Monthly Payments

[Unregistered]

I personally don't want to bill monthly as each month would be a different total and would open me back up to the "what do I owe?", "when do I owe?" and "why do I owe that?" discussions, again.

annual payment/12= equal monthly payment and don't matter how many days/week each month has.

[Unregistered]

Yikes! Did the center just lose that week of payment? That would be a lot to give up!

they don't lose anything. Just calculate a monthly payment as an annual payment/12. It makes the billing process much-much easier.

[Blackcat31]

annual payment/12= equal monthly payment and don't matter how many days/week each month has.

As a provider it's easy to understand but I think what Cat Herder is trying to say is parents don't understand the math when terms like "monthly" are used verses "weekly" in regards to tuition.

Most providers get it. It's usually the parents that need to do the math or have it broken down for them.

they don't lose anything. Just calculate a monthly payment as an annual payment/12. It makes the billing process much-much easier.

The center does lose a week's pay.....Amy'sKids was quoting a poster that specifically said her center lost a weeks worth of fees ....because they didn't calculate it by the week and instead did the math per month.

Poster said "Which basically meant if there was 5 weeks in the month, they didn't have to pay for that extra week."

[Cat Herder]

annual payment/12= equal monthly payment and don't matter how many days/week each month has.

I second what BC said.

I also have 25 paid days off annually spread out that the parents are "discounted" for. I am still paid in full for all my closures, but the parents pay less on those weeks to better be able to pay their backup. They don't budget a year in advance as I do. This limits conversations about money to the bare minimum. It also prevents someone from leaving mid-year and not paying for vacation time during their enrollment. They never mind paying less, they do mind the invoices that are more. I just found a way to give them a NO that feels and sounds like a YES.

[dolores]

I invoice every 4 weeks at the weekly rate (wkly rate x 4). I charge for closings as I pay my employees for those. Parents get 1 week vacation without pay and I waive fee for the last week of August since I do not pay staff for that. That is all laid out in contract they sign so if there any questions I point them back to it.
I do agree with the comments to figure out what you want to make annually or the cost of care per child plus your profit and set your rates that way to be sure you are being compensated fairly...

[Unregistered]

The center does lose a week's pay.....Amy'sKids was quoting a poster that specifically said her center lost a weeks worth of fees ....because they didn't calculate it by the week and instead did the math per month."[/I]

I charge monthly. Some months can have 5 weeks, some 4, some 4+. Parents pay the same amount of money for each. I don't lose anything.
I am pretty sure, that in the case of the center weekly payment X 52weeks is equal monthly payment X 12 months.

[Blackcat31]

I charge monthly. Some months can have 5 weeks, some 4, some 4+. Parents pay the same amount of money for each. I don't lose anything.
I am pretty sure, that in the case of the center weekly payment X 52weeks is equal monthly payment X 12 months.

I get how it works

The poster you quoted specifically said “ Which basically meant if there was 5 weeks in the month, they didn't have to pay for that extra week.”

I charge weekly so don’t care either way.

[Jo123ABC]

I have a family that pays monthly and I prefer it! I do an invoice for the month. Some months are 4 weeks and some are 5. I break down my invoice by the week so they pay for however many Mondays are in the month. They're paid up to Jan 3rd right now which puts their due date for January's payment due the morning of the 6th. It will cover Jan 6-31. I don't do a discount but I actually kind of like the idea of one since I prefer a monthly payment! I offer 6 sick/vac days for them to use whenever they want throughout the year.

[AmyKidsCo]

As a provider it's easy to understand but I think what Cat Herder is trying to say is parents don't understand the math when terms like "monthly" are used verses "weekly" in regards to tuition.

Most providers get it. It's usually the parents that need to do the math or have it broken down for them.

I call it "Flat Rate Monthly" and emphasize the convenience of being able to budget the same amount each month.