I had this problem ALL THE TIME at my old daycare, but when I moved to a new city and opened a new daycare with all new, highly-trainable parents, I changed my contract. It is a prepaid contract only. Just like minutes on a prepaid phone...they can pay ahead as many weeks as they'd like, but I absolutely will not work unless there is money on the account. The very first day they start they owe me for that week.

This has been a huge help both to me and to the parents because I have NO late fees and accept NO excuses. They know the rules and absolutely no one has attempted to break them in the last 2 years. A few times they have been grumpy because they had to turn around and find an atm at 7 am, but it is SO much less stress for me.

I have a spreadsheet that, when they pay me any amount, we sign a receipt together and make a note about when the next payment will be due. So simple.

Good luck, I totally feel your pain. Especially when you really like the families you have to be hard on.

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