Parents wants same fee each month

**dottylotty** · 15-10-2013, 01:38 PM

Hello I am newly registered and have my first family starting next Tues. The dad wants me to work out the fees so it the same each month. What about if there's an school closure would I just add that on & also how can I work out how many holiday times they will be with me. They are in a state school & will be doing 7.30-9 then 3-7 3 days a week & 7.30-7 3 days in the school holidays. I will have 4 weeks of not paid a year holiday time.
Think its easier if I do weekly in advance or maybe monthly? I understand because there's 2 of them he would be paying a lot more in the holidays so probably wants to spread it.
Thanks

**lashely** · 15-10-2013, 01:45 PM

Hi I am new to childminding too and my first family did this. Although it seemed ok at first it turned into a real nightmare and caused problems when days were changed etc.

If you are happy to do this then that's great but I personally wouldn't do it again :-)

**Koala** · 15-10-2013, 02:25 PM

I do it for parents and to work out a figure I do:
38 weeks at term time rate plus 14 weeks at holiday rate (I charge for my hols but you would deduct 4 weeks from whichever rate)
divide by 12

I keep a running total of actual costs for care for the month and deduct the monthly payment so there will be either a credit or negative balance carried forward to the next month which will make itself right eventually any extra's are added on to be paid in addition to the monthly figure. This way if parents leave mid year you are aware of any outstanding balance.

**Abbiec** · 15-10-2013, 04:22 PM

I do this with all my parents, days and holidays are worked out for both of us then divide it by 12 months. I find it easier and so do parents to know its same amount each month x

**Merry-Minder** · 21-10-2013, 08:39 AM

I'm the same. If I owe any days back because I was ill for example then I give them the cash back or do a bank transfer on the Internet.

**Goatgirl** · 21-10-2013, 09:14 AM

Hi

,
Only do this if you want to. It is up to you how you run your business.
I did this for one parent who would have had to pay much more for school holidays, unfortunately she left just before a long holiday and I had to find a huge chunk of money to refund just when I need it most.
When discussed before on the forum I think several childminders said they had had trouble getting parents to pay the extra if they left owing more money than they would normally pay of the time period too.

I don't offer school holiday care any more, but in your position I would put the ball in their court

: work out the total amount they are likely to have to pay over the year, divide it by 12 and advise them how much per month they need to put aside each month to cover holiday months

.
I would advise anyone starting up to be paid in advance of care. I offer 4 weekly payments (all parents paying on the same friday before care, 4 weekly) or monthly, preferably at months end/beginning, as it's easier to keep track of my own budget that way.
Any unexpected time off I have or extra hours I do or late payments etc I itemise on the invoice for the following month.

Hope this helps, but obviously do what you are comfortable with. Good luck

**bunyip** · 21-10-2013, 09:52 AM

Originally Posted by Goatgirl

Hi

,
Only do this if you want to. It is up to you how you run your business.
I did this for one parent who would have had to pay much more for school holidays, unfortunately she left just before a long holiday and I had to find a huge chunk of money to refund just when I need it most.
When discussed before on the forum I think several childminders said they had had trouble getting parents to pay the extra if they left owing more money than they would normally pay of the time period too.

I don't offer school holiday care any more, but in your position I would put the ball in their court

: work out the total amount they are likely to have to pay over the year, divide it by 12 and advise them how much per month they need to put aside each month to cover holiday months

.
I would advise anyone starting up to be paid in advance of care. I offer 4 weekly payments (all parents paying on the same friday before care, 4 weekly) or monthly, preferably at months end/beginning, as it's easier to keep track of my own budget that way.
Any unexpected time off I have or extra hours I do or late payments etc I itemise on the invoice for the following month.

Hope this helps, but obviously do what you are comfortable with. Good luck

I agree. I know too many CMs who thought this was simple, only for it to become complicated when they change days, or it all turns sour when the child leaves. You can end up owing a lot back or arguing with a parent if they owe you at the time of reckoning up.

I personally find that sort of request sets off alarm bells. It tells me that a family can't manage their own budget and expect me to do it for them like I'm some kind of free accountancy service. How badly do I want a client who can't manage their own affairs?

**samb** · 21-10-2013, 10:33 AM

I think that's a little harsh to say they can't manage their own affairs. I personally choose to have a fixed fee mortgage and fixed payments for my gas and electricity etc just because it is easier not because I can't cope with sorting out finances if I needed to- there's just an easier option and its what I've chosen. I have never had a parent ask to pay set fee all year so I can't offer advice just saying I see why they might want to and I wouldn't see alarm bells at all.

**dottylotty** · 21-10-2013, 12:36 PM

I definitely don't feel it sets off alarm bells. I understand that he (single dad) wants each month to be the same payment. I personally would prefer this as it means that I would have the same amount coming in each month. I only have this one family at the moment. In the holiday time i am earning a lot & then a little in term time.
Thank you for your replies.

