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Daycare Center and Family Home Forum>Prepay Tuition? Or Do You Get Paid At The End Of The Week?
MyKzooFamily 11:17 AM 01-10-2012
Do you have your parents prepay their weekly tuition? Or do they pay at the end of the week?

I have personally always HATED prepaying for daycare. I felt like I had to work before I got my paycheck, so it seemed weird to me to pay them ahead of time. However... you could have parents that only enroll their children for a week and then disappear.

I'm considering having the first week prepaid, and then having them pay at the end of the week. In the 'payment' section of my handbook, I will write that late payments are NOT allowed, and if a payment is not made on time, I will immediately discontinue childcare for their children at that time. That way they know my demands and expectations are high. Instead of writing about late payment fees and such. Of course if someone did pay late, I might let it go.

But I have always felt that the more firm you are from the beginning, the easier it makes it down the road. When you leave room for flexibility or laziness on a parents part, it seems to happen WAY more often.
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familyschoolcare 11:22 AM 01-10-2012
my policy is that if you whant to pay after the fact then you pay the daily drop in rate. If you whant the lower weekly rate payment is due friday the week before.
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DaisyMamma 11:22 AM 01-10-2012
prepay, no later than drop off on first day of care for the week.
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Mary Poppins 11:22 AM 01-10-2012
Prepay here. Due Friday by the end of the day or there is a $25 late fee Monday morning and the child can not attend until both are paid. I also require a written schedule for the following week with payment, too. No guilt whatsoever, dc is one of the top professions for getting burned or having to file in small claims in order to get your $$.

I explain to my parents that the chances of ME bailing on them is slim compared to the chances of one of them bailing on me. Plus, I tell them I use the tuition to buy food and supplies on the weekend for the upcoming week. They all seem understanding and have had no issue pre-paying. I only had one take issue with the giving me a schedule thing so I offered her drop-in care. She felt that was "inflexible" so I termed her.

I made it easier by adding a PayPal button to my website (with an added convenience fee!) and they've all been using it.
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bice99 11:23 AM 01-10-2012
Prepay monthly a set tuition amount based on their contracted days/hours.
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Breezy 11:23 AM 01-10-2012
I have parents prepay. I'm paranoid I will someday have someone that is here for a week and never to be seen again!
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Blackcat31 11:25 AM 01-10-2012
Pre-paid ONLY.

No Pay=No Stay.

Here is a poll to what others do https://www.daycare.com/forum/showthread.php?t=33530
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laundrymom 11:26 AM 01-10-2012
Originally Posted by familyschoolcare:
my policy is that if you whant to pay after the fact then you pay the daily drop in rate. If you whant the lower weekly rate payment is due friday the week before.
Effective immediadely, this is my new policy!!!!
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Mary Poppins 11:27 AM 01-10-2012
Originally Posted by Blackcat31:
Pre-paid ONLY.

No Pay=No Stay.

Here is a poll to what others do https://www.daycare.com/forum/showthread.php?t=33530
Yay, I'm in the majority!
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MyKzooFamily 11:27 AM 01-10-2012
When I finally get a website up and running, I am definitely doing paypal! I am also thinking of getting their email addresses so I can invoice them, if that is easier. I know that would have been awesome when I was working, I would have loved it!

I have also thought about having parents pay the normal rate prepaying, but if they want to pay at the end of the week, it's the drop-in rate or 1/5 higher. Average home daycare rates around here are $100/week. I am hoping to get $120 per child, and I'm only taking full-timers, 1st shift to start. I am thinking of offering $120/wk if they prepay, or $145 per week if they want to pay at the end of the week. That way they feel they have the option to pay later, but it will end up giving me more money if they choose to go that route.

