2 Week Deposit Refund?

[Missjaime]

Hi all! I have a client leaving at the end of July and I am trying to figure out what to charge her for July. She paid her deposit 3 years ago and it was very different from her current 2 week charge (her price has changed over the years due to changes in schedule, she had 2 kids with me first, now just one). Do I deduct what she paid as her deposit or do I deduct 2 weeks of her current pay?
I charge by the month for 4 weeks tuition. So this will affect her July bill. What are your thoughts? I haven't had a client who has been here this long leave yet.

[trix23]

What does your Handbook say?

I would figure out how much she'll owe for July then subtract that amount from what amount she paid in the beginning.

If you don't currently have a policy like this I suggest you make an addendum and update it right now and have all your clients sign it and get it back to you

[Missjaime]

My handbook says "the deposit covers the final 2 weeks of your contract". That's why I'm not sure anymore. Because what she paid covers more than the final 2 weeks.

[Jupadia]

I would just take the total then and deduct it from her bill. Since you never put the deposit towards the other child's last two weeks. It would not be fair to hold it back now. I would write a letter detailing the deposits from her total bill and have her sign it so you have it for your records.

I had to figure this out recently myself. I had a child drop to one day per week vs full time. With the understanding when I filled the spot I would let them go. So I had to take the deposit and spread it out over 4 weeks. (I take 1 week deposit)

[AmyKidsCo]

What do your policies say?

The way I do it is a full time Final Payment covers the last 2 FT weeks of care, no matter what the rate is at the time. If a PT schedule changes to FT they need to make up the difference in Final Payment. If a FT schedule changes to PT they don't get a refund - it still covers the last 2 weeks of care.

If your policies don't state how the deposit is used I'd deduct the amount she paid from the amount she owes for July.

[hwichlaz]

Originally Posted by Missjaime

My handbook says "the deposit covers the final 2 weeks of your contract". That's why I'm not sure anymore. Because what she paid covers more than the final 2 weeks.

It's in your contract right there.

[AmyKidsCo]

Originally Posted by Missjaime

My handbook says "the deposit covers the final 2 weeks of your contract". That's why I'm not sure anymore. Because what she paid covers more than the final 2 weeks.

Somehow I missed this. If it says it covers the final 2 weeks then it covers the final 2 weeks, no refund necessary.

If she's asking for a refund I'd consider giving it so you'll part on good terms - you don't want her badmouthing you all over town. But if she's not asking, don't offer!

[EntropyControlSpecialist]

I always apply the total amount paid, no matter what it was.

For those that have been here 2+ years, they always wind up owing the difference since my rate increased. In your case, I would apply the difference to the last month's balance. It's only fair.

[Ariana]

Originally Posted by Missjaime

My handbook says "the deposit covers the final 2 weeks of your contract". That's why I'm not sure anymore. Because what she paid covers more than the final 2 weeks.

I give a refund of the difference if they are paying less than the original 2 weeks. I also require the difference paid if they are paying more currently.

[Blackcat31]

Originally Posted by Ariana

I give a refund of the difference.

I'd refund the difference as well.

[Missjaime]

Thanks for all the advice! I think in this situation I will refund the whole amount and I will amend my handbook to say that whatever the deposit was it will cover the final 2 weeks of the contract, no matter the difference. For most clients this will be a benefit for them, it was only the strange changes they made over the years that made it end up that they paid more than they owe. The mom was surprised that she would get a discount for July - I think she forgot about the deposit! But, I will do the right thing and just deduct the whole amount this time. Thanks again - I think the different advice is exactly where I was headed myself.

[Blackcat31]

Originally Posted by Missjaime

Thanks for all the advice! I think in this situation I will refund the whole amount and I will amend my handbook to say that whatever the deposit was it will cover the final 2 weeks of the contract, no matter the difference. For most clients this will be a benefit for them, it was only the strange changes they made over the years that made it end up that they paid more than they owe. The mom was surprised that she would get a discount for July - I think she forgot about the deposit! But, I will do the right thing and just deduct the whole amount this time. Thanks again - I think the different advice is exactly where I was headed myself.

I am confused as to how her deposit got to be higher than her final two weeks rate?

Did she go from full time to part time so their weekly rate is now less or did you lower your rates?

For me when a family puts down a two week deposit, it's equal to their weekly rate X's 2. I don't raise rates for current families so when they leave my care, their deposit covers their last two weeks with no shortages or overages.

So just curious how this family's deposit got to be more than their rate.

[Missjaime]

They started off with 2 kids at 3 days a week. Youngest was at a higher rate because she was only 1 when they started. As the years went on, mom went back to work full time, but I only had space for the younger to go full time. So, the younger is currently full time at the preschool rate, the older one still comes one day per week at preschool rate. It just worked out strangely. At the beginning they were at infant rate ($50) x 3 plus preschool rate ($40)x3. Now they are at preschool full time rate ($185 per week) plus one day preschool rate ($40). The difference is a little less than $200. It's weird, but it always made sense when we changed things! Lol!