Got A Great Idea From This Forum!

[Growing1atime]

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.

Actually she did the math right.

Calculation is:
52-2= 50
50 * 100 = 5000
5000/52 = 96.15

She charges this to the parents regardless if she provides care. So the two weeks she is off, she is still getting a paycheck. It is the same as teachers can do if you still want a paycheck in the summer. Instead of getting a larger check monthly for 9 months, you get a smaller check for 12 months.

I don't charge for time off either. But I am starting to rethink it.

[Kaddidle Care]

Ahhh - OK I get it. So the parents continue to pay even though their children aren't going those weeks.

[blessedmess8]

Actually she did the math right.

Calculation is:
52-2= 50
50 * 100 = 5000
5000/52 = 96.15

She charges this to the parents regardless if she provides care. So the two weeks she is off, she is still getting a paycheck. It is the same as teachers can do if you still want a paycheck in the summer. Instead of getting a larger check monthly for 9 months, you get a smaller check for 12 months.

I don't charge for time off either. But I am starting to rethink it.

Exactly! It's just hard to lose all that $ to close 2 or 3 days to take a vacation, etc! And, I know myself - I won't end up putting it back! I definitely feel ok about charging for the holidays!! Maybe I'll change my mind someday about the personal time off. Its not that I don't think I deserve it. I just try to see things from the parents' POV, too!

[momma2girls]

I have paid HOlidays and paid vacation days-

[SilverSabre25]

Ahhh - OK I get it. So the parents continue to pay even though their children aren't going those weeks.

All right, I get it too...well, if that's what works for you. I think parents (many parents anyway) would rather have two weeks where they don't actually hand you a check. I think they look at the immediate picture ("I don't pay you this week!") rather than the long-term picture ("I pay less each week but still have to hand you a check when I'm not getting care"). Do you see the difference? That's why I suggest charging slightly more each week and saving the extra towards your two unpaid weeks. It will feel more to the parents like they are getting something free.

[nannyde]

All right, I get it too...well, if that's what works for you. I think parents (many parents anyway) would rather have two weeks where they don't actually hand you a check. I think they look at the immediate picture ("I don't pay you this week!") rather than the long-term picture ("I pay less each week but still have to hand you a check when I'm not getting care"). Do you see the difference? That's why I suggest charging slightly more each week and saving the extra towards your two unpaid weeks. It will feel more to the parents like they are getting something free.

There's little chance that every week the parent writes the discounted check they are going to believe the four bucks they aren't paying is to go to the tuition that is paid when the provider is taking vacation. They are looking at one thing: Daycare is 96 bucks a week.

If you do this plan in order to avoid conflict for when they have to pay when you aren't working it won't be any different than charging a 100 dollars a week and telling them they have to pay when you aren't working. It will not translate into the parent putting the four bucks a week to have the monies to pay the provider when they aren't working.

Discounts for any reason are tricky. Most people don't really care what the discount is for... what it means over a years period of time... what conflict it is to avoid in the future. They just look at whatever rate you say they must pay is THE rate.

So getting paid time off has to be in your policies without mathmatical understanding on how it is calculated.

I don't like money discussions so I keep them to the interview process only. My pay is X dollars a week for the schedule of X to X daily ... five days a week. I take 18 paid days off a year and this is when they will be. I accrue 1.5 days of paid time off per month so if you choose to leave before I take my time off you will be required to pay your slots portion of that vacation time in your final check. I get paid for what I have earned whether you are here when I take it or not.

This way each slot generates 18 paid days off per year regardless of who is in them and what part of the year they are in them.

The only time I have to talk to clients about money is if they have a schedule change where they pick up earlier or later than their contracted time. I have a simple form they have access to that tells them for every fifteen minutes later per day they must pay five dollars more per week. So when they come to me with schedule changes they already know the fee will lower or raise dependent upon the pick up time.

I don't offer any free days for their absences.

This translates into having eight slots with the same fee coming in every week on each slot with NO discussions of money. I only have to discuss money if the schedule changes. Other than that... pay the same 52 weeks a year. When they leave they ask me how many days of PTO they owe me and they add it to the final check.

I can go many many months and never discuss money. I've had many years where I never have to talk about it to the majority of my clients. I have clients who have been here nearly five years and we have never discussed money once.

The less talk about it.. the less wiggle room... the less calculations... the better.

My clients all know I do NOT like talking about money so when they come to me with schedule changes they already have it down on what it will be. The convo lasts a few seconds and we are done. They all pay on Friday for the upcoming week and most transfer the money so I don't even have to receive a check.

So I do the work upfront (discuss PTO, what days I have, they don't get any free days) having the money discussions and then we get the rest of the relationship to be money talk free. I likey that.