I'm also going to be very selective with families, making sure it seems like a very good fit from the beginning. All of the parents that I have had pay late or not pay at all, I pretty much got the feeling it could happen when I first interviewed with them.
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Blackcat31 11:29 AM 01-10-2012
Originally Posted by MyKzooFamily:
When I finally get a website up and running, I am definitely doing paypal! I am also thinking of getting their email addresses so I can invoice them, if that is easier. I know that would have been awesome when I was working, I would have loved it! .
If you use MMK for your accounting and/or food program needs, they have an option on there for parents to pay automatically like paypal.
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MyKzooFamily 11:31 AM 01-10-2012
Originally Posted by Blackcat31:
If you use MMK for your accounting and/or food program needs, they have an option on there for parents to pay automatically like paypal.
What is MMK? I'm just starting up my daycare, and we have a few months before I get that all set up. I will definitely want to have an accounting program to keep everything documented, but was just going to use Excel. I also plan to do a food program, once I get licensed and can set that all up!
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kidkair 11:36 AM 01-10-2012
I have them prepay now too. The way I look at is the parents have to trust me a lot for them to leave their kid here but that doesn't mean I have to trust them at all. When they prepay then I have been paid and have no need to fret over whether they'll remember on Friday or not.

As a side note: If you are going to be writing it out in your handbook that you'll quit services if they forget to pay then be expected to hold them to it. You shouldn't write something in your policies that you will not be holding to 100% of the time. I state that payment is due first day of care for the week which lets me be forgiving when they forget in the morning because I don't feel like it's too far to let it slide to the evening some times and if they forget then the next morning payment has to be in my hand before their child's coat comes off or they go back out the door. Most of my parents I actually do trust enough to let them slide the first day because they've proven they are trustworthy. The first few months of a new client though I try to withhold trust and demand they do as I ask in my policies. I started prepay because of some clients that were always late and so mad when I turned them away for nonpayment that I never got payment at all. Now if they get mad and walk away midweek I still have been paid and don't need to go chasing them down.
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daycare 11:39 AM 01-10-2012
Originally Posted by Blackcat31:
Pre-paid ONLY.

No Pay=No Stay.

Here is a poll to what others do https://www.daycare.com/forum/showthread.php?t=33530
This exactly.
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Blackcat31 11:40 AM 01-10-2012
Originally Posted by MyKzooFamily:
What is MMK? I'm just starting up my daycare, and we have a few months before I get that all set up. I will definitely want to have an accounting program to keep everything documented, but was just going to use Excel. I also plan to do a food program, once I get licensed and can set that all up!
Minute Menu Kids

I got the software free from my food program....it is AWESOME!!!

http://www.minutemenu.com/web/mmhx.html
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kidkair 11:41 AM 01-10-2012
Originally Posted by MyKzooFamily:
What is MMK? I'm just starting up my daycare, and we have a few months before I get that all set up. I will definitely want to have an accounting program to keep everything documented, but was just going to use Excel. I also plan to do a food program, once I get licensed and can set that all up!
MMK is Minute Menu Kids. Many food programs use it and you can get information from them before you are licensed. I actually had my food program person come for a visit before I was licensed and just had to send in a copy of my license when I got.
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MyKzooFamily 11:41 AM 01-10-2012
For everyone that does prepay, how do you work sick days or absent days?

They have already paid for a full week, so do they still pay even if they are home sick or have something come up and can't make it in?

When I was working, this was hard for me. If I had to stay home with my son, I didn't get paid at work, yet I was still paying for daycare. And it really stunk if I had to pay a back-up sitter AND still pay for daycare.

But.. at the same time.. then you would have lots of parents taking days off, and your income would be all over the place crazy. That is why I was thinking of a cheap prepaid amount, and then a more expensive amount due at the end of the week if they chose to pay that way.

However.. since the majority here is prepay.. and there are lots of good reasons to it.. maybe I should stick with that.
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Blackcat31 11:44 AM 01-10-2012
5 day a week kids get one sick day per month (I credit them back their daily rate) and sick days do not roll over into next month.

4 day a week kids get 1 sick day per 60 days

3 days a week get zero sick days.

