Applying last weeks payment question

[MNMum]

For those of you that decrease rates as kids get older (ie charge more for infant than preschool). Do you refund the difference when it comes to their last week of care. For example if they paid $150 up front years ago for that last weeks care and they are now only paying $130, do you give them $20 back?

[snbauser]

What I typically do is just subtract it from the week previous. So no payment the last week and $110 ($130-$20) for the 2nd to last week.

[EchoMom]

I haven't had a client that long yet to have encountered this. But what I think I would do would be to not give any refund. After all, they gave the money years ago so inflation... I dunno but I wouldn't refund unless they made a stink over it.

[HomeMADE]

That is an interesting question. While I have not had this issue yet I would not give them a refund or reduced rate for the last week of care. That is because if I increased rates during the time before their last week I would not require them to pay the increased rate for their last week. At least I don't think?

Great question

[snbauser]

That is an interesting question. While I have not had this issue yet I would not give them a refund or reduced rate for the last week of care. That is because if I increased rates during the time before their last week I would not require them to pay the increased rate for their last week. At least I don't think?

Great question

If I have raised their rates since then, I have them pay the difference. The deposit goes towards their last week in care. If that last week costs more or less I make the adjustment. I had one little boy last year who started with me when I still took infants and he had an infant rate deposit. By the time he left he was only coming for my preschool program (1/2 day) so he actually ended up having his last two weeks free because his infant deposit covered two weeks of preschool only.

[itlw8]

no I don't but if I have raised rates I do not charge them more either.

[littlemissmuffet]

I don't take deposits, because I charge monthly and just take people to court if they try and not pay me for their last months care/don't give notice and I don't have different rates for different age groups BUT if I did, I would simply return the difference in the deposit when the child moved to a new age rate. For example - if I charged $175/week for an infant, and only $150 for a toddler I would take $25 off of the parent's first payment for the week the child moved from an infant rate to a toddler rate and then not have to worry about it when they leave. Same with when the toddler became pre-school or school age, etc.

[Texasjeepgirl]

I do let them subtract the difference from the first week of payment at the new lower rate...