[Kaddidle Care]

All right, I get it too...well, if that's what works for you. I think parents (many parents anyway) would rather have two weeks where they don't actually hand you a check. I think they look at the immediate picture ("I don't pay you this week!") rather than the long-term picture ("I pay less each week but still have to hand you a check when I'm not getting care"). Do you see the difference? That's why I suggest charging slightly more each week and saving the extra towards your two unpaid weeks. It will feel more to the parents like they are getting something free.

I agree with this too. I think the parents would much rather pay for 50 weeks than pay 52 and be paying for a sitter/back up care for your 2 weeks off at the same time.

[cheerfuldom]

I take paid vacations and anytime I have to close for emergencies are paid to. (That has RARELY happened in 4 years). I don't shortcut myself to make the parents feel better about daycare. I just write up my contract to include my preferences, they have all the info up front and then take it or leave it. That way, I am paid no matter what happens and there is no money discussions because its all up front, no discounts or refunds for any reason for anybody. I raised rates a few weeks ago and besides that, there have been no money discussions outside of interviews. The reason I feel that this scenario is "ethical" is that I have the perks of being self employed, nothing wrong with that. The parent gets ALL the info up front from day one, no secrets or deception with that. Once they enroll, they are doing it of their own free will and freely accepting my contract, no one is forcing them. So there is nothing unethical about me taking a paid vacations. The parents ALWAYS have the right to leave at any time, no one is being held hostage here. I am super reliable though so it is incredibly rare that I take any time off outside of my holidays and vacation and I think that the parents love that fact and it makes the paid holidays worthwhile. If you have an unreliable sitter, even if they take unpaid days off, its still a huge hassle for the parents and not worth it at all. You get what you pay for kind of thing.

[blessedmess8]

Well, I didn't just change my rates. I let the parents know up front that they are not paying for the 2 weeks. So, its not much different than those of you take paid vacations, except I am discounting them for mine throughout the year. I don't feel like I'll need to re-discuss it for any reason because it IS in my policies now and it has been explained to all my parents. If THEY need to put back the few bucks a week to cover alternate care, that's on them! I'd love to hear from someone who's actually used this method to hear how it actually does work. I don't fault or judge anyone who does take PTO! I agree, if it is I your policies up front, then people can take it or leave it!

[Abigail]

All right, I get it too...well, if that's what works for you. I think parents (many parents anyway) would rather have two weeks where they don't actually hand you a check. I think they look at the immediate picture ("I don't pay you this week!") rather than the long-term picture ("I pay less each week but still have to hand you a check when I'm not getting care"). Do you see the difference? That's why I suggest charging slightly more each week and saving the extra towards your two unpaid weeks. It will feel more to the parents like they are getting something free.

I agree with SilverSabre. I would rather get the fully deserved average weekly tuition and paid holidays. I'm going to take a few paid days for myself as well and additional days are unpaid. This gives the parents a chance to pay a babysitter or save the money when they must stay home from work. 10 paid holidays seems about average. You can always increase your rates and advertise as "You don't pay when I'm closed!"

[SilverSabre25]

Well, I didn't just change my rates. I let the parents know up front that they are not paying for the 2 weeks. So, its not much different than those of you take paid vacations, except I am discounting them for mine throughout the year. I don't feel like I'll need to re-discuss it for any reason because it IS in my policies now and it has been explained to all my parents. If THEY need to put back the few bucks a week to cover alternate care, that's on them! I'd love to hear from someone who's actually used this method to hear how it actually does work. I don't fault or judge anyone who does take PTO! I agree, if it is I your policies up front, then people can take it or leave it!

How about this: if you're so opposed to raising your rates a slight amount to cover those days off, then why don't you keep your rates the same, but put away the $4/week anyway? Then you don't have to worry about the income hit, and can still advertise to the families that they don't pay you when you're closed? Parents like that; they really do.

[blessedmess8]

How about this: if you're so opposed to raising your rates a slight amount to cover those days off, then why don't you keep your rates the same, but put away the $4/week anyway? Then you don't have to worry about the income hit, and can still advertise to the families that they don't pay you when you're closed? Parents like that; they really do.

Because, like I said before, I know I won't! Clearly most people think this is a bad idea! Lol! I'll be sure and update later to let everyone know how it works and whether or not I have to change it back!

[SilverSabre25]

Because, like I said before, I know I won't! Clearly most people think this is a bad idea! Lol! I'll be sure and update later to let everyone know how it works and whether or not I have to change it back!

No, not a bad idea, per se...just not the best idea. Partly because not having to pay the provider is what sells a lot of people.

You could set up an automatic transfer from your main checking account into a savings account of $x/week, where $x= 4 times your number of families. Then, you don't have to worry about remembering.