Breaking Up Security Deposit

[Kindermom]

I was wondering if anyone had a form/contract sheet, or even a suggestion on wording, about breaking up a security deposit into installments over 4-8 weeks?

I am tweaking my handbook a bit and could use help with wording. I know a security deposit equal to two weeks is the way I want to go but if I am enrolling a sibling set, for example, I could see how that would be a bit much to pay out all at once.

Thank you!

[Lil_Diddle]

I ask for a $200 deposit per family, not per child. I do give them up to 8 weeks to pay but they have to pay $25 a week. Now if they are wanting to save a future spot I do require that amount up front and let them know that it is non-refundable. Once they enroll and give 2 weeks notice they are eligisble for a refund

[Blackcat31]

I was wondering if anyone had a form/contract sheet, or even a suggestion on wording, about breaking up a security deposit into installments over 4-8 weeks?

I am tweaking my handbook a bit and could use help with wording. I know a security deposit equal to two weeks is the way I want to go but if I am enrolling a sibling set, for example, I could see how that would be a bit much to pay out all at once.

Thank you!

I require a 2 week security deposit PER child.
I also require a 2 week notice of withdrawal PER child so a sibling set would give more than a 2 week notice.

As for breaking the deposit up into installments, I usually just say something like; "The security deposit in the amount of $_______ is due in FULL NO LATER than xxxxxxxx, 2017."

That way the family can choose to pay more or less one week etc.... but just so long as it's paid in full by the date I list in their contract.

[Ariana]

"A two week deposit is required upon the first day of registration. In instances where two or more children are enrolling, the fee can be paid in two equal instalments. First installment is due the first day of care and the second installment is due two weeks later"

You can email them with specific amounts and dates.

[lovemydaycare0912]

Depends on when the child is starting. I just added a 2 week deposit close to the end of last year. I have had parents not come to me because of it which I am fine with. For some who have secured spots in advance, I broke it down due to the situation I was in. So I had Payment 1 due for example in November and then Payment 2 due in December.

I have a dcb starting this week. Mom paid first week tuition last Friday. She is splitting 2 week deposit this Friday and next Friday while also paying regular weekly tuition. I am willing got break it up into 8 payments on top of tuition because I know 3 weeks payment up front is hard on a lot of parents. Especially with the crisis of our state not helping any new families with child care assistance, my enrollment has been hurting a little. Everyone wants quality child care, but no one can afford it. I had a mom know I charge $235, but said she was looking for care for $150. Not going to happen. It's always the same moms who want their children to "learn and do things other than TV" but also want a cheap rate. No thank you. Sorry for the tangent.

If you need any forms, PM me and I can send you what I have.

[Alwaysgreener]

I ask for a $200 deposit per family, not per child. I do give them up to 8 weeks to pay but they have to pay $25 a week. Now if they are wanting to save a future spot I do require that amount up front and let them know that it is non-refundable. Once they enroll and give 2 weeks notice they are eligisble for a refund

Is there a reason why you settle on $200 per family? Also how does that amount compare to what you charge for one full time spot?

[Lil_Diddle]

Is there a reason why you settle on $200 per family? Also how does that amount compare to what you charge for one full time spot?

It's still $200 for an individual child. I just settled on that number because doubling it seemed a lot to ask a family upfront. Especially when they will be paying a weekly tuition rate on top of that. I dont live in an overly affluent area so I don't want to scare families away with a huge fee up front. I'm not even sure if other daycares or home providers in my area even ask for deposits.

[Lil_Diddle]

I mostly use the deposit as a sign that a family is serious about enrolling. I learned the hard way when holding a spot for someone and then they changed their mind last minute. I've only had two families not have their deposit returned. One quit with no notice because of a family emergency at the same time my child was sick and needed a day off. They wanted a center that was more reliable in that circumstance. It stunk but that's what the deposit is there for. To hold me over while I find a new client. The other family I terminated care for lack of respecting policies. They asked if they got their deposit back...that was a big fat NO!

[Kindermom]

Thank you all for your suggestions!

I, too, have learned the hard way about the necessity of security deposits. Thanks for helping me find my wording!