You only earn less money if you don't balance out your expenses. The more toys you buy one year the less you need to buy as the years go on and that offsets any food or household increases. Also if your utilities go up you get a higher deduction so it brings taxable income down. In some areas costs fluctuate a lot and in others things stay pretty stable. I basicalliy raise my rates every two years as I raise them for new incoming families and usually put them up 2-5 a day - whatever is in keeping with the averages in my area. In this way I reward loyalty of current families. It is like rent for an apartment. A landlord can only raise the price a small amount each year but once that tenant moves out he can raise the rent to whatever he wants for incoming people. I use my daycare spaces the same way.