This pamphlet defines and discusses the family day home system. A family day home is a private home where six or fewer children under 14 years of age, including the day care giver's own children, are cared for during a part of the 24-hour day. Several family day homes under the auspices of one agency comprise a family day home system. Usually the system is administered by a child-placing agency. The family day home system is outlined in terms of agency staff structure, fiscal arrangements, and support social and health services. The selection and certification of family day homes is discussed as well as management procedures, the day home care givers, their training, the children, acceptance criteria, policy on absences and parent involvement. Incentives and limitations of the program are also discussed. The appendix contains facts and figures on eight Texas family day home systems. (MS)