My tuition is weekly and payable 52 weeks a year.
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bice99 11:49 AM 01-10-2012
My families get 1 week at 1/2 rate for every six months they are here. It has to be taken as a calendar week with one month's notice. It's credited the month following in case plans fall through for some reason. It shouldn't affect my ability to pay my bills if they decide to take a long weekend getaway or something. I take all stat. holidays paid. When I do take 1 or 2 weeks off in the summer, I credit them the following month. I have 5 paid days that I can take with or without notice. After that, I credit them a day's pay for any days I take. Credits always happen the month after the closed day.
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MyKzooFamily 11:50 AM 01-10-2012
Originally Posted by Blackcat31:
5 day a week kids get one sick day per month (I credit them back their daily rate) and sick days do not roll over into next month.
Great idea! I need to start working on getting my handbook put together.
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MyKzooFamily 11:51 AM 01-10-2012
What holiday days do you close?
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Blackcat31 11:52 AM 01-10-2012
Originally Posted by MyKzooFamily:
What holiday days do you close?
I PM'ed you
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Ariana 12:07 PM 01-10-2012
I don't do prepay but I do post dated cheques. That way I do have the $$ in my hand so to speak. No post dated cheques then no care. I get paid for all holidays and 5 personal and 5 sick days. I also get 4 weeks (20 days vacation) but I give the parents enough notice so we can recalculate cheques based on my vacay. I don't get paid for vacation.
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Countrygal 12:13 PM 01-10-2012
Both..... Does that sound wishy-washy or what???

They are allowed to pay on the final day of the week, however, if they prepay for the month they receive a pretty good discount. The discount for prepay is only for regularly scheduled dcfamilies. Not for extremely part timers. They must be a minimum of 20 hrs per week and on a regular schedule to take advantage of the discount.

Still working it all out though. So far this is working for me, but ask me again in a year!
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AmyLeigh 12:32 PM 01-10-2012
My situation is different. One family pays on Tuesdays for that week of care cuz that is when dcm gets paid. One family pays on Fridays following the week of care, and the third is state pay, so I get paid when the state decides to send me a check.
I have no problems with this arrangement. These families are long time friends and I know all of their employers, extended family members, church members, etc. They would have to leave the country to burn me on payment!
One was late on a regular basis (she would forget her checkbook) until I told her I would have to add a late pay fee because I was getting bank fees due to her money not being in my account on time. Now, the check in diaper bag every Friday morning!
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kidkair 12:45 PM 01-10-2012
They pay for every week that I am open. I try for two solid weeks off a year so they pay for 50 weeks a year. Part timers pay for their days whether I'm open or not as long as I'm open that week (i.e. a MW part timer still pays for Labor day). They all pay if they take a separate week off from me. I've not yet had anyone argue about it though I did have some argue when I tried to go to getting my full week vacations paid so I dropped that and will add it back in once I have more years under my belt and then it'll just be for new clients.
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Sunchimes 12:56 PM 01-10-2012
I have a mixture.
One pays me in advance for the next 2 weeks.

One gets paid every 2 weeks. She was paying me in advance, but she changed jobs and the pay periods got really messed up, so it worked out that she pays me for the week past and the week ahead. I just got around to doing a handbook, and I told her I'd like to work it out so that she is paying ahead. I think we are going to work out some sort of payment plan until she is paid 2 weeks ahead. I'm not really worrying about it though. I've been working along with her as she went through some tough times. I don't think she'd cheat me unless things hit rock bottom, and if they did, I'm not going to be the bad guy with a single mother having a crisis. She's doing the best she can, and sometimes, we need to give each other a little lift.

The other is drop in right now, but after her maternity leave is over, she's going to paying in advance for 3 days, and paying at the end of the week for anything over the 3 days.
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CheekyChick 01:33 PM 01-10-2012
Prepay here.
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bunnyslippers 01:54 PM 01-10-2012
Payment is always due the first day of care. No care without that payment the very first day. I had a family my first year that would forget to pay, then stay home the rest of the week, then forget again the next week, then skip a few days...It was a nightmare. I had to keep a running tally of what they owed me, and then chase them for it.

Don't feel as if you are asking for payment before the job is complete. You have weekly expenses that need to be covered, based on the children you have scheduled for the week: groceries, craft supplies, cleaning supplies, wipes, etc. It is necessary to be paid in advance to cover these expenses.

I also included a statement in my both my handbook and my contract:
Payment is due the first day of care each week. Please do not make me ask you for payment. It is uncomfortable for me and embarrassing for you. I will charge late fees for every day that payment is late, and will terminate care if it happens more than twice.
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Meeko 01:57 PM 01-10-2012
"I will write that late payments are NOT allowed, and if a payment is not made on time, I will immediately discontinue childcare for their children at that time."