**shortstuff** · 22-10-2013, 05:03 AM

I have 2 families that I do this for. So far so good. They are long term families one have even asked me to take on their unborn baby next year.

The way I do it is work out the whole years invoices and then just divide it up. If at the end of the alloted period there is a difference it gets carried over to next year and the calculations take this into account. The parents have agreed this and it is written into the contract so minimal concerns should anything happen.

They both prefer this method as they didnt want to be giving payroll different figures every month in case this caused an issue with me receiving payment on time.

**bindy** · 22-10-2013, 06:37 AM

I work out a monthly fee but do not take off my holidays. I give them back money if I take time off and add money if I do any extra days. I find this easier for me, I have been burnt in the past.

**dottylotty** · 26-10-2013, 09:08 AM

Can I just check this is correct before I send it please. Would do it from 5th November for a year. They have 12 weeks holiday time & 40 weeks term. I am having 4 weeks unpaid holiday so taking 2 weeks off from each rate. So I charge him 10 weeks holiday time & 38 weeks term time add them together then divide by 12? So 10 weeks at 420 + 38 weeks at 204 = 11,952 % 12 = 996 ? A month?

Love childminding but don't like all the money side of it. It's my first contacted family and when I sent the bill for half term yesterday he hadnt properly read the fees or read my emails and didnt realise how much it was. He then started talking about sending them to holiday clubs. That's why I need to work this out because pro rata its not much more a week he's already paying.
Thank you for your help

**clairer** · 26-10-2013, 10:50 AM

I charge a month upfront, I personally wouldn't divide costs over a year. If a parent changes their hours and days it could get very confusing!

**The Juggler** · 26-10-2013, 11:19 AM

Originally Posted by samb

I think that's a little harsh to say they can't manage their own affairs. I personally choose to have a fixed fee mortgage and fixed payments for my gas and electricity etc just because it is easier not because I can't cope with sorting out finances if I needed to- there's just an easier option and its what I've chosen. I have never had a parent ask to pay set fee all year so I can't offer advice just saying I see why they might want to and I wouldn't see alarm bells at all.

i have always done averaged fees for parents (except my first one) as i like to have the same amount coming in every month. I repay any costs if I'm sick or take a day off for any reason. If they change hours - I work out a new monthly fee based on the number of hours and they pay that from the next month (unless the change starts any earlier).

If parents want to do this I tell them any under/over payment is irrelevant - we have an agreed sum per month and that's it. So no complications. If they are worried about overpaying say for summer then I'll take that out of the monthly fee and they can pay it in August or I'll happily do monthly invoices - but I really do not like having to do them.

However, for tto parents who want to pay 11 months care over 12 months to reduce costs, I have a signed agreement showing what they should pay over 11 months, what they are actually paying and the underpayment each month. They sign to say that if they terminate during the academic year, then they need to pay the underpayment for care each month along with final payment.

**Goatgirl** · 26-10-2013, 03:13 PM

Originally Posted by dottylotty

Can I just check this is correct before I send it please. Would do it from 5th November for a year. They have 12 weeks holiday time & 40 weeks term. I am having 4 weeks unpaid holiday so taking 2 weeks off from each rate. So I charge him 10 weeks holiday time & 38 weeks term time add them together then divide by 12? So 10 weeks at 420 + 38 weeks at 204 = 11,952 % 12 = 996 ? A month?

Love childminding but don't like all the money side of it. It's my first contacted family and when I sent the bill for half term yesterday he hadnt properly read the fees or read my emails and didnt realise how much it was. He then started talking about sending them to holiday clubs. That's why I need to work this out because pro rata its not much more a week he's already paying.
Thank you for your help

Yes, that sounds right to me

**loocyloo** · 26-10-2013, 03:54 PM

LOL! I've just had a mum decide she isn't going to use the voucher company from work, but pay me herself. "ok " I said ... she wanted to set up a payment from the bank, where I have to tell HER bank how much she needs to pay each month! apparently its too complicated for her to just pay me each month! she won't do online banking and says '' but the electricity company just take a different amount each month, so it can be done '' ... I pointed out that they have a finance dept and 000's of people paying bills each month. I am the finance dept and it just about all I can do to issue invoices each month! I think we've finally ended up that she will pay a set amount by standing order and top up any extra!

she then wasn't impressed then when I said I wasn't accepting cheques from January, as my local branch, isn't that local, and is only open 10-3, week days! if I have to go to the bank, that is a WHOLE morning wasted for the children. ( she gives me cheques for small amounts like £3.75 or £7 ... that barely covers the petrol! )

**gef918** · 26-10-2013, 05:13 PM

I did this and found that it was a LOT more work to complete invoices and work out who owed whom what amount if I was ill or parent needed extra days/hours unexpectedly. Wouldn't do it again.