Payment Issues

[SunshineMama]

I have a family who I am always chasing after for their weekly payment. They are either shorting me, "forgetting" to pay, going on several week long vacations and just not paying me before they leave, or not mentioning it when they get back. They are not bad people, they are just broke like me and everyone else right now.

I offer each family one week unpaid vacation. This child comes from a split family so he takes several weeks off (I was never advised this during the interview). Parents 100% agreed to the contract.

I am a very kind person, and these people are always trying to make me feel guilty about asking for payment. I always ask (I can overcome my guilt for my family's financial security) and eventually get paid, but they always make me have to ask for it, which makes me so uncomfortable.

This week, the child's great grandfather passed away and he hasnt been here all week. He is supposed to come today but no word. Every day this week, they text me after his normal drop off time saying that he wasnt coming. So I had to get up and ready 2 hours earlier everyday this week for no reason.

I am feeling badly about having to ask them to pay for the week even though he wasnt here all week, but I have already given them a break before and I cannot afford to this time.

I guess I just need to hear from someone that I am not a bad person and have no reason to feel guilty. The business part of me will ask and get the money, but I "feel bad."

[E Daycare]

No not bad at all! I'm like you with the feeling guilty part though! Money is always a hot topic, but our time is not free. Even though people assume it is, it's not.

I had to make a huge fee for early/late drop offs to deter this stuff because I like my time( and sleep).

I'd kindly call/text them and let them know either payment or two weeks notice is due.

[Loveyoustinkyface]

I don't think you should feel guilty. It's in your contract all the details. And they could have called you the night before to let you know also, at least you could plan accordingly.

I had one parent who gave me "the day off" after waiting half the day for his repairman to come to his home. He called me at noon and said DCB won't be there today so you have the day off!! But come end of week he didn't pay me for that day since I had "off". Nothing like half-way through your DAY OFF he lets you know that you have the day off!

[SunshineMama]

I ended up texting the mom, and she said she will text the dad to drop the money off. There is about a 40% chance that will happen, without me having to go back and ask a second time.

I was up at 4am thinking about this and have a migrane right now.
Ugh I am so irritated.

[SunshineMama]

I don't think you should feel guilty. It's in your contract all the details. And they could have called you the night before to let you know also, at least you could plan accordingly.

I had one parent who gave me "the day off" after waiting half the day for his repairman to come to his home. He called me at noon and said DCB won't be there today so you have the day off!! But come end of week he didn't pay me for that day since I had "off". Nothing like half-way through your DAY OFF he lets you know that you have the day off!

OMG I cant believe that! Did you ask for the money?

It isn't a "day off" if you have to get up and dressed for work, and sit around your house waiting for the kids to arrive.

[Cat Herder]

You are going to have to turn them away at the door for non-payment at least one time for this to stop.

You are the only one who can. Yes, it is awful but it is also true.

[Loveyoustinkyface]

OMG I cant believe that! Did you ask for the money?

It isn't a "day off" if you have to get up and dressed for work, and sit around your house waiting for the kids to arrive.

I most certainly did ask for the money!! You want to know what his response was..... "How about I pay you half your daily rate?". I said "No way, it's hardly fair to say you are giving me the day off when the day was half over anyways!" I did get paid for the whole day.

[Willow]

Going on several week long vacations contradicts with being broke.


And I don't know of many people that can afford to take a week off when one of their own parents dies, much less a grandparent. My grandmother is my world, but I also have bills to pay. It would be pointless for me to skip out on a weeks worth of work, I cannot believe the child's parents are doing such a thing if they are indeed hard up for money at the moment.


These parents sound like sterotypical poor money managers. That is not your problem and you definitely shouldn't feel bad about it.


Stinks but I agree with Cat Herder, you're going to have to lay it all out and then follow through if this is going to change. Let them know they have to pay, on time, or they will be turned away. Then follow through. They're likely not thinking twice about the position they're putting you in, so why are you extending such extreme courtesy for them and their feelings?

[phoenix]

I think in these times, people want something for nothing. While people know right from wrong and know that they are supposed to pay you, they want to see how far they can push you. My husband used to work in car sales and you would not believe what people would say to get him to come down on car prices ( which are crazy high but people can make any reason "valid") I think you should be proud of yourself for standing up for yourself. It is so hard to do. I would tell the parents that they have until xx/xx/2012 to pay you in full or they will have to find alternate care. If you are stressed over this one family, it is going to affect how you care for the rest of the kids........and that makes the days all that much harder. Good luck!!

[scarletto'hara]

I agree, turn them away for non-payment. Just like any other service, child care isn't free and until the reality of that is made clear to them, they will continue to take advantage. If I have a family that is behind on payments, I tell them that the balance must be caught up in XX days (usually 3 or 4) or I will discontinue childcare. They almost always come up with the $$.

[SunshineMama]

Going on several week long vacations contradicts with being broke.


