a successful kindergarten experience, but ultimately for getting into the right college 15 years down the road.

And there may be some truth to that. Many early-development studies show that the first five years are the most important years in a child's brain development. Experts say preschool teaches children how to get along in a social structure — how to listen, take turns, respect others and learn a routine. Hence, the intense — and sometimes cut-throat — application process for elite preschools in some parts of the country.

Henderson admits she was a bit late in the game when it came time to shop for a preschool for her son. When she inquired at one school, the receptionist told Henderson her son's name would be about 400th on the waiting list. "I gasped," she recalls. "She told me some parents put kids on the list while they're in utero."

Of course, preschool comes in many shapes and sizes: private centers (which constitute the largest number of preschool programs), government-funded school programs, religious-based schools, informal play groups and so on. As many as 38 states offer some sort of state-funded preschool program, according to the National Institute for Early Education Research, although most are targeted at economically disadvantaged or at-risk children. Wealthier children can attend, but for a fee.

Ultimately, children can get the skills necessary to ensure kindergarten success without the $7,000 annual bill. Here are some alternatives:

Christy Gordon Baty, a mother of two girls in El Cerrito, Calif., left her lucrative job at a credit-card company in San Francisco before she enrolled her older daughter at Peter Pan Cooperative Nursery School four years ago. The school cost just $120 a month, compared with $800 a month for a nearby preschool. But, she cautions, co-ops demand a lot of time and energy from parents. "As a parent you're there to clean, prepare food, teach classes and support the director," she says.

The daily schedule of the co-op is usually not as rigid and academic as other preschool programs. That's one reason Jill Weinlein, a mother of two girls in La Canada, Calif., liked being involved in her older daughter's co-op experience. In her co-op, she says, there was a high 4-to-1 child-to-adult ratio, so there would always be one adult doing arts and crafts, one reading in the library area, one outside playing — so the children had different activities to choose from at any one time.

The typical time commitment for a co-op is at least one day every other week. In exchange for their participation, parents can expect to pay, depending on the school and the state, up to 80% less than traditional private school tuition. Parents interested in finding a co-op near them can check out Parent Cooperative Preschools International's web site for listings of co-ops in various states.