Its payday

[Jenna]

Well January seems to have dragged on and on this year and as I had 2 weeks off over Christmas So only had 2 weeks pay in December. I've so been looking forward to today. However just logged into my internet banking and so far no one had paid. This is the part of the job I hate I feel parents don't think that paying me is a priority to them. I've got one who always pays on time and that's about it (hopefully that'll be on collection this evening) how ever the rest are totally useless. I'm in two minds whether to change my contracts as I can't go on like this. Some just pay me when ever they feel like it this could be up until the 6th of the new months when it first started I made the silly mistake of putting late fees will be charge 7 days after no payment. However I can't go on like this I feel like I'm always having to borrow money of OH even if it is only for a few days. I've been looking for a part time job mostly for the fact that I know I'll be paid on the same day every month without fail.

[unalindura77]

I have a parent who's the same. Which date are you supposed to be paid by? The last day of the month?
I am supposed to be paid on the 1st and when this falls on a weekend the parents who pay me by direct debit the money always goes through on the Monday after.

I have since updated my terms and conditions to state that it should be CLEARED by the 1st (due to an always late person)

Update your t&c's and contract with a late payment policy and say the money needs to be cleared and available by x date, if it isn't late payment charges will be charged to cover the cost of my missed direct debits.

It feels awful to be messed around, especially as you know they are definitely paid on time!

[Simona]

Well January seems to have dragged on and on this year and as I had 2 weeks off over Christmas So only had 2 weeks pay in December. I've so been looking forward to today. However just logged into my internet banking and so far no one had paid. This is the part of the job I hate I feel parents don't think that paying me is a priority to them. I've got one who always pays on time and that's about it (hopefully that'll be on collection this evening) how ever the rest are totally useless. I'm in two minds whether to change my contracts as I can't go on like this. Some just pay me when ever they feel like it this could be up until the 6th of the new months when it first started I made the silly mistake of putting late fees will be charge 7 days after no payment. However I can't go on like this I feel like I'm always having to borrow money of OH even if it is only for a few days. I've been looking for a part time job mostly for the fact that I know I'll be paid on the same day every month without fail.

Yes ...look at your contract again and change the Terms and Conditions

These are a few suggestions

- Childcare Vouchers to be in your account but the '1st of the month'...parents can set up a Standing Order so that is paid on time

- Fees to reach your account by 1st month...Doing it by BAC will help

- State clearly that if fees are not paid on time...unless the parents warn you of a reasonable excuse...you will consider 'no fee = no care'

- state clearly that fees paid on time will ensure you are able to pay your businesses expenses without incurring bank charges or your credit rating damaged

- State clearly you will charge for late payments...reflect on a sum but make parents reflect they will not want to incur that

- adding a late payment charge to their invoice could mean they refuse to pay it...so there are other ways of charging them like deducting it from their refundable deposit

Late payments are a serious 'sustainability' issue for small businesses...CMs must try to stop this practice for being so widespread...no parent would be able to walk out with good from any shop without paying in advance

Sorry there is no other way but to be tough!
Hope this helps

[unalindura77]

Simona those are brilliant, I will be adding them to mine too!

[Simona]

I would like to add another one...not for your contract but for your invoice which we should send parents each month either via email or in paper form

At the bottom of your invoice add in bold letters:

- Invoices are presented in advance at the end of the month for BAC and C/Vouchers payments to reach the CM's account by 1st of the following month.

- Please notify any delay/reason to avoid late payment charges.

- Invoices presented at any other time, for additional fees or other reasons, must be settled within 3 days

If parents 'forget' the T&C agreed in the contract this is a regular reminder each month.

