How do you collect tuition?

[KatiesCorner]

Hi all! I'm starting a daycare in my home, and was interested in learning how you collect payments from DCPs. Checks, credit cards, PayPal? Do you collect each week, or allow them to pay ahead for the month? This is one part of childcare I've never been involved in, so I'd love some advice.

Thanks!
-Katie

[Blackcat31]

Hi all! I'm starting a daycare in my home, and was interested in learning how you collect payments from DCPs. Checks, credit cards, PayPal? Do you collect each week, or allow them to pay ahead for the month? This is one part of childcare I've never been involved in, so I'd love some advice.

Thanks!
-Katie

Welcome to the forum!

Personally, I collect payments in advance.
I do NOT provide services without payment.

Parents can choose monthly, bi-weekly or weekly payment options but once they choose a payment option, they can not change it without atleast 30 days advance notice.

I accept cash, money orders, cashiers checks and bank transfers.

If a parents write an NSF check, they are to pay in cash from that day forward.

[EntropyControlSpecialist]

They must submit their security deposit fee before beginning care. This is applied to their final two weeks in care here IF they give written notice. No one else around here does this and no one I have signed on has an issue with this.

Payment is due in advance before Monday morning at a certain time. The child CANNOT attend unless their entire balance is paid in full (so, if there is a late fee from the previous day that is unpaid that includes that as well). If they don't want to pay until Wednesday then they cannot attend Monday and $20.00 is automatically attached, come the start of Tuesday (midnight) another $20.00 is attached, come the start of Wednesday (midnight) another $20.00 is attached...

I use childcarepay.com. It goes through the Minute Menu Kids System and makes it all nice and easy come tax time. Their W-10's have their entire amount for the year written on it and all of my income is plugged in by MMK into a nice little easy to print paper.

[DaveA]

Personally, I collect payments in advance.
I do NOT provide services without payment.

THIS!!! You may get lucky and never have a problem, but not getting payment in advance is begging for trouble. It took a couple of bad experiences and one trip to small claims court to learn my lesson.

I take cash, check, or money order. Bounce a check and it's cash only. I've thought about paypal- I use it for most of my sales in my bladesmithing business. I may change to having it as on option, but I would make sure that my rates were adjusted to compensate for fees. I know there are some other electronic bill pay options, but I have no experience with them.

[AmyKidsCo]

Hi and welcome!

I accept cash, check and money order. I'd take direct deposit and paypal also, but none of my parents has ever used those.

Upon enrollment parents pay a non-refundable enrollment fee and the first weeks' tuition - also non-refundable. Within a month of enrolling they need to pay an additional 2 weeks' tuition for the last 2 weeks of care, if they give 2 weeks notice.

Tuition is due the Thursday before the week and is considered past due by 5pm (closing) Friday. I've had parents pay weekly, every other week, monthly (by the week) and monthly by the calendar. Monthly by the calendar was the hardest - I don't recommend it - and every other week is hard because I lose track of whether it's a payday week or not.

[SignMeUp]

My parents all pay by check, by the week. All payment due on the last day of the week for care the next week. After that, late fees apply.
Some set it up automatically through their bank's online bill pay system, and the check is cut and physically mailed to me.
Some write me a months worth of checks. When I deposit the last one, I leave a little prepared note in their child's cubby.
One parent used to leave me an entire tablet of checks, all filled out and signed :: I guess she trusted me.

I tried allowing deposits to my bank account, but I found it took me longer to record everything, because not everyone wanted to do that. It was one more place I had to look for my income, so I stopped doing that.

I don't want to use a method that incurs fees. It cuts into my income too much (or the family's). 2-3% is a lot to me because I am thrifty like that ::

[TwinKristi]

I get checks or cash based on that family's pay schedule. Some pay every other Fri, some pay monthly on the 1st, but they all pay in advance. I also have the option of PayPal but only one family has utilized it.

[childcarebytori]

Everyone pays tuition through Minute Menu Kids (childcarepay.com).

I require parents to enroll in Auto-Pay and tuition deducts automatically each Monday.

Works for me, works for them

[Controlled Chaos]

My question for everyone (not to hijack the OP's post) is I started with people paying monthly AFTER services were rendered. It is because I started with 1 friend PT then added slowly from there and by the time I realized parents should be paying BEFORE I couldn't figure out how to switch it. I don't think at this point they can afford to double pay me one month to get on the new schedule. Will I just have to change it for incoming parents.

[Thriftylady]

My question for everyone (not to hijack the OP's post) is I started with people paying monthly AFTER services were rendered. It is because I started with 1 friend PT then added slowly from there and by the time I realized parents should be paying BEFORE I couldn't figure out how to switch it. I don't think at this point they can afford to double pay me one month to get on the new schedule. Will I just have to change it for incoming parents.

I would work it out by adding a little extra to the fees each time. Perhaps divide the amount by 4 and add that much more for 4 payments and then it will switch itself over. I would let them know in writing that I am moving to prepayment and when and tell them if they need to make payment arrangements with you that you can do something like that.