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  #1  
Old 08-01-2011, 10:58 AM
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JaydensMommy JaydensMommy is offline
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Default Monthly Or Weekly Payments

Ok, So right now I have a weekly rate and parents are required to pay me every two weeks. I had a parent call and ask if she could pay me once a month for the whole month instead. I guess I am confused as to if I do this and I am charging her the weekly rate X 4, am I still making the same if I charge her once a month and what if there is more than 4 weeks in the month?? I don't know why I can't figure this out.. Help??
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Old 08-01-2011, 11:03 AM
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If you charge the weekly rate X 4, you will be cheated out of 4 weeks a year! What you do instead is take your weekly rate, for demonstration, I will just say $100, and multiply it by 52, then divide that by 12. For this demonstration, it would be:

$100 x 52 = $5,200

$5,200 / 12 = $433.33

So your MONTHLY charge would be $433.33. Be sure to explain this to the parents, because many people mistakenly think that a month is 4 weeks. It is not. If you simply did your weekly rate X 4, you would only receive $400 per month (in this demonstration). Quite a difference!!!

You might also explain to them that you understand that February has 3 less days than some of the other months, but the $433.33 is an AVERAGE. Explain the math, and that it all works out to the same amount after a year's time.
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Old 08-01-2011, 11:03 AM
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Quote:
Originally Posted by JaydensMommy View Post
Ok, So right now I have a weekly rate and parents are required to pay me every two weeks. I had a parent call and ask if she could pay me once a month for the whole month instead. I guess I am confused as to if I do this and I am charging her the weekly rate X 4, am I still making the same if I charge her once a month and what if there is more than 4 weeks in the month?? I don't know why I can't figure this out.. Help??
I have all my families do weekly but 2 have asked to go to monthly. If you just charge her 4 weekly rates a month you'll be short changing yourself.

The way I figure it is my weekly rate x 52 weeks in the year / 12 (months in a year) and what you come up with is your monthly rate.

**Sorry Joyce you and I must have been typing ours at the same time .
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Old 08-01-2011, 11:05 AM
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Make up a payment booklet for the year. Base it on the weeks in the month. If the week starts, say, on Sept 31st schedule the payment for that week included in Sept. So you would charge for 5 weeks in Sept. kwim?

I charge weekly. I don't except payments monthly cuz it just gets too confusing
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Old 08-01-2011, 11:07 AM
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I have a couple of families that pay monthly - the 1st of each month for that month.

I have them take the # of weekdays in that calendar month - minus any holidays (that I don't charge for) x my daily rate = the amount of their check.

Easy Peasy
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Old 08-01-2011, 11:15 AM
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You charge them weekly but they pay you two-weeks at a time so have them write the check for 4 to 5 weeks worth of care and write in the memo (if they give you checks) or give them a receipt for the amount with the dates that it covers.

Memo: Daycare for 8/1/11-8/26/11

If the last week of the current month overlaps into the next month they can pay for that complete week too if it's easier

Memo: Daycare for 8/1/11-9/2/11

Then the next month they can pay for the remaining weeks of that month.

Memo: Daycare for 9/5/11-9/30/11

I found that once I let my clients pay a month in advance and I break it down by days that if they need an extra day here and there they try paying the daily amount instead of my overtime rates. I also found it easier to have them pay in full weekly brakets so that I don't have some parents paying me in the middle of the week while others pay me at the beginning. I like getting all of my payments on Monday mornings so that I can make my deposit that same day all at once instead of making two trips to the bank or waiting until the 1st of the month to finally have all of my payments in. Just works for me.

This way you won't be losing any money and it won't be so confusing. This gives them the opportunity to pay however much in advance they want to pay and it makes payments easier for you to keep track of.
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Old 08-01-2011, 11:28 AM
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Thanks Everyone! That makes sense now! I knew it didn't sound right to have her pay just once a month when there is more than 4 weeks for the month.
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Old 08-01-2011, 11:50 AM
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For those who pay monthly, I have them pay based on how many mondays are in the month.

For example:
August has 5 mondays, so they pay for 5 weeks
September has 4 Mondays, so they pay for 4 weeks.

The first few days in September are actually paid for in the August payment. So, the payment for September starts on September 5th.

This way it is really easy to give a monthly rate--just multiply your weekly rate by 4 or 5 depending on the month.
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  #9  
Old 08-01-2011, 12:00 PM
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Multiply your weekly rate by 4.33 to get your monthly rate.
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Old 08-01-2011, 12:01 PM
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I let them choose weekly, bi weekly or monthly (and stick with whatever schedule.) Like a pp explained also, I just multiplied 52 weeks in each year by my rate, then divided by 12 and that is the monthly payment. That way I won't lose money for the 5 week months. Might not be 100% accurate, but if a family wants to pay monthly that is their option.

ETA- missed another pp's post, said the exact same thing!
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Old 08-01-2011, 02:17 PM
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With NEW clients that I dont know payment history on, I have them pay weekly...So you dont get someone building up a huge bill and running off at the end of the month...just beware. My clients dont have a problem paying every friday
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Old 08-01-2011, 02:19 PM
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I do weekly rate, times 52 weeks, divided by 12 months.
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Old 08-01-2011, 02:29 PM
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I use mmk
I bill on the 5th each month one month in advance.
The bill is always due on the last Friday of the month one month in advance.
I just charge by the week and it is paid in one lump sum
Rate x #of Fridays in the month = your monthly payment.
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Old 08-01-2011, 03:03 PM
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I have one that pays monthly. They just add up the number of Fridays each month and write the check for that amount.
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  #15  
Old 08-01-2011, 04:12 PM
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Someone mentioned about them running out on their bill...have them pay a month ahead. That is what I do.
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Old 08-01-2011, 04:28 PM
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Quote:
Originally Posted by Sunshine44 View Post
Someone mentioned about them running out on their bill...have them pay a month ahead. That is what I do.
I always charge in advance for two weeks. I had one drop in that I let her come all month and added up the days at the end. It took her a month to pay me, so never again will I do that.
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Old 08-01-2011, 04:35 PM
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Quote:
Originally Posted by Sunshine44 View Post
Someone mentioned about them running out on their bill...have them pay a month ahead. That is what I do.
Yep. My payday is Friday for the upcoming week. Monthly payments are due on the first Friday of the month and are calculated by the number of Friday's in the month so that they are always paid in advance.
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  #18  
Old 08-02-2011, 10:33 AM
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Quote:
Originally Posted by lpperry View Post
For those who pay monthly, I have them pay based on how many mondays are in the month.

For example:
August has 5 mondays, so they pay for 5 weeks
September has 4 Mondays, so they pay for 4 weeks.

The first few days in September are actually paid for in the August payment. So, the payment for September starts on September 5th.

This way it is really easy to give a monthly rate--just multiply your weekly rate by 4 or 5 depending on the month.
I used to do it this way. Now I do 50 weeks times my weekly rate, divided by 12 months. I don't charge for a week at Christmas (I'm closed for 2 and get paid for 1) or Spring Break. I'm closed and love it. So they pay me the same all year. I explain it's like their mortgage. Same amount, due on the 1st of each month. Then their expenses and my income stay constant.
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