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Old 08-22-2017, 12:10 PM
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LeslieG LeslieG is offline
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Default Paying For My Own Kids To Be In My Daycare

So my sister was recently added to my license and we now do daycare together out of my house. I have soon to be 2 children of my own that will be in our daycare, which is counted into our licenced capacity. I feel bad about my 2 kids taking up spots, therefore cutting into my sister's income potential.

Because of this, we have talked about me paying 50% of our weekly rate for each of my 2 kids once all of our spots become full.

Well now it looks as though we may fill up all of our spots which would mean I have to start paying for my kids. I did the math and all I can say is "yikes!!". I'd be paying $720/month to have my kids in my own daycare!! And the full $720 would go all to my sister.

My sister does pay me "rent" every month because the business is in my home. She pays $170/month.

So what I want to know is: Does all of this seem fair? Would you pay for your own kids? I don't really know what I'm doing!
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Old 08-22-2017, 12:12 PM
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trytobearunner34 trytobearunner34 is offline
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I would make it clear from the beginning that I would not pay for my own children to be in my day care.
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Old 08-22-2017, 12:28 PM
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Quote:
Originally Posted by LeslieG View Post
So my sister was recently added to my license and we now do daycare together out of my house. I have soon to be 2 children of my own that will be in our daycare, which is counted into our licenced capacity. I feel bad about my 2 kids taking up spots, therefore cutting into my sister's income potential.

Because of this, we have talked about me paying 50% of our weekly rate for each of my 2 kids once all of our spots become full.

Well now it looks as though we may fill up all of our spots which would mean I have to start paying for my kids. I did the math and all I can say is "yikes!!". I'd be paying $720/month to have my kids in my own daycare!! And the full $720 would go all to my sister.

My sister does pay me "rent" every month because the business is in my home. She pays $170/month.

So what I want to know is: Does all of this seem fair? Would you pay for your own kids? I don't really know what I'm doing!
I'd make your sister your employee instead of your partner.

Its YOUR house so it's your wear and tear and ......

If you list your sister on your license it shouldn't automatically mean she is your equal partner just qualified to be a legal caregiver for your program.

I have my DH on my license as a co-license holder but he is my employee.
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Old 08-22-2017, 12:44 PM
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NeedaVaca NeedaVaca is online now
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Originally Posted by Blackcat31 View Post
I'd make your sister your employee instead of your partner.

Its YOUR house so it's your wear and tear and ......

If you list your sister on your license it shouldn't automatically mean she is your equal partner just qualified to be a legal caregiver for your program.

I have my DH on my license as a co-license holder but he is my employee.
Definitely this! She should just be your employee, no way should you pay for your own children in your own house. Plus as Blackcat mentioned, it's wear and tear on your house. Come tax time you will be the one to claim t/s%, supplies, maintenance, utilities.. etc AND she's getting one heck of a deal on rent
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Old 08-22-2017, 01:37 PM
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Pestle Pestle is online now
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I think making her your employee instead of partner would eliminate a bunch of problems. She needs to be paid fairly for her time, regardless of how many kids are enrolled, and you need a system that'll work even if, in the future, your sister decides day care isn't for her and moves on to something else.

But, I could see her feeling betrayed or demoted if you tell her you want to make her an employee. It's a challenging situation, working with relatives! My husband and I have never gotten along worse than when I was his manager.

The "rent" is not to live in your house, correct? She's just paying a share into using the house as a day care. Basically, in your current system, she's leasing the house to use as her workplace.
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Old 08-22-2017, 06:11 PM
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Leigh Leigh is online now
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$170/month is insanely cheap. How did you arrive at that number? Consider the t/s portion of your utilities, mortgage, etc. EVERYTHING. Take THAT number and divide by 2. That would be a fair place to start. Add to that half of the wear and tear on your home and other expenses that come from being the homeowner. I think you'll find that your kids taking up two spaces comes to LESS than what she OUGHT to be paying for rent.
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Old 08-22-2017, 06:51 PM
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Snowmom Snowmom is online now
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No, it doesn't seem fair.
Factoring in not only the above, but also the expenses associated with each child.
Your sister is getting 50% GROSS of two average rates.

What's your NET on each child?
How much does the business (or YOU) pay for supplies (TP, paper towels, soap, disinfectant, etc) and food, water, electricity, gas, upkeep, etc?

You are flat out paying her that 50% and taking YOUR loss on the expenses part of the rate as well (but she's not taking ANY!).

Last edited by Snowmom; 08-22-2017 at 06:52 PM. Reason: spaces
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