[hectors house]

I have a really honest parent - she text me this morning to say that she had logged onto her voucher account to pay me for Feb (even though I haven't given her the bill yet) and noticed there was more money in the account than there should have been, she checked through and realised that although she paid January's money, but somehow hadn't finalised paying Decembers money and I hadn't been paid and I hadn't noticed - yippee got £243 coming my way that will be really welcome as this money my hoover packed up and the car is making a funny noise! I phoned her and thanked her and she said "I wouldn't ever under pay you, if I could afford it I would pay you more because you're worth it" which was really lovely. :D

[shortstuff]

I have a really honest parent - she text me this morning to say that she had logged onto her voucher account to pay me for Feb (even though I haven't given her the bill yet) and noticed there was more money in the account than there should have been, she checked through and realised that although she paid January's money, but somehow hadn't finalised paying Decembers money and I hadn't been paid and I hadn't noticed - yippee got £243 coming my way that will be really welcome as this money my hoover packed up and the car is making a funny noise! I phoned her and thanked her and she said "I wouldn't ever under pay you, if I could afford it I would pay you more because you're worth it" which was really lovely. :D

How great to have such an honest parent, brill news x

[Chatterbox Childcare]

I am very upfront and open with parents at our initial meetings and state that money has to be in my account for the 1st of each month and in the case of a weekend the last Friday.

Sometimes they push it but I am very quick to talk to them.

If I was in your position I would send everyone a quick text this afternoon and state that you haven't received their payment and that your mortgage is leaving your account in Sunday's overnight payment system and if you haven't received any funds by then you will have no alternative than to charge a £20.00 (or whatever is in your contract) late fee. If you don't enforce it, don't bother doing it otherwise they will walk all over you.

I once had a parent who underpaid me £100 and when I mentioned it to her she said "thats because I needed to pay my council tax". I replied "there will be a £20 penalty then". funnily enough the money was in my account within an hour as the council "don't charge penalties".

Another parent "forgot" to pay me in November as I invoiced her on the 17th October as I was going on holiday. She paid late November and December and tried it in January. In the morning of the 6th (due 1st) I said "not been paid and need it in my bank by 3pm or I get fined which I will pass it on to you". She went home and got her banking details and paid me immediately.

Going forward, be strict and don't allow people to use you as a bank.

[greanan]

I have a really honest parent - she text me this morning to say that she had logged onto her voucher account to pay me for Feb (even though I haven't given her the bill yet) and noticed there was more money in the account than there should have been, she checked through and realised that although she paid January's money, but somehow hadn't finalised paying Decembers money and I hadn't been paid and I hadn't noticed - yippee got £243 coming my way that will be really welcome as this money my hoover packed up and the car is making a funny noise! I phoned her and thanked her and she said "I wouldn't ever under pay you, if I could afford it I would pay you more because you're worth it" which was really lovely. :D

This happened to me this month aswell, I hadn't realised November and Decembers voucher money hadn't gone through. Couldn't come at a better time

[loocyloo]

I have got a dopey dozy mum who reasons known only to her has stopped using vouchers and pays by standing order every month ( and tops up with cash ) but she has set it for 1st month ... fees due that day, but when it falls at the weekend/ bank hol I get paid on the Monday! She can't change it as she gets paid last day of month and she WON'T do online or telephone banking and her bank is miles away! I stopped taking cheques as she wanted to pay that way but it would take a morning out of my planning just to go to bank plus petrol, parking etc! I have said its ok as not huge amounts but I will make different arrangements for anyone else wanting to do that!

[Simona]

We all do things differently and this is no exception...however...if we have a business and professional relationship with parents I would prefer it to remain so.

Personally I would find it slightly 'humiliating' having to approach parents and explain that my mortgage is due and give many other reasons to ask for what I believe is due to me and agreed...I also feel it would be tiring and repetitive to have to do this every month

I expect parents to remember to pay....as they would their own mortgage, utilities, credit card accounts .... in the same way I remember about all the hundreds of things I have agreed to do and do not need to be reminded each month such as providing meals and picking up from school.

Like it or not parents appear to take more advantage of cms that they do of nurseries and preschools...I rarely hear them speak about 'non payment', maybe collectively we need to reflect how to stop this practice and put in place a system that is not easily abused.

[FloraDora]

I haven't had any problems with payment yet, I started CM for a friend and then had other children after, I have found reasons not to take on children from families that appear close to the breadline. I know this may be seen as not fair on those struggling families who are trying to juggle returning to work with childcare costs, but my current business is not set up as a charity, the money I receive is earmarked and I do not want to have those awkward conversations, so if I get a hint of questioning fees, concerns around pay dates, appearance of lack of cash, then I find some reason for declining a place. Because of my background, I have a nice little niche of children who's parents are teachers, whilst not the best pay in the world, it is steady and enough to pay your way within a reasonable lifestyle, I know what they earn and when payday is and know they can afford my fees.

