If You DON'T Collect A Deposit... WHY???

[Texasjeepgirl]

No one else around here does it

If I tried, I would have no clients.

I am THE ONLY daycare.. home based or facility style.. in my town or surrounding towns.. that charges a 2 week deposit.

I have a few openings now.. school just started.. and I lost 3 to preschool....but this is the first time I've had openings in YEARS... I've been charging a deposit for 12 years...

Everyone in my town that did HOME child care warned me I'd have NO CLIENTS if I did it..
I did it anyway.. and have NEVER regretted it.

I have lost out on clients due to this policy.
Those are the clients that did not read and comprehend my policy.
They skimmed it...and out of hand opted out on enrollment.
I am ok with that.
If they don't read the handbook and comprehend that policy.. we would have issues on other policies as well.

I let them sign a DEPOSIT AGREEMENT..
If they are not financially able to pay the deposit in full.. they have the option of paying it out... I've had clients add $5 per week until they reached the deposit amount....
and.. as long as they give 2 week notice.. In WRITING.. they they intend to WITHDRAW from care... the deposit covers those last two weeks.
No NOTICE.. they forfeit the $$$$

[e.j.]

I've often thought about requiring a deposit but have never acted on it because I haven't felt the need. Most of my families come to me through word of mouth. Friends of friends tend to act more respectfully, I think. I do require payment at the beginning of each week so I'm usually paid up for the care I actually give the kids. In 17 years, I've only had 2 families leave without giving a 2 week notice. I was happy to see them go so the money was a non-issue to me. I also knew I could fill their spots quickly so, again, it wasn't a problem for me.

[spud912]

Because I am super picky about the families I enroll in the first place.

I make ALL my rules and policies VERY clear from the get go, I make sure that I speak up at the slightlest indication of veering from my normal policies and rules and don't let things slide.

I have VERY respectful parents and (knock on wood) but in all the years since I have tweaked my interviewing routine to be on MY terms....I have not had one single parent leave owing me a dime.

If it ever gets to the point that I feel I need to require a deposit, I may entertain the idea but for now, I have families who begin at birth and age out of my program and then new ones (from word of mouth) waiting to fill the spaces.

I haven't been stiffed for money since 1998 and that is a story all in itself! The red flags were there from the beginning but I choose to ignore then and paid the price.

So basically to answer your question, I don't charge a deposit because I haven't had to and so far, that is working for me.

Ditto. I do charge an enrollment fee of $25 though. It's non-refundable and used to purchase supplies for their child (bedding, tableware, arts and crafts supplies their child will use, etc.). $25 doesn't go far.....

[MamaBear]

I dont charge any deposit or registration fee... and in the past 7 years I haven't had anyone stiff me any money. I have a strict policy regarding payments and they seem to respect that. I also am really picky about the families I choose to be a part of my daycare, so that probably helps.

[Jack Sprat]

I don't charge a deposit because the other daycares in the area do not.

I do now require new families to pre-pay. I am tired of hunting down my pay check each week.

I have a new family that will be starting (depending on mom getting a job). I thought about asking for a deposit. But, didn't.

[melilley]

I was going to when I first opened, but thought better of it. I don't think it's the norm around here and I think most parents would have a hard time coming up with a deposit plus tuition when they start. I do, however, have the parents pay before care so that eliminates the need for the deposit and makes me feel better about ever getting stiffed.

[craftymissbeth]

The section in my contract about deposits goes like this:



Security Deposit:
The parent/guardian agrees to pay a non-refundable security deposit in the amount of 2 weeks of care. The parent/guardian agrees to pay a Security Deposit of $____________.
This amount will be paid:

• In Full – at the time the contract is signed

• In Payments:
$100 will be paid with the first weekly payment and $50.00 will be paid each week for ________ weeks until the full Security Deposit amount is paid.

• Security Deposit Waived
Parent/Guardian Initials ______ ______



That way I can decide to require a deposit or not. My choice. So far I have only required it for one family and they were more than happy to pay it even though I'm not aware of any other daycares in our area that require one.