Got A Great Idea From This Forum!

[blessedmess8]

I'm kind of scared to post with the fear that I'm new and posting something that's been over posted and I'll be reprimanded for it! But, it is nothing "negative," so hopefully I'll be ok!

I was reading and saw a post about a provider who bills her parents a yearly rate, divided by months and she figures in 2 weeks of unpaid time off for herself! I LOVED that! So... I sent out an e-mail Friday!

Also, being that I earned my Bachelors degree in May (FINALLY!) I decided to give myself a bonus and I told all my parents I'd be giving myself paid holidays now! (I have always just not charged for any day I was not opened.) I know the paid vacation can be a hot topic - I saw a post on the parent forum that got pretty nasty! So, I was worried! Parents seem to have conflicting views on this. But, I know all my parents get paid holidays and whether I opened or not, I would rarely have kids on those days anyway.

I was pleasantly surprised when one of my parents e-mailed me back and told me she was "happy to pay me for holidays."

This is going to make my life so much easier! Now my pay will be the same every month instead of different, depending on if I closed for any reason! It's hard to close 2 days at Christmas time and lose hundreds of dollars of pay when I'm trying to buy gifts! Or lose hundreds when I close a couple of days for family vacation! That's when you really don't need a dent in your cashflow! I hope it works out! Has anyone else done this? Did it work for you? Any specific pitfalls I need to look out for??

[Crazy8]

Glad to hear your parents took the info so well!!! I'm one of the lucky ones too that always has parents who feel I "deserve" more than I give myself sometimes, LOL!

I am confused by the yearly rate thing - I haven't read that one here. Can you explain it in more detail? I charge my parents weekly, some choose to pay every 2 weeks and that is fine but I am always afraid if they pay too far out I'm going to end up with issues if they are leaving, etc. I like to always be where I wouldn't have to refund anyone.

[MamaBear]

I do this too... I started it about a year after I started doing daycare... I've been doing it @ 5 years now. I've never had a parent question it or complain. If they did, then they are not the kind of parents I'd want here anyway Good for you doing that. It does make lie SO much easier!!!

[blessedmess8]

Glad to hear your parents took the info so well!!! I'm one of the lucky ones too that always has parents who feel I "deserve" more than I give myself sometimes, LOL!

I am confused by the yearly rate thing - I haven't read that one here. Can you explain it in more detail? I charge my parents weekly, some choose to pay every 2 weeks and that is fine but I am always afraid if they pay too far out I'm going to end up with issues if they are leaving, etc. I like to always be where I wouldn't have to refund anyone.

Sure! (I was confused at first, too!) It is still a weekly rate.Here's the math: Say your rate is $100/week. There are 52 weeks in a year. You want to go ahead and figure in 2 weeks of unpaid time off for yourself. Instead od multiplying $100/week by 52weeks to get a yearly rate, you would multiply it by 50. So, that's $5,000 a year and parents can pay it out weekly at a rate of: $96.15/week. (That's $5,000 divided by 52 weeks.) Basically it is just figuring in your unpaid time off so that you can close when needed and not take a hit in income all at once. I told my parents I would keep a log of days I closed and if for any reason I went over the 2 weeks, I would deduct it from that month.

Does that make sense??

[blessedmess8]

I do this too... I started it about a year after I started doing daycare... I've been doing it @ 5 years now. I've never had a parent question it or complain. If they did, then they are not the kind of parents I'd want here anyway Good for you doing that. It does make lie SO much easier!!!

Whew!! Good to know! Everything is so "trial and error" with this biz!

[MamaBear]

Sure! (I was confused at first, too!) It is still a weekly rate.Here's the math: Say your rate is $100/week. There are 52 weeks in a year. You want to go ahead and figure in 2 weeks of unpaid time off for yourself. Instead od multiplying $100/week by 52weeks to get a yearly rate, you would multiply it by 50. So, that's $5,000 a year and parents can pay it out weekly at a rate of: $96.15/week. (That's $5,000 divided by 52 weeks.) Basically it is just figuring in your unpaid time off so that you can close when needed and not take a hit in income all at once. I told my parents I would keep a log of days I closed and if for any reason I went over the 2 weeks, I would deduct it from that month.

Does that make sense??

Sounds like a nice idea for parents because the rate is so low. But what happens if the parents do not keep their child in the daycare all year? Just wondering...

[MamaBear]

I meant earlier that I still charge for my holiday days off... But I charge a flat weekly rate - not divided up through the year. I have a lot of military families that come & go, so this would never work for me. But its a nice idea!!

[Crazy8]

Sounds like a nice idea for parents because the rate is so low. But what happens if the parents do not keep their child in the daycare all year? Just wondering...

