Investing in the Australian childcare sector is not just a financial decision, it is a choice that shapes the future of Australian generations. In this article, WA based fund manager and specialist childcare developer Jarra discusses the ripple effects of investing in childcare which extend well beyond immediate economic gains, influencing the lives of children, the well-being of communities and the long-term prosperity of Australia.
One of the many reasons to invest in the Australian childcare sector is to contribute to the development and wellbeing of the children who get access to the care and early education. Investing in childcare leads to improved infrastructure, better resources and higher standards of care, this translates to a safer and more nurturing environment for children, supporting their overall development.
Quality early childhood education lays strong foundations for lifelong learning. Children who attend high-quality childcare programs show better cognitive and language skills, enhanced social and emotional development, and greater academic success in later years. In addition, they are provided with the opportunity to learn from, interact and communicate with peers, develop empathy, and build essential social skills. Early interactions are crucial in developing emotional intelligence, building future relationships and promoting cognitive development.
In addition to the benefits for children, investing in the Australian childcare sector also presents positive outcomes for the wider community and society. Accessible and affordable childcare enables more parents, particularly women, to participate in the workforce, boosting household income and contributing to a more diverse and productive labour market.
There are also significant long-term economic advantages, with early childhood education linked to higher educational attainment and better job prospects in adulthood, creating a more skilled and competitive workforce. Employers also benefit from a more reliable and productive workforce when employees have access to dependable childcare, this reduces absenteeism, higher job satisfaction and increased employee retention.
Choosing to invest in the Australian childcare sector now, has long term benefits for future generations. By providing all children with a strong start, we can create a more equitable society where everyone has the opportunity to succeed. A well-educated and skilled workforce is essential for economic growth and by investing in the early years, we are laying the groundwork for a prosperous future.
Childcare centres often become integral parts of their communities, providing not just care but also support and resources for families. This fosters a sense of community and contributes to the social fabric of society.
Choosing to invest in the childcare sector presents many benefits. It enhances the quality of care and educational outcomes for children, supports workforce participation and economic growth, and paves the way for a brighter future for all Australians. By prioritising early childhood education, we are investing in our most valuable, our children.
To find out more about Jarra’s current investment opportunities in the childcare space, click here.
Sources: CBRE Australia, “Why childcare has been one of the country’s most resilient asset classes”; NSW Government, “Benefits of Early Childhood Education”, Gates Foundation, “How Affordable Child Care Leads to Global Economic Impact”, The Early Years Learning Framework for Australia, “BELONGING, BEING & BECOMING” V2.0 2022
This blog is for information purposes only and does not form financial advice or investment recommendations. Fund performance is subject to risks and target returns are indicative, based on assumptions and are not guaranteed. For more information, please refer to the individual Fund Information Memorandums. This information has been prepared without taking into account your individual circumstances, objectives, financial or taxation situation. You are advised to seek your own individual investment advice from a relevant tax and investment professional before making any investment decisions.
