Payments: Weekly, Bi-Weekly Or Monthly?

[littlemissmuffet]

I know many of the providers here charge weekly or biweekly childcare fees... and I'm curious as to why and what the benefits are?

I charge a flat monthly fee, based on a space - not attendance. Each family is provided with care for the hours they work, plus a reasonable commute time. Fees are due in advance, before care is even provided.
I do not provide discounted or free care, ever - families are not provided with vacation time, sick days or summer vacation/maternity leave.
I, on the other hand, do get paid for 5 sick/personal/emergency days per year, 10 vacation days per year and 10 statutory holidays per year.
I make the same income 12 months of the year.
I increase fees once per year.

For me, the benefits of charging a monthly fee is:
- There is only one day per month I receive cash (I am a cash only daycare) and have to deal with potential money-owing issues
- Less reminding that fees are due
- Less receipts/invoices to handle each month
- I only need to go to the bank and do deposits once a month
- I'd preper one guaranteed lump sum of money per month than several smaller payments on a weekly or bi-weekly basis, which means I have a large pool of money to budget with (and pay for everything - mortgage, bills, bulk groceries, tax payment, etc) all at once (no payments) - I feel I have more control over where money is going and when!
- Because parents owe month-to-month a one full calander months notice is required when terminating services - this works out well for me either way, because a month gives me alot of time to fill a space without alot of stress and panic
- I think it leaves less room for parents to try and get out of paying for sick time, holidays, etc... a parent might be less inclined to want to pay their weekly fee if there child missed two days out of 5; but with a monthly fee their child only missed 2 days out of 20 or so (I know this wouldn't be the case with all parents, but some, for sure)
- Once a month I feel very rich for about 5 minutes... ::

I'm sure there's more - I just can't think of anything else right now.

I know quite a few people who think being paid only once a month is awful... but they only can give me one reason as to why - and that's making their money last all month. That's not a disadvantage for me because I am a budgeting queen - I write a years worth of monthly budgets up each year and account for every single item we will put money towards (we have an emergency fund for the unexpected) and very rarely do we deviate from it (there's plenty of income that goes towards luxury items like dining out and etertainment, so that helps usnot stray)! I can also save money easily - i.e. I won't spend it just because it's there. I know how much I need to put aside for groceries mid-month, for upcoming parties, etc and I can either keep it in the house or in a bank account without ever touching it (a temptation I know a few people would have a hard time resisting!)

So, for me, charging a monthly fee is definitely the way to go...

So, I'm wondering what the benefits and consequences of weekly or biweekly payments are for some of you other providers? Or if there are other providers here who charge a monthly fee and struggle with it for any reason?

[Unregistered]

I recently switched from being paid weekly and Bi weekly to being paid monthly and I LUV it! It's worked out wonderfully for all the same reasons you have explained. It's so much easier and convenient to pay all my bills one time a month and to put aside what I know I will need for everything else. And all of my parents tell me they actually prefer to pay 1x/mo because its one less thing they need to remember to do.

I think that maybe one reason some providers may charge weekly or bi weekly is because that is the way their families get paid. I live in an area where the moajority of my families or high level professionals and they get paid monthly, which makes it easier for them to pay me that way. However, I do have one family that does not get paid that way and so they continue to pay me weekly (they have been with me for 3yrs).

[Blackcat31]

I know many of the providers here charge weekly or biweekly childcare fees... and I'm curious as to why and what the benefits are?

Most my families pay me on Friday for the upcoming week. Two pay me bi-weekly for the up coming two weeks.
I have no preferance as to when they pay. The rate is still the same either way. It is their choice. There are no benefits for me with either method.

Each family is provided with care for the hours they work, plus a reasonable commute time. Fees are due in advance, before care is even provided.
I do not provide discounted or free care, ever - families are not provided with vacation time, sick days or summer vacation/maternity leave.
I, on the other hand, do get paid for 5 sick/personal/emergency days per year, 10 vacation days per year and 10 statutory holidays per year.
I make the same income 12 months of the year.
I increase fees once per year.