This is one of the things I was wondering as well. Most of my families stick around for years but there are always some who don't and even the ones who've been around for a while will leave mid-year at some point (usually for school) so they are getting a lower rate whether I take the time off or not.

I also have never taken 2 weeks of unpaid time off so it definitely wouldn't be worth it for me to do things that way (doesn't mean it isn't good for others of course!!).

[blessedmess8]

I don't take that much time off at once. I guess that might be an issue, but I'm not worried too much. I have a waiting list and I just figure whoever steps in to the spot will finish paying out the year! We will see if it works out!!!

[Michael]

Sure! (I was confused at first, too!) It is still a weekly rate.Here's the math: Say your rate is $100/week. There are 52 weeks in a year. You want to go ahead and figure in 2 weeks of unpaid time off for yourself. Instead od multiplying $100/week by 52weeks to get a yearly rate, you would multiply it by 50. So, that's $5,000 a year and parents can pay it out weekly at a rate of: $96.15/week. (That's $5,000 divided by 52 weeks.) Basically it is just figuring in your unpaid time off so that you can close when needed and not take a hit in income all at once. I told my parents I would keep a log of days I closed and if for any reason I went over the 2 weeks, I would deduct it from that month.

Does that make sense??

Whew!! Good to know! Everything is so "trial and error" with this biz!

I don't take that much time off at once. I guess that might be an issue, but I'm not worried too much. I have a waiting list and I just figure whoever steps in to the spot will finish paying out the year! We will see if it works out!!!

I wanted to show you here with the mutli-quote function that you can reply to several members at the same time. Just click the MUTLI-QUOTE button for every post that you want to reply to, then use the POST REPLY button at the bottom as you normally do.

https://www.daycare.com/forum/showthread.php?t=24341

[momma2girls]

To me everone, I repeat everyone- deserves a paid vacation!!! No matter what you do in life, you deserve it!!
I have been providing excellent care for over 9 yrs. now, and I have had paid vacation in all but 2 yrs. of it!!

[nannyde]

Sure! (I was confused at first, too!) It is still a weekly rate.Here's the math: Say your rate is $100/week. There are 52 weeks in a year. You want to go ahead and figure in 2 weeks of unpaid time off for yourself. Instead od multiplying $100/week by 52weeks to get a yearly rate, you would multiply it by 50. So, that's $5,000 a year and parents can pay it out weekly at a rate of: $96.15/week. (That's $5,000 divided by 52 weeks.) Basically it is just figuring in your unpaid time off so that you can close when needed and not take a hit in income all at once. I told my parents I would keep a log of days I closed and if for any reason I went over the 2 weeks, I would deduct it from that month.

Does that make sense??

I wouldn't do that. It's upside down. In your scenario you are better to take the 100 dollars a week and put away $3.85 per week per kid and have that to use for the two weeks of vacation.

If you discount the parents THEY are keeping the 3.85 per week and you are relying on them to be willing to give that to you at the point where you take a vacation. I would rather keep it myself and put it away and not charge them for the two weeks off.

You never know when they are going to leave. If they leave before you take the time you will have given them a 3.85 per week vacation discount and you don't get the pay from them when you do take it.

I charge the same rate 52 weeks a year and take off 18 days. I also accrue paid time off at 1.5 days per month. If the kid leaves before I take my set vacation time the parent pays the unused portion of the PTO.

[blessedmess8]

I'm going to try it! Worst case scenario: It doesn't work and I have to change it back! Nbd. I just won't charge for my personal time off. I can't make it seem ethical in my own mind! I know a lot of providers do it, but I feel like if you have to pay someone else to keep your kid or use your own PTO, you shouldn't have to pay me, too!

[SilverSabre25]

Sure! (I was confused at first, too!) It is still a weekly rate.Here's the math: Say your rate is $100/week. There are 52 weeks in a year. You want to go ahead and figure in 2 weeks of unpaid time off for yourself. Instead od multiplying $100/week by 52weeks to get a yearly rate, you would multiply it by 50. So, that's $5,000 a year and parents can pay it out weekly at a rate of: $96.15/week. (That's $5,000 divided by 52 weeks.) Basically it is just figuring in your unpaid time off so that you can close when needed and not take a hit in income all at once. I told my parents I would keep a log of days I closed and if for any reason I went over the 2 weeks, I would deduct it from that month.

Does that make sense??

You're doing the math wrong. Your rate is $100/week * 52 weeks = $5200/year. If you want two weeks of "unpaid" time off, divide that $5200 by 50 to get two weeks "free": $104/week. Now you stock away that extra $4 each week into its own account, and voila! you get "paid" for two weeks of "free" vacation.

[Kaddidle Care]

Something didn't seem right with that when I looked at it too. How could $96.00 per week be better than $100.00?

Careful about too much calculations - you may end up ripping yourself off!

The $104.00 per week x 50 weeks makes sense.