Too many parents won't care. They'll hop to the next day care that will take payment in arrears and get a free week or so from them too......
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littlemissmuffet 03:28 PM 01-10-2012
Originally Posted by Ariana:
I don't do prepay but I do post dated cheques. That way I do have the $$ in my hand so to speak. No post dated cheques then no care. I get paid for all holidays and 5 personal and 5 sick days. I also get 4 weeks (20 days vacation) but I give the parents enough notice so we can recalculate cheques based on my vacay. I don't get paid for vacation.
Whoa... that's a WHOLE LOT of time off. Do you parents really go for this? Ever get complaints? How many years have you been open?

I get 5 personal/sick days paid, all stats paid and 10 days vacation paid... if I closed any more than that I would be out of business!!
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Ariana 05:51 PM 01-10-2012
Originally Posted by littlemissmuffet:
Whoa... that's a WHOLE LOT of time off. Do you parents really go for this? Ever get complaints? How many years have you been open?

I get 5 personal/sick days paid, all stats paid and 10 days vacation paid... if I closed any more than that I would be out of business!!
Nope no complaints. They don't mind and all happily signed my contract! I've only been in business for 1 year and a bit. I was closed 1 week at Christmas and one family took 2 more weeks besides that so they obviously have lots of vacay to burn as well. I know it's a lot of time off but my husband gets 5 weeks, I thought that making them UNpaid would soften the blow
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daycare 05:58 PM 01-10-2012
Originally Posted by Ariana:
Nope no complaints. They don't mind and all happily signed my contract! I've only been in business for 1 year and a bit. I was closed 1 week at Christmas and one family took 2 more weeks besides that so they obviously have lots of vacay to burn as well. I know it's a lot of time off but my husband gets 5 weeks, I thought that making them UNpaid would soften the blow
All I have to say is LUCKY!!!!!!!!!!!!
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Sprouts 10:38 PM 01-10-2012
"No PAY, NO PLAY"
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HappyPennie 05:00 AM 01-11-2012
Call me cRaZy, but I don't make my families pre-pay. They pay weekly or biweekly (whichever they choose at contract signing) on Fridays for the same week of care. This is less confusing for me because I don't have to go back and credit anyone for days they were sick and what not. Although, I'm sure MMK would make that simple. Right now I am fortunate to have good families that pay me on time. If I run into a problem with my way of doing this then I will definately do some re-vamping to my handbook, but as for now it is working for me and my DCF's so I see no reason to change it
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littlemissmuffet 05:25 AM 01-11-2012
Originally Posted by Ariana:
Nope no complaints. They don't mind and all happily signed my contract! I've only been in business for 1 year and a bit. I was closed 1 week at Christmas and one family took 2 more weeks besides that so they obviously have lots of vacay to burn as well. I know it's a lot of time off but my husband gets 5 weeks, I thought that making them UNpaid would soften the blow
That's awesome, good for you. My parents don't complain either, they even say I deserve the time... good folks. I suppose for you making it unpaid is easier on your parents finding a back-up provider. I personally can't do unpaid time, I'm low-ratio and my budget is just right with not having to do unpaid time so I guess to each's own
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kayla 06:23 AM 01-11-2012
I have all parents pre pay on mondays before my services. I do this because alot of people try to weasel out of paying when there child is sick, this just prevents that because i already have the money. I have one parent that pays on friday and thats just because she is very trustworthy, and i have had her since i started.
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countrymom 06:42 AM 01-11-2012
Originally Posted by JenJen:
Call me cRaZy, but I don't make my families pre-pay. They pay weekly or biweekly (whichever they choose at contract signing) on Fridays for the same week of care. This is less confusing for me because I don't have to go back and credit anyone for days they were sick and what not. Although, I'm sure MMK would make that simple. Right now I am fortunate to have good families that pay me on time. If I run into a problem with my way of doing this then I will definately do some re-vamping to my handbook, but as for now it is working for me and my DCF's so I see no reason to change it
this is what I do. But I live in a small town/county, so everyone lives around me. Works for me too. its less complicated (I have a dcp who is bipolar too)and this way, I too agree that I don't have to go back and credit people.
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jessrlee 06:46 AM 01-11-2012
I get paid on Fridays after care. It is the norm for my area.
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SandeeAR 07:43 AM 01-11-2012
Monday morning at drop off.
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Blackcat31 07:52 AM 01-11-2012
Originally Posted by JenJen:
Call me cRaZy, but I don't make my families pre-pay. They pay weekly or biweekly (whichever they choose at contract signing) on Fridays for the same week of care. This is less confusing for me because I don't have to go back and credit anyone for days they were sick and what not. Although, I'm sure MMK would make that simple. Right now I am fortunate to have good families that pay me on time. If I run into a problem with my way of doing this then I will definately do some re-vamping to my handbook, but as for now it is working for me and my DCF's so I see no reason to change it
Originally Posted by countrymom:
this is what I do. But I live in a small town/county, so everyone lives around me. Works for me too. its less complicated (I have a dcp who is bipolar too)and this way, I too agree that I don't have to go back and credit people.
NOTHING wrong with paying after services have been provided ladies! I was that way for many many years until I was forced to change due to non-paying or late paying parents.