My full time families who attend 5 days per week, get 8 free/credit days
My full time families who attend 4 days per week, get 6 free/credit days
Other families do not get free/credit days.

I get 6 PAID holidays paid and two week long vacations at 50% tuition rate. Families attending less than 4 days per week pay their regular rate for vacation time and ALL holidays.

I increase fees yearly to NEW clients only.

I do not give maternity/summer or extended leaves at a discount or lesser rate.

For me, the benefits of charging a monthly fee is:
- There is only one day per month I receive cash (I am a cash only daycare) and have to deal with potential money-owing issues Once a family gets in routine to pay every Friday, it becomes a habit and is easy and streamlined.
- Less reminding that fees are due I don't remind. They all know. I have an automatic late fee that is large enough to "remind" for me.
- Less receipts/invoices to handle each month I don't invoice, but do write out a receipt. I LOVE writing so I don't mind
- I only need to go to the bank and do deposits once a month My DH goes to the bank every Saturday morning for me on his own weekend errand run so works for me.
- I'd preper one guaranteed lump sum of money per month than several smaller payments on a weekly or bi-weekly basis, which means I have a large pool of money to budget with (and pay for everything - mortgage, bills, bulk groceries, tax payment, etc) all at once (no payments) - I feel I have more control over where money is going and when!
- Because parents owe month-to-month a one full calander months notice is required when terminating services - this works out well for me either way, because a month gives me alot of time to fill a space without alot of stress and panic I have a two week notice policy but (knock on wood) haven't had a family leave for a while now other than aging out on their own. I don't mind the two week notice either as I am not sure I could "nicely" work with a family for a whole month if they were leaving...guess it depends on the reason.
- I think it leaves less room for parents to try and get out of paying for sick time, holidays, etc... a parent might be less inclined to want to pay their weekly fee if there child missed two days out of 5; but with a monthly fee their child only missed 2 days out of 20 or so (I know this wouldn't be the case with all parents, but some, for sure)
- Once a month I feel very rich for about 5 minutes... :: Hey, you might be onto something there....I NEVER feel rich! LOL! ::

I answered this section in bold within your text.

I'm sure there's more - I just can't think of anything else right now.

I know quite a few people who think being paid only once a month is awful... but they only can give me one reason as to why - and that's making their money last all month. That's not a disadvantage for me because I am a budgeting queen - I write a years worth of monthly budgets up each year and account for every single item we will put money towards (we have an emergency fund for the unexpected) and very rarely do we deviate from it (there's plenty of income that goes towards luxury items like dining out and etertainment, so that helps usnot stray)! I can also save money easily - i.e. I won't spend it just because it's there. I know how much I need to put aside for groceries mid-month, for upcoming parties, etc and I can either keep it in the house or in a bank account without ever touching it (a temptation I know a few people would have a hard time resisting!)

So, for me, charging a monthly fee is definitely the way to go...

So, I'm wondering what the benefits and consequences of weekly or biweekly payments are for some of you other providers? Or if there are other providers here who charge a monthly fee and struggle with it for any reason?

I used to be paid once per month eons ago but actually feel as though I have more control over my money and budget when it is coming in on a more frequent interval. I guess it all "leaves" my checking account under the same circumstances so I am sure it really doesn't matter either way as long as it works.

So bottom line for me is that I have nothing important or of value to add to your post, other than simply to respond.

[littlemissmuffet]

Thanks for replying, guys!

To unregistered - it's the norm where I live that daycares recieve fees once per month, but NOT the norm that people are only paid once per month. All of my DCFs are paid every second friday or the 1st and 15th of each month!
I'm glad I'm not the only one who prefers being paid once a month!

BC, I think I would have a hard time adjusting to weekly/bi-weekly payments... and I think I would spend more! I would probably feel like "Oh, well I'm getting paid again next Friday so I'll just spend a little extra this weekend." :: But I can see how it would give some people the feeling of more control and freedom knowing that they don't have to wait such a long period of time before their next pay (I DO have these moments too - but thankfull my hubs is paid bi-weekly which helps get through tougher times).

