New Home Daycare

[Unregistered]

Hello,

I have a question that I was hoping other Home Daycare providers would be able to answer. I recently started a home daycare (1 month) for a couple of my friends. Originally it was going to be their two babies as well as both of their afterschool children. They both told me afterwards that it would just be the babies and they wouldnt be needing my services in the summer. I was on maternity leave so I had agreed with the understanding that as long as I was still making what I made on maternity then it would be alright. But with them taking the afterschool kids out I lose out on $400. I cannot afford to do this for $700 a month! then take out food,crafts etc from that! I want to remain legal so getting more children isn't an option! How can I tell them after only a month that I can't do this financially! Any advice would be greatly appreciated!

[itlw8]

You say just that. So what do you want to do? go back to work? raise their rates? 350 a month is LOW anywhere you go for infants. rates are low here but still infants are 115 to 130 a week in family childcare That would bring you 1000 for 2 infants. What is the going rate where you are.

You just say you can't feed your family on that.

[Unregistered]

I charge $105 for one family that is here four days and $120 for the other. So $900 a month but once taxes are out it is brought down. I will have to go back to work and find a daycare provider here (Extremely hard to come by). I may have to look for an au pair for the time being. But I feel like I am ditching out on them! I now know why friendship and business is not a keen idea!

[Cradle2crayons]

I'm sorry yu are having this trouble. Lesson learned I'm sure!!

The problem you are describing is exactly the reason why most of us have contracts and policy parent handbooks.

[tratliff]

I would just be honest with them. Are you not licensed or registered? I would consider starting that process if you really want to continue doing DC at all. To me, a 2-3 just isn't worth the money. And that's cheap for infants. We live in a low income area and I will be charging more than that for preschoolers.

[Maria2013]

Hello,

I have a question that I was hoping other Home Daycare providers would be able to answer. I recently started a home daycare (1 month) for a couple of my friends. Originally it was going to be their two babies as well as both of their afterschool children. They both told me afterwards that it would just be the babies and they wouldnt be needing my services in the summer. I was on maternity leave so I had agreed with the understanding that as long as I was still making what I made on maternity then it would be alright. But with them taking the afterschool kids out I lose out on $400. I cannot afford to do this for $700 a month! then take out food,crafts etc from that! I want to remain legal so getting more children isn't an option! How can I tell them after only a month that I can't do this financially! Any advice would be greatly appreciated!

I would just be honest, if they are true friends they will understand and if they are not true friends no big loss...this is your job and you need to do what pays the bills :hug:

[Margarete]

Hello,

I have a question that I was hoping other Home Daycare providers would be able to answer. I recently started a home daycare (1 month) for a couple of my friends. Originally it was going to be their two babies as well as both of their afterschool children. They both told me afterwards that it would just be the babies and they wouldnt be needing my services in the summer. I was on maternity leave so I had agreed with the understanding that as long as I was still making what I made on maternity then it would be alright. But with them taking the afterschool kids out I lose out on $400. I cannot afford to do this for $700 a month! then take out food,crafts etc from that! I want to remain legal so getting more children isn't an option! How can I tell them after only a month that I can't do this financially! Any advice would be greatly appreciated!

You agreed with the understanding that you would be making so much money... So if this is something you want to do, raise your rates to factor in everything you have mentioned. If your friends knew this I would put that into a nice letter note. Example:
As you may remember I only agreed to do this thinking that I would be making at least what I would be on maternity leave. After a month I have a better idea of what I need to be charging in order to make this work for our family, and yours. Taking the additional costs into account including food, crafts, additional supplies and utilities, taxes etc. I need to charge $... in order to continue. As you may have already noticed this rate is still below the average care for infants in the area. I would love to continue to care for your babies. This rate will be effective (date). If you decide that this is something you don't want to continue at this rate please give me the courtesy of a 2 week notice. Thank you.

[Margarete]

What state are you in? Other providers may be able to provide some state specific help/ ideas/ thoughts on what it takes to get licensed if that is something you want to think about and other ideas. In California we can join the food program while we are legally unlicensed, I don't know if that applies to your state.

Also be sure you take into account that for self employment taxes you will need to pay about 16% for social security (yourself and what would be your employer's share)

[Unregistered]

I know it's hard, but lesson #1 for me was do not care for the children of your friends. If you do, it will only cause issues!! Find others to care for!