How to Make Payment Policies for Home Daycare

Payment policies for childcare are super important. It’s even more important to set your payment policies BEFORE you need them. Find out more.

Payment policies for childcare are super important. It’s even more important to set your payment policies BEFORE you need them. Find out more.

You and everyone you are serving in your business needs to have a good idea of what to expect from the business relationship. You as the provider are in charge of this business and you are the one who can make it a success or a failure.

How to Make Payment Policies for Home Daycare

The number one thing I see providers doing that hurts them is not running their childcare like a business. Providers, by nature, are lovers and givers. They are big-hearted people who want to help people.

Payment policies for childcare are super important. It’s even more important to set your payment policies BEFORE you need them. Find out more.

If you give people discounts because you feel sorry for them and then you can’t pay your bills, who are you helping? That’s not good for that family because you as a stressed-out provider who can’t pay her bills are not going to be giving your best in care for their children. Payment policies for your childcare will help with this tremendously.

How to Make Payment Policies for Home Daycare

Guess what else? You WILL end up resenting them. You’ll see them with a new tattoo or on Facebook at the zoo or a concert and you’ll be saying, I can’t afford a concert because I didn’t get my full pay from them and then just look at them living it up! Stick to your payment policies for your business.



Another thing I have found after over 20 years of providing care. If you give people a break, they will expect more and more breaks until they become a source of stress for you. It’s your business, treat it like a professional business. If you make payment policies for your childcare early and stick to them, you will have a long and successful business that you will enjoy.

What kind of payment policies should you have for home daycare?

No pay, no stay. If you have a family that constantly doesn’t want to give up your fees, you may ask them how they would like working at a job where they had to chase their boss around and beg for money. I bet they wouldn’t keep working for that person.

We don’t work for them, we provide a service for them, but will you run your business that way? This is a business and businesses cannot run if clients do not pay for services provided. 

Parents can forget and asking for a check occasionally is understandable. People are busy and can get distracted. If you care for someone’s children 40-50 hours a week, they SHOULD make you and your fees a priority! Your payment policies can help with that. 

I have seen so much burnout because of this problem. Don’t let it happen to you. It’s up to you to make sure you get paid. If you have trouble asking for your money because it’s embarrassing, send parents a text.

Other providers have suggested using an invoicing program to send invoices to parents for payment. There are some great ones out there. Brightwheel, FreshBooks, ProCare Software, PayPal, cash app, Venmo, Square and KidKare are a few programs you can use to invoice your parents electronically. It makes it easy for them to pay too. 

Tom Copeland says to say; “I need a check from you” so you don’t have to say give me my money. Maybe there is wording you can use to make it easier for you. Your pay should not be negotiable to parents, stick to your payment policies. They either pay, or they don’t have childcare. Check out more from Tom here

How to Make Payment Policies for Childcare

Get paid for daycare in advance

Parents should pay for care before it is given. For example, you can have all of your parents pay on Friday for the following week. When I arrange payments, I allow each family to choose their paydays for me.

The key is, they HAVE to stick to it. If you say every other Friday, then it’s every other Friday so I can budget my money to pay my bills. That’s an important part of my childcare payment policies.

Many providers don’t like parents paying at different times and they have everyone pay on a set day, such as Monday. If you want to set one day that everyone has to pay, it’s your business, put that in your payment policies. You are in charge of your business. Run it like one and you will be happier day to day.

Any post on this blog may contain affiliate links which pay me a very small commission for items you purchase using the links but costs you nothing extra. 



 

Home daycare rules

You should never allow parents to not pay when their children are absent. I have seen providers give a free week every year. I have also seen them scrape to pay their bills that week. If kids are sick or families go on vacation, it’s not up to you to fund that. They pay for the spot and there shouldn’t be any surprises. Payment policies are great for keeping your income consistent.

Home daycare policies

Do your parents get paid holidays at their jobs? I’m willing to bet most of them do. There’s no reason why you shouldn’t be paid for your holidays. New Year’s Day, Memorial Day, 4th of July, Labor Day, Thanksgiving Day and even the day after, Christmas Eve and Christmas Day are all days you should not have to take unpaid. You can have it in your payment policies in your contract and your parents will know ahead of time. Take that time for you and enjoy it.

