Averaged out fees - how to handle...

[hollyberry]

Hi all

Got a new child starting and have agreed full fees for days he comes in term time and 50% for the school holidays to keep the space. Mum asked would I mind calculating the two costs for the 39 weeks and 12 weeks respectively,and come up with an average so it's the same each month. Said yes, no bother at all.

What I wanted to ask though is, what if she gave notice in say July 2012 - she will have had several months where she's paid a cost that is less than it would be if she were getting charge for all the termly costs in May June and July (am I making ANY sense at all?!!!) so she would 'owe' me some extra if she cancelled then??

I'm just going a bit barmy trying to figure out how I would work out a proper settlement figure.... Shall I produce a running total for the weeks of the year based on what actual charges would be if she did pay for what she was actually using as she went along, and work out the charge from there?

Hope this is making some kind of sense - I know what I mean but I'm not sure anyone else will!!! lol!!! :) :)

[aly]

i would put something in the fees policy {i do this too} that if she goves notice and the fees are under then they need to pay remainder minus any deposits retainers etc. maybe state it in the contracts too that when notice is given any underpayments will be recified at the end.

[rickysmiths]

I wouldn't even consider this method for a term time only and retainer in the holiday. I did this last Sept and they left at Christmas, giving notice just after they had paid Dec bill. Because they hadn't used any of the holiday I ended up paying them back a lot of money at a time of year I would rather not have done.

I vowed after this I would only ever let a full time child use this method of payment.

[hollyberry]

I wouldn't even consider this method for a term time only and retainer in the holiday. I did this last Sept and they left at Christmas, giving notice just after they had paid Dec bill. Because they hadn't used any of the holiday I ended up paying them back a lot of money at a time of year I would rather not have done. I vowed after this I would only ever let a full time child use this method of payment.

Oooh, that's interesting. Hadn't thought about the reverse situation!!!!! (Stupidly). I shall have to think about how to handle that, thanks for the heads up.

[The Juggler]

for my t-time onlies i don't charge in the hols so would never owe them back anything.

I either offer parents option of paying equally over 11 months and i will take the hit on any hols if they leave early or they will

or

they can underpay a bit each month over 12 months. If they choose this option they sign a form to say they understand they are underpaying for care each month in order to spread the cost. In this situation it is explained that if they give notice and are due to leave before 31st August in the academic year then the underpayment will be calculated and become due wiht final payment.

could you tell her your reasons for NOT offering this option? You could maybe offer her a few options

1.pay a higher hourly rate and not pay anything for the holidays and pay over 11/12 months.
2. pay the varying amounts monthly as you had first planned
3. pay equal installments for the term time amount but pay the holiday fee in the month it is due?

when you do average fees it's never going to be exact but you don't want to put yourself in the situation of having to pay back lots of money:panic:

[hollyberry]

could you tell her your reasons for NOT offering this option? You could maybe offer her a few options
when you do average fees it's never going to be exact but you don't want to put yourself in the situation of having to pay back lots of money:panic:

Unfortunately, I already agreed to this method of payment with her!! I guess probably the only sensible thing will be to put her deposit cheque into a separate account (which I can do) and hold onto it for the very purpose of if this situation arises and it's me that owes her money. Can't think what else to do. Just have to make the best of the arrangement that I can as I really need the work and have other term time only's who don't pay when they're not here - guess I was too pleased that she was totally happy to pay a retainer!! Thanks very much for all the detailed replies and I've got a lot more info now if someone asks me for this again. I'll just have to see how things go and hope it all works out for the best. xx

[The Juggler]

Unfortunately, I already agreed to this method of payment with her!! I guess probably the only sensible thing will be to put her deposit cheque into a separate account (which I can do) and hold onto it for the very purpose of if this situation arises and it's me that owes her money. Can't think what else to do. Just have to make the best of the arrangement that I can as I really need the work and have other term time only's who don't pay when they're not here - guess I was too pleased that she was totally happy to pay a retainer!! Thanks very much for all the detailed replies and I've got a lot more info now if someone asks me for this again. I'll just have to see how things go and hope it all works out for the best. xx

i would keep the deposit money and work how much of an overpayment each month she is giving you hon for holiday fees and put that away too. Then if she stays you have a nice summer bonus and if not you have the cash to pay her back :thumbsup:

[hollyberry]

i would keep the deposit money and work how much of an overpayment each month she is giving you hon for holiday fees and put that away too. Then if she stays you have a nice summer bonus and if not you have the cash to pay her back :thumbsup:

Thank you Juggler, that's a really good idea to save a bit each month just in case! I foresee a session with my Excel spreadsheet this evening, working this out lol!