As families look for ways to save money in this tight economy, the ripple effect of the recession is sending a wave through the local childcare industry.

Many day cares and preschools in Northern Nevada say fewer and fewer families are coming to them for services. Directors and owners at five local day cares say they have seen a drop in enrollment at some point in the last year.

Lorrie Casalta, the owner of University Preschool and Little Bear Preschool, is seeing the effects of the economy on her businesses. Casalta had to close one of her schools back in November 2008 because enrollment dipped so low.

Enrollment numbers are still low at her other two schools that remain open. Casalta says she can enroll 30 children at University Preschool, and she has about 21 enrolled right now.

"Childcare is not a highly profitable business to begin with," Casalta said. "So the economic crunch doesn't leave us with a lot of room to have financial resources to draw on. It's a struggle just keeping everything up and running."

Casalta said the impact the economic downturn is having on families is to blame. She says she's seen parents lose their jobs, or parents go from full-time to part-time. As they start to cut back on spending, childcare is often the first thing to go because the parents are now at home.

"We've seen so many young families losing jobs and situations changing," Casalta said. "Families haven't been able to keep their children in preschool and childcare services."