Paying Monthly or Weekly???

[Crazy8]

I am considering offering my families the ability to pay a monthly tuition instead of weekly. Are there pros and/or cons to doing it one way over the other??
Right now I am paid weekly, with one family paying bi-weekly. All my families pay in advance (friday before week of services). If I switch to monthly payment will be due the 1st of the month for the entire month -this is how all the dc centers and preschools do it as well.
Would it be way too confusing if I have some doing monthly and some staying weekly???
I know I need to multiply their weekly rate by 4.333 to get their monthly but is there anything else I need to consider???

[Meeko]

I have some parents pay monthly (state pay). Some pay twice a month (1st and 15th) and some pay every other Friday and some pay every Friday.

As long as it's in advance, I don't mind how it comes. Parents are contracted to a certain schedule. (I don't want to be expecting a month of pay and get told I'm only getting a week). They have to give me at least a months notice if they want to change their pay schedule.

To get my monthly fee, I multiply the weekly fee by 52 weeks and then divide by 12 months..

[bice99]

I only accept monthly tuition. Based on 50 weeks per year, divided into 12 payments. I am closed Christmas and Spring Breaks, with one week of pay at Christmas, the other week and SB unpaid. But since parents pay the same year round, I feel like I get paid Due by the 1st of each month. $25 per day late fee (including weekends).

[Rachel]

Here the standard is monthly. They need to give me a check by the third (or postdated checks), but it can be written until the 10th (not my rules, it's how the subsidized pay works). The government kicks in their part on the 15th. If a parent wants to give cash, they have until the 3rd to give it in. So basically I get 2 paychecks very close to each other (10th and 15th), but it works out okay. Dh gets paid on the 1st so it all evens out in the end.

[Crazy8]

I only accept monthly tuition. Based on 50 weeks per year, divided into 12 payments. I am closed Christmas and Spring Breaks, with one week of pay at Christmas, the other week and SB unpaid. But since parents pay the same year round, I feel like I get paid Due by the 1st of each month. $25 per day late fee (including weekends).

I thought of doing it this way but was afraid people might balk at the idea of "losing" their week's vacation (I give one week free and I know I would like to not have to pay that extra $200ish right before a vacation!).

I don't have any state paid clients so that wouldn't be an issue.

[Crazy8]

I am still a little confused if doing it monthly instead of weekly ends up being the exact same thing at the end of the year????

I have a family who takes summers off, no charge, so would paying monthly end up being more for them?? Is there any way I end up making less by doing it monthly instead of weekly??

[bice99]

I thought of doing it this way but was afraid people might balk at the idea of "losing" their week's vacation (I give one week free and I know I would like to not have to pay that extra $200ish right before a vacation!).

I don't have any state paid clients so that wouldn't be an issue.

Is it their vacation or yours? BTW - up until this year, parents always paid me one week less in December and March. Then this year, I raised my rates by $5 per week for my PT kids and that adds up to 2 weeks of pay so I just divided it out. One mama balked (I showed her this year's handbook which she had signed and told her that I had reminded her to look at the major changes to tuition and vacation) so she paid. All the other parents didn't say a word.

[bice99]

Is the summers off family teachers? I charge them half rate to hold their spot for the next fall. Due on June 15th. Non-refundable. I do figure that one out by the week (last year it was 10 weeks long). June is also prorated (usually 3 weeks). I don't lose money doing it the way I do it and it makes book keeping so much easier.

[Crazy8]

Is it their vacation or yours? BTW - up until this year, parents always paid me one week less in December and March. Then this year, I raised my rates by $5 per week for my PT kids and that adds up to 2 weeks of pay so I just divided it out. One mama balked (I showed her this year's handbook which she had signed and told her that I had reminded her to look at the major changes to tuition and vacation) so she paid. All the other parents didn't say a word.

The families get one free week - they can use it for their own week off or they can use it when I take my vacation week. I figured I'd base the monthly rate on 52 weeks and then just let them deduct that one week's payment the month they are using their free week.

But I also like getting that extra week's pay in those 5 week months - I know it would equal out to the same if I had the same clients all year but that doesn't always happen either so I could potentially lose money by averaging it out monthly.

[wdmmom]

I offer monthly pay to my clients. All but 2 take advantage of it. I don't take the weekly rate times 4.33. If they pay up front for a full month, they are charged at 4 weeks (a little incentive to pay monthly).

I also let my clients choose what day they pay each month and they are due the same day each month. I try to keep it split up so that I'm not getting a boatload of money all at once.

I have 1 parent that pays the 1st, another pays the 16th, one pays the 19th and one pays the 20th.

It works out well considering my hubby is only paid once a month!

[Crazy8]

I offer monthly pay to my clients. All but 2 take advantage of it. I don't take the weekly rate times 4.33. If they pay up front for a full month, they are charged at 4 weeks (a little incentive to pay monthly).

I also let my clients choose what day they pay each month and they are due the same day each month. I try to keep it split up so that I'm not getting a boatload of money all at once.

I have 1 parent that pays the 1st, another pays the 16th, one pays the 19th and one pays the 20th.

It works out well considering my hubby is only paid once a month!

That is a nice incentive but based on my current clients - I'd be losing out on $3,000 a year if I did that!! I'm not willing to give up that much of my income!