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Daycare Center and Family Home Forum>Do You Have Families that Pay Monthly?
SunflowerMama 11:26 AM 03-21-2010
And if so do they pay for the upcoming month or the month that just concluded?

In my contract I request payment every Friday for the upcoming week but I have one single parent that is paid monthly, things are tight financially, and would like to pay monthly. Next Friday she's paying and will owe for next week and according to my contract the following week (last week of March) and then wanted to start paying monthly.

On one hand I would feel bad collecting 2 weeks for March and then all of April at one time but on the other hand I would be nervous going a whole month w/o payment as I will need that income for food and supplies.

What do you guys think? Should I just collect payment for the rest of March and then let her pay me from now on at the end of each month or just tell her that I can allow her to pay monthly but it would have to be upfront for the upcoming month. And unfortunately I will have to request payment for April upfront.
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gkids09 11:51 AM 03-21-2010
I have one family that pays monthly. I require them to pay me up front for each month, just because if something happens that they "forget" at the end of the month, I won't be stuck having to try to get my money. I also have in my policy that I require payment on Fridays for the following week, but they prefer to do it this way, and as long as it's in advance, I sure don't mind it! I can see where you would feel bad about getting paid and then asking for payment again. However, remember you are running your business, and this is your income, your salary, just like any other job. Don't feel bad. The parent should know that's what's coming if your contract says you need to be paid on Fridays in advance. If you want to be paid weekly in advance, I would assume you'd want to be paid monthly in advance as well. Just be sure to mention it to the parent
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momofboys 11:56 AM 03-21-2010
Originally Posted by twinmama:
And if so do they pay for the upcoming month or the month that just concluded?

In my contract I request payment every Friday for the upcoming week but I have one single parent that is paid monthly, things are tight financially, and would like to pay monthly. Next Friday she's paying and will owe for next week and according to my contract the following week (last week of March) and then wanted to start paying monthly.

On one hand I would feel bad collecting 2 weeks for March and then all of April at one time but on the other hand I would be nervous going a whole month w/o payment as I will need that income for food and supplies.

What do you guys think? Should I just collect payment for the rest of March and then let her pay me from now on at the end of each month or just tell her that I can allow her to pay monthly but it would have to be upfront for the upcoming month. And unfortunately I will have to request payment for April upfront.
I would not feel bad; you have already completed the work you need to get paid! From now on I would only accept payment prior to services being rendered, especially if we are talking about payment for a whole month. If she wants to pay month to month she will have to pay in advance. You could tell her you need to be able to pay for your lunches for the kids & other supplies. How could you do that if you don't get paid until after the fact. Good luck!
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Persephone 11:59 AM 03-21-2010
They would need to pay up front. You could be out a lot of money come week 4 of the month with no payment and they skip out on you.
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Crystal 02:14 PM 03-21-2010
I do. The parent pays in advance....ALWAYS!!!! Never feel bad about that, it is your safety net, because, unforunately, there are people who take advantage.

Also, keep in mind that you should charge for the whole month, not a four week month. So, for instance, I charge $150 week. Multiply that by 52 weeks in the year and divide by 12 months for your monthly fee. In this case, it would be $150X52/12= $650 per month.
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nannyde 03:05 PM 03-21-2010
It sounds like you are allowing her to come this upcoming week without payment in advance?

Always make sure they pay in advance. If they want to pay monthly they need to pay upfront for the entire month. Figure out the total number of working days in the month and multiply it by the daily rate you charge.

I don't multiply the weekly fee X 52 and then divide by 12. There is too many months in a row when you have more working days. The average won't compensate you fully unless they are with you for a full year.

Nan
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SunflowerMama 03:37 PM 03-21-2010
Originally Posted by Crystal:
I do. The parent pays in advance....ALWAYS!!!! Never feel bad about that, it is your safety net, because, unforunately, there are people who take advantage.

Also, keep in mind that you should charge for the whole month, not a four week month. So, for instance, I charge $150 week. Multiply that by 52 weeks in the year and divide by 12 months for your monthly fee. In this case, it would be $150X52/12= $650 per month.

I think I did it similar. I charge $150 too so I just figured it was $30/day so for April it's 22 days of care x $30/day = $660/month.
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laundryduchess@yahoo.com 03:43 PM 03-21-2010
If she wants to pay a month at a time,.. she needs to pay the whole month at a time, you cant be expected to wait 2 weeks for your payment. Or,.. she can put on her big girl panties, save back 2 weeks payment each time she gets paid and pay you 2 weeks at a time,... Her schedule does not dictate your payday.
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AmandasFCC 03:51 PM 03-21-2010
My parents all pay monthly. Fees for the month are due on the first care day of the month.
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Crystal 08:08 AM 03-22-2010
I do the 52 week year so that payment is the same every month. That way I don't have to give them the fee for the month and remind them to pay.
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tenderhearts 10:11 AM 03-22-2010
I have a family that pays me monthly, so on the 1st he pays the whole month we're starting. If he gives me 2 weeks for any day off it would be credited the next month.
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MarinaVanessa 09:14 AM 03-24-2010
I agree in having them pay the month in advance. The families I care for pay either weekly or monthly but always in advance.
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grandmom 09:52 AM 03-24-2010
I charge monthly only. It's due in advance. It's the same every month, that way they can do their budget, and so can I. There is no discount for absences for any reason. Holidays and 2 weeks vacation is paid.

I found at the beginning that I got a different clientele group when I allowed weekly payments. People who make a monthly commitment, are different than those who make a weekly commitment, KWIM?
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misol 04:25 PM 03-24-2010
Originally Posted by grandmom:
I charge monthly only. It's due in advance. It's the same every month, that way they can do their budget, and so can I. There is no discount for absences for any reason. Holidays and 2 weeks vacation is paid.

I found at the beginning that I got a different clientele group when I allowed weekly payments. People who make a monthly commitment, are different than those who make a weekly commitment, KWIM?
For those of you who have parents pay monthly, do you require a deposit? If so, how much?
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