If you can do it and your families are good about it then post-pay is great!

I'll bet most providers on this forum who do pre-pay do it because they were burned by someone in the past.
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SandeeAR 10:32 AM 01-11-2012
The only way I would consider Post Pay, is if they paid daily (just like at the Doctor, Dentist, Walmart, etc). I don't want to deal with daily pay and I'm sure parents wouldn't want to either.


But each does what works for them.
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WImom 12:20 PM 01-11-2012
Prepay, they only get a discount if I close for sickness or an appointment/vacation. If they decide not to come and I'm open they pay.
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Nellie 12:23 PM 01-11-2012
Parents pay for there care on the last day they are here for the week. I do have in my contract that in addition to late fees if late payments continue they will have to pre pay. So far I have never had any problems. I did have one family in the past that didn't pay for there last week of childcare. Mom quit her job in the middle of the week. They told me they were going to stop over the next day to pay me. I was only charging hourly for when the children were actually there so they didn't know the total. The next day after all the kids were gone I laid down with my tot for a nap. I woke up to the sound of the car and saw it leaving the drive way. I looked at my phone and they had let a message saying they were coming to pay and was wondering what the total was. I didn't hear the phone or the knock at the door. There bill was only 81. I never did any fallow up calls or letters. I was pregnant and sooo sick at the time and that was the last thing on my mind. I'll share responsibilty one that one.
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MissK 02:10 PM 01-23-2012
Originally Posted by Blackcat31:
5 day a week kids get one sick day per month (I credit them back their daily rate) and sick days do not roll over into next month.

4 day a week kids get 1 sick day per 60 days

3 days a week get zero sick days.

My tuition is weekly and payable 52 weeks a year.
I really like this. I've seen contracts where the family gets a set # of days per year (typically 5-10 around here) but then that family that is there for you for the year is essentially getting the same number of sick days as the family that is there with you for 3 months. Do you have a use it or lose it type policy for these sick days or do you let them accrue? Do you have any vacation days worked in your contract for the daycare families? I'm just wondering how I'm going to work in sick/vacation days for the families.

I saw an a different thread that you offered to send a copy of your contract/handbook. Would you mind emailing me a copy when you have a minute? I could message you my email....I'd be most greatful!!
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Blackcat31 02:37 PM 01-23-2012
Originally Posted by MissK:
I really like this. I've seen contracts where the family gets a set # of days per year (typically 5-10 around here) but then that family that is there for you for the year is essentially getting the same number of sick days as the family that is there with you for 3 months. Do you have a use it or lose it type policy for these sick days or do you let them accrue? Do you have any vacation days worked in your contract for the daycare families? I'm just wondering how I'm going to work in sick/vacation days for the families.

I saw an a different thread that you offered to send a copy of your contract/handbook. Would you mind emailing me a copy when you have a minute? I could message you my email....I'd be most greatful!!
My sick days do NOT accrue or roll over. I also have my rates based upon 52 weeks of the year and have vacation (2 weeks) as well as 5 paid and 1 unpaid holidays included for a total of 15 paid days off per year.

I also PM'ed you
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Unregistered 06:25 PM 07-30-2013
I personally charge a two week deposit and 1 week ahead. It's not like you can keep their kid at the end of the week if they don't pay!?!?!?!? So definitely 1 week ahead. And charging a 2 week deposit requires parents to give you a 2 week notice that they will no longer be coming. It sifts out the ridiculous parents that will always be late too. Sounds terrible but it's true, they take you seriously for the start and don't think of you as the 'babysitter'.
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