Also....nurseries and schools are constantly in the same position. There are loads of parents out there who 'forget' dinner money and run up big bills, despite letters and meetings where it is pointed out that they wouldn't dream of going to macdonalds and expecting a meal and a facility to pay later. We used to sell school uniform items as lots of parents didn't drive and costly to get into town etc... The system there was pay and deliver but when they come in the day before a child starts and ask for the jumper, and to pay at the end of the week, so that the child starts school the same as others, it used to be very difficult for my office manager to say no....rarely did we recoup that money. Afternoon session payments in nursery, School trips, residential visits, other agency clubs, insurance payments for bikeability, drama vists, skipping days.....the list goes on. Schools in some areas use their budgets to pay for all of these facilities, knowing it is not easily affordable for the parents and therefore bills are run up, other schools in affluent areas can ask parents for some payments towards activities, so they do not have to take it out of their budgets. But even in those schools, dinner money bills run up.

I think because ultimately parents know we will not let the children's experience change/ go without due to financial issues, childcare is often last on the bills list, if they don't pay the school, nursery, Childminder then their credit rating is not affected, rarely is the service withdrawn, bailiffs won't come knocking etc... So our payments are the 'Peter' in the 'borrow from Peter to pay Paul' catagory. Also we do not take payments by credit card, when the LEA introduced a system of being able to pay for school dinners online by credit card, the owed dinner money amounts reduced in most schools.

[Simona]

I haven't had any problems with payment yet, I started CM for a friend and then had other children after, I have found reasons not to take on children from families that appear close to the breadline. I know this may be seen as not fair on those struggling families who are trying to juggle returning to work with childcare costs, but my current business is not set up as a charity, the money I receive is earmarked and I do not want to have those awkward conversations, so if I get a hint of questioning fees, concerns around pay dates, appearance of lack of cash, then I find some reason for declining a place. Because of my background, I have a nice little niche of children who's parents are teachers, whilst not the best pay in the world, it is steady and enough to pay your way within a reasonable lifestyle, I know what they earn and when payday is and know they can afford my fees.

Also....nurseries and schools are constantly in the same position. There are loads of parents out there who 'forget' dinner money and run up big bills, despite letters and meetings where it is pointed out that they wouldn't dream of going to macdonalds and expecting a meal and a facility to pay later. We used to sell school uniform items as lots of parents didn't drive and costly to get into town etc... The system there was pay and deliver but when they come in the day before a child starts and ask for the jumper, and to pay at the end of the week, so that the child starts school the same as others, it used to be very difficult for my office manager to say no....rarely did we recoup that money. Afternoon session payments in nursery, School trips, residential visits, other agency clubs, insurance payments for bikeability, drama vists, skipping days.....the list goes on. Schools in some areas use their budgets to pay for all of these facilities, knowing it is not easily affordable for the parents and therefore bills are run up, other schools in affluent areas can ask parents for some payments towards activities, so they do not have to take it out of their budgets. But even in those schools, dinner money bills run up.

I think because ultimately parents know we will not let the children's experience change/ go without due to financial issues, childcare is often last on the bills list, if they don't pay the school, nursery, Childminder then their credit rating is not affected, rarely is the service withdrawn, bailiffs won't come knocking etc... So our payments are the 'Peter' in the 'borrow from Peter to pay Paul' catagory. Also we do not take payments by credit card, when the LEA introduced a system of being able to pay for school dinners online by credit card, the owed dinner money amounts reduced in most schools.

Good points Flora Dora...
you refer to schools charging for meals and activities and I know that parents have to pay these in advance
I have often seen messages in children's school bags, or in their online newsletter or little notices openly placed in schools reminding parents that these are payable in 'advance'...even their after school care has the same rule

I have never heard of parents forgetting to settle their bill with the school...in fact they seem keen to do so as soon as possible

Maybe preschools do not have the same problem because they charge by the term and in advance?
Not sure about daycare nurseries but I know parents have really no option but to settle on time...I have seen their T&Conditions where a payment method is recommended and expected

There is, of course, a system that allows us to collect money straight from the parents's bank account: a Direct Debit...that will get paid to us on demand regardless and if parents go in overdraft they get penalised

I wonder if any cm uses this system?