Policies and procedures

Paid vacations. This one is negotiable. I take a lot of time off because I’m old and I need it. I found out years ago that I am able to be an awesome provider if I give myself breaks. When I take no time off, that’s great for the parents, but not as great for the kids. I am grouchy, tired and stressed out when I don’t rest. So I take at least 15 days per year off, usually more. My contract says 15 days is the least.

Many providers get paid for their vacations and I think that’s great. It’s a good idea. I want to treat people how I would want to be treated so I just don’t. They may have to pay another provider during my absence or any number of things.

I plan my vacation days for the year in January and my parents know all year when I will be closed. If they don’t have back up they need to use a center for care. I am just one person and I need days off.

I know at the beginning of the year that I won’t be paid those days so I can budget ahead of time. It works for me. I put money back each week so I will have money for when I’m off. You need to do what works for you.

I have heard providers say they charge more per day to cover their days off so they can put money back. Not everybody is a saver, so if that won’t work for you, then charge for your days off. It’s your payment policies, do what you need to do.

Policies for family childcare

Obviously, if you keep DHS subsidy kids in Oklahoma, the law says you can’t charge them for any of your days off. If they are on a weekly rate, you may get paid if they don’t miss too much, but other than that, you are at the mercy of DHS. Please don’t charge them. It’s illegal in Oklahoma and I don’t want you to get in trouble. The law may be different in other states.

Child care payment

I know it seems harsh to talk turkey about money, but being stressed out about money is the number cause of burnout in childcare and in life. Make your money work by setting up solid payment policies and you will make your business work. Most caregivers are not made for the business side. They are nurturers. You have to be both in this business or you won’t last.

Taking care of your interests is the best way to have a long successful career. Be the best you you can be by taking care of these problems before they arise. You need to have a signed contract that lays these payment policies out for your families or you will always be chasing your tail. Run your business with your head and you will have plenty of energy to give your heart to the kids.

Click here for more information about writing contracts and policies.
Don’t forget to pin for later.

Payment policies for childcare are super important. It’s even more important to set your payment policies BEFORE you need them. Find out more.

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8 comments

  1. Courtney says:

    Just came across your blog and it has been so helpful. I’m hoping you can give me some advice. I have done childcare in my home for 11 years. For the last 5, I have watched the same children in one family. I have never raised my rates in all this time and have actually added “discounts” as they have added children to their family. I would like to make a bit more money, but I’m not sure how to determine how much or if that is even an appropriate business move? Thank you.

    • Christina says:

      Your income is important and it’s always an appropriate business move to make a living wage. If you raised rates and this family left over it, is that going to ruin your business? No, you can get other kids. Make sure you are keeping names on a waiting list when anyone calls. They would want a raise at their jobs in 5 years so even if they complain, which they shouldn’t, they would understand it’s your livelihood. I suggest adding to your contract that you raise your rates yearly so it softens the blow for people. Also, think about this. If you have 7 kids and you raise the rates for each one $5 a week, that’s $35 a week or an average of $147 a month. Is that enough to help your family live a better life? How about $10 a week per child? That would be closer to $300 a month, so start by deciding what you need. Then, work on approaching them.

      You can say something like, the cost of food and supplies has risen over the past few years fairly significantly and in order to continue doing my best job serving your families, I need to raise my rates. I want to continue providing care for children as I love what I do and am committed to your children, so I’m going to have to increase the rates to XXX a week starting XXX.

      I would give them about a month’s notice to prepare, you can give them longer if you think it’s necessary, but a month is more than generous. I raise my rates about every other september, but my contract says every september, so the years I don’t raise them, everyone’s excited and I’m the hero. 🙂 Good luck, I know you can do it.

  2. Shelta says:

    Thank you this is so true I’m a day care providers also

  3. Judie says:

    Thank you for your advise I’m going to do this!!

  4. Jaquietarr says:

    Thank you for your most valuable information

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