And I don't know of many people that can afford to take a week off when one of their own parents dies, much less a grandparent. My grandmother is my world, but I also have bills to pay. It would be pointless for me to skip out on a weeks worth of work, I cannot believe the child's parents are doing such a thing if they are indeed hard up for money at the moment.


These parents sound like sterotypical poor money managers. That is not your problem and you definitely shouldn't feel bad about it.


Stinks but I agree with Cat Herder, you're going to have to lay it all out and then follow through if this is going to change. Let them know they have to pay, on time, or they will be turned away. Then follow through. They're likely not thinking twice about the position they're putting you in, so why are you extending such extreme courtesy for them and their feelings?

Good point.

[Willow]

I'll never forget the first family I offered discounted care for because supposedly they were a dirt poor family working their butts off and both were trying to get through school....after watching them go to Disney twice in one year, seeing mom's perfectly manicured nails each week, fingers and neckline constantly sprinkled with new bling, kids decked out in loads of name brand clothing they rarely wore more than once and confirming with the parents(while they laughed about spoiling them) that the kids had not one, not two, but THREE GIANT playrooms in their house....never again will I worry about a family's financial situation above my own.

Thing is, the ones actually struggling are too proud to ever say anything about it, and the ones taking full advantage that want a free ride everywhere they go are the ones that are perfectly capable of paying their bills, they just don't want to.

[clep]

I'll never forget the first family I offered discounted care for because supposedly they were a dirt poor family working their butts off and both were trying to get through school....after watching them go to Disney twice in one year, seeing mom's perfectly manicured nails each week, fingers and neckline constantly sprinkled with new bling, kids decked out in loads of name brand clothing they rarely wore more than once and confirming with the parents(while they laughed about spoiling them) that the kids had not one, not two, but THREE GIANT playrooms in their house....never again will I worry about a family's financial situation above my own.

Thing is, the ones actually struggling are too proud to ever say anything about it, and the ones taking full advantage that want a free ride everywhere they go are the ones that are perfectly capable of paying their bills, they just don't want to.

I offered a discounted rate to a family a couple of years ago. It was my first family ever I did that for. Mom was telling me their car had just broken down and they needed a new one, and couldn't afford it. I discounted their rates by 400 a month for the first year in our contract. It was also based upon one child really only coming half days. So two days later they tell me they got a car and express deep appreciation to me. A couple of months later, their son asks if they brought the BMW to pick up that day. Mom and dad sheepishly let him know they did have the BMW. I was stunned!!!!!!!! They then let me in on the fact that they bought a brand new BMW model that just came out two weeks before they made the purchase. My husband used to work for BMW so I was well aware what it costs. I never discounted again.

As far as payment to the OP. All parents have to keep two months of cheques minimum in their file at all times for me to take out and cash on the appropriate day. That took care of all payment issues after that. If they don't have a cheque in their file for me I turn them away on the first day and they have to provide the late fee on top of the cheque. They can remember to pay their mortgages without being asked. And really....how can they "forget" to pay the provider when they have to drop their child off. ::

[biglou]

Money

Asking for money would not be so difficult if you had a payment agreement in place stating the basics, like sick days or other absent days, payment due dates, late fees, ramifications for non-payment or late payment, etc...

Have all your clients sign/initial the payment agreement section in your contracts that they understand its content.

Unfortunately, many clients do not see daycare provided in family or home settings as a "real business" and play games on "us" if "we" let get away with it. I know many providers do not want to turn out clients because they will have a drop in income, but if you do not stick up for yourself, the problems will only get worse. If they leave, they would have done so anyway as they were clearly trying to steal your service and saw you will not allow them to do it. If they are not responsible money managers, your warnings will only serve as a wake up call if followed up by action...application of late payment fee, suspension of services, etc...You should have all payments made in advance of the care being provided, not after the care!

You're a professional and must run your business like any other business in the community. You should never ask for payment. They know that a payment is required and when and how it is to be delivered based on your agreement.
First thing you need to do is "Make it clear to yourself" what the payment rules are!. Then you can make it clear to your clients. If they pay late, stop being Ms. Sunshine and start raining on them!::

Good luck,

Big Lou

[jojosmommy]

Going on several week long vacations contradicts with being broke.


And I don't know of many people that can afford to take a week off when one of their own parents dies, much less a grandparent. My grandmother is my world, but I also have bills to pay. It would be pointless for me to skip out on a weeks worth of work, I cannot believe the child's parents are doing such a thing if they are indeed hard up for money at the moment.


These parents sound like sterotypical poor money managers. That is not your problem and you definitely shouldn't feel bad about it.


Stinks but I agree with Cat Herder, you're going to have to lay it all out and then follow through if this is going to change. Let them know they have to pay, on time, or they will be turned away. Then follow through. They're likely not thinking twice about the position they're putting you in, so why are you extending such extreme courtesy for them and their feelings?

I agree. People who make poor money choices are not broke. They need to pay for their responsibilities. Get tough. Make it clear you live on your income. They need to pay. Or mo care. Then force them into prepaying. Change their payment terms so you arent chasing their check.