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Daycare Center and Family Home Forum>Weekly or Daily Pay?
ambie01 08:31 AM 03-14-2019
So I have been doing childcare for about 3 years now and I have always charged by the day. Here more recently I’ve been having parents taking advantage of that. Even some telling me they are going through financial struggles (which I understand) and choose to keep them home for a week! Where I live I can only take 5 children and so I’m not making that much. I live on my own and have no other source of income. So it really puts me in a bind when a child even misses one day. Do you charge by the day or by the week? I really want to go to charging by the week but I don’t know how I would tell the parents. I know some would be really upset. I just need some advice! Thanks!!
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Pestle 08:59 AM 03-14-2019
You are operating a drop-in daycare right now, even if you don't intend to. You will attract disorganized, impulsive, financially unstable families as long as you do this. Are those the people you really want to please?

If they aren't paying for a block of time, they aren't enrolled with you. If they can opt out of some days, you have no stable income.

My families pay two weeks at a time, except for one family that pays a month at a time because it's easier for their own record-keeping. They pay the Friday beforehand, or they get a steep fee. If they tried to just "opt out" of some days without paying me, I'd be looking to fill their space with responsible people ASAP.

Yeah, you'll probably lose these people when you adjust your business model to a financially viable one. That'll hurt your pockets for a few weeks . . . but you've been allowing these families to cut holes in your pockets all this time. Creating an enrollment plan with scheduled biweekly or weekly payments is how you stitch those pockets back up.
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Cat Herder 09:19 AM 03-14-2019
I only offer full-time slots. Weekly pay, 52 weeks per year, paid online on Mondays by 10 am, in advance for the week. Payment is not based on attendance, kids can attend 5 days or none, the rate stays the same because the slot is theirs to use as they wish during operating hours.

I'd recommend beginning interviews and replacing your current clients one by one. Once they have had special they tend to expect it to continue and may become a constant source of drama when served a no. Getting an a-la-carte childcare slot is pretty special as it is not financially viable.
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Baby Beluga 09:37 AM 03-14-2019
Originally Posted by Pestle:
You are operating a drop-in daycare right now, even if you don't intend to. You will attract disorganized, impulsive, financially unstable families as long as you do this. Are those the people you really want to please?

If they aren't paying for a block of time, they aren't enrolled with you. If they can opt out of some days, you have no stable income.

My families pay two weeks at a time, except for one family that pays a month at a time because it's easier for their own record-keeping. They pay the Friday beforehand, or they get a steep fee. If they tried to just "opt out" of some days without paying me, I'd be looking to fill their space with responsible people ASAP.

Yeah, you'll probably lose these people when you adjust your business model to a financially viable one. That'll hurt your pockets for a few weeks . . . but you've been allowing these families to cut holes in your pockets all this time. Creating an enrollment plan with scheduled biweekly or weekly payments is how you stitch those pockets back up.


Here is it popular for some centers to charge by the day. Their tuition is usually very expensive and I can't image that having a revolving door of drop in children would create a calm, peaceful and secure environment for the children - which is one of the most basic of needs for children.

I have a 50/50 ish policy. Families pay for their slot with a few exceptions.

I grant families vacation days per year that correspond with their number of enrolled days. These days are available to use after 3 months of services. IE: if you are enrolled 3 days per week, you are granted 3 vacation days that can be used after 3 months of services. I find waiting 3 months weeds out the DC hoppers who I wasn't able to properly vet for one reason or another.

Families pay for closed holidays.
Families pay for any child absences, before vacation days are granted or after vacation days have been used.

Families do NOT pay for random provider related closures and do not pay for my two weeks of vacation per year.

This has been a happy balance for me and has granted me some wonderful clients.
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boy_mom 03:47 PM 03-14-2019
My first year of daycare, I charged by the day and ran into the same problems, so I feel your frustration!

I made a gradual change, I first switch the easy going parents and the ones I knew wouldnt be upset. That way i guaranteed my new weekly income. I gave them all a two week notice before the change.

Then I switched over the remaining families who were more difficult to deal with. Almost all of my difficult families left, but at that point I was done dealing with them!