Oh and the rich thing... all my parents pay me in 20 dollar bills for some reason so that definitely adds to the glorification. :: But like I said, about 5 minutes later after doing a bank run and paying the bills the feeling goes away quicker than money!

[Blackcat31]

Oh and the rich thing... all my parents pay me in 20 dollar bills for some reason so that definitely adds to the glorification. :: But like I said, about 5 minutes later after doing a bank run and paying the bills the feeling goes away quicker than money!

When my DS got his first job at Burger King when he was 15 he requested the bank cash his first pay check and give him all $1 bills.

When I asked him why....he said that hs wallet was now fatter and "appeared" as though he was rich compared to others. :::: I guess it is all a matter of personal interpretation. :: ::

[LK5kids]

Weekly....I LOVE being paid weeklyhappyface
I'd hate getting paid once a month.

[littlemissmuffet]

When my DS got his first job at Burger King when he was 15 he requested the bank cash his first pay check and give him all $1 bills.

When I asked him why....he said that hs wallet was now fatter and "appeared" as though he was rich compared to others. :::: I guess it is all a matter of personal interpretation. :: ::

:: That's cute!
I'd actually prefer larger bills (less counting/mistakes) but I always end up with close to a few hundred 20s! It's also annoying if I have to deposit via an ATM because my bank only allows a certain number of items (bills) per envelope!


LK5kids - see, and I'd hate to have to manage 24 or more payments per month, I have 6 kiddos so I only have to deal with 6 payments max per month.

It's nice we all have the option to pay ourselves how we see fit

[AnneCordelia]

When my DS got his first job at Burger King when he was 15 he requested the bank cash his first pay check and give him all $1 bills.

When I asked him why....he said that hs wallet was now fatter and "appeared" as though he was rich compared to others. :::: I guess it is all a matter of personal interpretation. :: ::

LOL, that would only work in the US where the bills are all the same colour. A wallet full of $1 coins wouldn't have the same effect.... :-P

[allsmiles]

i bill per week, but im welcome to whatever works for the parent as far as paying schedule.. i have one that pays mnthly, she is a teacher..
i have one that pays biweekly and the others pay weekly.. i cant imagine anyone CHOOSING to give me payment for the whole month unless they got paid that way in the area that i live. in fact the ones that pay me weekly, im almost SURE dont get paid that way.. but i guess if you can hold on to a dollar a bit longer.. why not?? i dont mind, as long as i get paid.. I have one that pays in a check and that is kind of a hassle to take it to my credit union every week. i may look into opening a separate account closer to home?? maybe???? oh well im totally off topic now LOL

[Blackcat31]

LOL, that would only work in the US where the bills are all the same colour. A wallet full of $1 coins wouldn't have the same effect.... :-P

That is true! A wallet full of $1 coins would be rather heavy and cumbersome. ::

I think it is rather boring having money all the same color.

Someone not too long ago sent me $35 in Canadian money. I wanted to save it because it was so cool looking but my DH said I was being dumb so I should spend it... It was cool though!

[sharlan]

All of mine are different and all pay cash, except for one.

#1 - pays either for 2 or 4 wks at a time, on Friday for the following weeks.
#2 - pays on Fri for the following week.
#3 - pays 1 or 2 wks at atime, on Fri for the following weeks.
#4 & #5 - pay on Monday for that week.

My contract states on Fri for the following week.

[AnneCordelia]

I get paid both weekly and biweekly. I don't care which clients choose, but once they pick one they need to give me 2 weeks notice to change it. I rely on knowing the amounts I get when I get it.

All my clients pay by etransfer so I never visit the bank. I know at least 3 clients put payday in their phones so they wouldn't forget. Now that I think about it, it's rare that I have to remind someone that it's payday.

I don't care when I get paid, because I budget regardless. I just like it to be consistent. I get paid in advance on Friday's by 5pm. No care on Monday if no pay/late fees paid.