The new families that I enrolled all started with new contracts, weekly fees due each week regardless of attendance with PTO built into the contract. Its definitely worth the transition to have the peace of mind in knowing what your weekly income will be!!
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ColorfulSunburst 04:54 PM 03-14-2019
Originally Posted by ambie01:
Do you charge by the day or by the week?
monthly, in advance, not based on attendance
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LysesKids 07:50 PM 03-14-2019
Originally Posted by ambie01:
So I have been doing childcare for about 3 years now and I have always charged by the day. Here more recently I’ve been having parents taking advantage of that. Even some telling me they are going through financial struggles (which I understand) and choose to keep them home for a week! Where I live I can only take 5 children and so I’m not making that much. I live on my own and have no other source of income. So it really puts me in a bind when a child even misses one day. Do you charge by the day or by the week? I really want to go to charging by the week but I don’t know how I would tell the parents. I know some would be really upset. I just need some advice! Thanks!!
You are essentially a Drop-in childcare... I learned early on you need to charge weekly regardless if they needed all 5 days ( they pay for all 5 days in advance, no refund if they don't attend), or you get walked all over; the last 8 years I was in business, I got paid monthly (infants under 24 months only care) and charged Drop-in as a daily rate, minimum 24 hrs notice & never guaranteed to be available (higher fee also).

I was full most the time & knew months in advance if a child was aging out (didn't stop people quitting last minute, but also didn't leave me hanging with no pay most time).

I found you get better clients if you require at least weekly pay with a 2 week minimum quit notice in your contract
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DaveA 03:42 AM 03-15-2019
Like the others have said- charge weekly or biweekly and for enrollement not attendance. I do FT only 50 weeks a year. Start enrolling new families and changing over current ones to a system that benefits you. You'll probably loose a couple families but be better off in long run.
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Blackcat31 06:07 AM 03-15-2019
Originally Posted by ambie01:
So I have been doing childcare for about 3 years now and I have always charged by the day. Here more recently I’ve been having parents taking advantage of that. Even some telling me they are going through financial struggles (which I understand) and choose to keep them home for a week! Where I live I can only take 5 children and so I’m not making that much. I live on my own and have no other source of income. So it really puts me in a bind when a child even misses one day. Do you charge by the day or by the week? I really want to go to charging by the week but I don’t know how I would tell the parents. I know some would be really upset. I just need some advice! Thanks!!
The only clients that will be upset are those that are getting such a great deal and having to pay only for what they use.

Those aren't the type of client most providers want anyways so if they leave, it will be in your best interests.

I charge based on how the family enrolled.
They can choose 3, 4 or 5 days a week.
They pay for ONLY the days they've "reserved" whether they actually use the day or not.

It provides a clear picture of what my budget will be as well as allows parents to know their costs up front as well.

Consistent income is necessary when you are not only limited on the number of spaces you have but especially if you are the sole income earner.
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missmisty 07:46 AM 03-15-2019
I also charge a weekly rate, regardless of attendance.upon signing of contract parents can choose a 3, 4, or 5 day week. Their contracted rate is based off that choice.
it also states that if an extra day is needed it will depend on availability, as i cannot guarantee the space wont be full. and what the charge would be if i am able to take them.

i used to charge daily but had the same issue of grandparents taking the kids for a week, etc then ive lost income. i now explain during interviews that i charge weekly regardless of attendance to secure their childs spot for the needed days.

i am also VERY firm on late charges, and being paid on time. if pay is not current, kiddos are not accepted back into care until it is. i will turn people away at the door on monday morning if they havent paid and dont have the money. if its not brought current within a week, i will term and refill from the waiting list.
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e.j. 08:11 AM 03-15-2019
Originally Posted by ambie01:
I really want to go to charging by the week but I don’t know how I would tell the parents. I know some would be really upset. I just need some advice! Thanks!!
Some parents probably will be upset because right now, they're getting a great deal - one they know they probably won't get anywhere else. When parents ask why I charge when the kids aren't here, I tell them that in order for me to remain in business and available to watch their child, I have to make sure I have a reliable income. Just like them, I have bills that have to be paid and that as much as I'd like not to have to charge them for times their child isn't here, it is necessary for me to safeguard my income. They'll find that most day cares have a similar policy for the same reason. I've found that most parents are understanding once it's explained to them.
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hwichlaz 04:16 PM 03-15-2019
my fee is a daily fee....calcluated from pay day to pay day. So if a parent gets paid on the 1st every month their fee is my daily fee times the number of weekdays in that month. I prefer weekly or every two weeks so I an auto invoice.
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