Any Reason I Shouldn't Charge Monthly?

[ardeur]

I am still unlicensed and only providing care for one family right now, and they pay monthly. Not a problem.

I hope to continue requiring monthly payments when I expand and become licensed soon. But I see a lot of caregivers charging weekly or every 2 weeks. Is there a reason for this? I feel like I'd go crazy keeping track of weekly payments and that would only invite more opportunity for late payments.

[KristinsHomeCC]

In my area, only about 1 out of 20 families could pull the whole month up front. I have one family that pays bimonthly and the rest weekly, all living paycheck to paycheck.

If you live in a good, high income area - Id say it's reasonable to atleast break it down to 2 payments per month. I like getting paid weekly, I manage it wayy better in spending habits ::

[KristinsHomeCC]

Also - I require payments on Fridays by pick up for the following week to avoid late payments. I tend to find the $15/each day its late (i.e. an extra $30 bucks monday morning) does a good job at reminding about payments!

[CityGarden]

I love monthly payments - you could have them on the 15th of the month prior to care (so March 15th for April tuition) instead of on the first as many people have to pay their mortgage/bills/etc at the start of the month.

The down side is some months have more than 4 weeks but I factor that into my rates/vacation time etc..

[Unregistered]

I have always charged monthly since I've been open which is five years. Payments are due by the first of the month. I don't collect a 2 week deposit in case they terminate care at the last minute so being paid monthly takes care of that. In their contract it states no refunds regardless of attendance and rates are not prorated if they terminate care before the end of the month. I have had no problems so far. I do refund if I am the one terminating care that way the family doesn't have any issue they can complain about, plus I no longer need to provide care since I have their money back.

[Mike]

My plans are to offer weekly or monthly, with a small discount on monthly, so if they can afford it, they save money. Monthly makes bookkeeping easier and less collection hassle, so a small discount is worth it.

[AmyKidsCo]

I have 2 rates, one weekly and one monthly. The monthly is 1/12 of the annual total and is a flat rate, regardless of closings, absent days, vacation, etc. The weekly includes pro-rated vacation so parents don't give me a check during my vacation weeks. The annual total for weekly ends up being a little bit more than monthly, to encourage parents to pay monthly. It's nice having less paperwork with monthly payments, but financially it's easier for us to budget weekly ones.

[Lil_Diddle]

I have no problem offering what works for the family, as long as it's upfront. I have a few weekly, one bi-weekly and one monthly. As long as they pay, I know how to budget by knowing what's coming in and what's going out. All my families know that I make deposits on Tuesdays so any scheduled payments that are not in by Tuesday's incur late fees of $5 per day and after day two it is a possibility that I may not provide care. I say possibility because some of my families that I know and trust, I might give them a break, but still charge the late fee.

[Blackcat31]

I have no problem offering what works for the family, as long as it's upfront. I have a few weekly, one bi-weekly and one monthly. As long as they pay, I know how to budget by knowing what's coming in and what's going out.

Same here.

I totally understand wanting to be paid monthly but as a parent, that would be a huge selling point (or deterrent) for me when looking for care. There would be no way I would have agreed to or been able to pay on a monthly basis. I would have to pass on a program that required that payment arrangement.

I give parents the option of weekly, bi-weekly or monthly payments. Once they choose an option, they stick to it.

I have 12 families total and budgeting is no problem on my end. I have families that utilize all 3 options for payment.

The only requirements is that payment dates (weekly, bi-weekly etc) remain on the same schedule unless I am provided written notice at least 2 pay period prior to wanting to change and everyone pre-pays. No services are provided without advance payment.

Almost all my parents pay via bank transfers so I don't have to worry about getting to the bank to deposit or having to mobile deposit anything.

[LysesKids]

I have always charged monthly since I've been open which is five years. Payments are due by the first of the month. I don't collect a 2 week deposit in case they terminate care at the last minute so being paid monthly takes care of that. In their contract it states no refunds regardless of attendance and rates are not prorated if they terminate care before the end of the month. I have had no problems so far. I do refund if I am the one terminating care that way the family doesn't have any issue they can complain about, plus I no longer need to provide care since I have their money back.

This is how I do and have for 7 years now... I was told twice that I would flounder because nobody would pay monthly but guess what? I bucked the traditional way & I get better clientel as a perk

[Kajada]

In my province, licensed providers must charge monthly. Well, it's actually a 4-week schedule, so that the fee is the same every month. I'm sure most, if not all, non-licenced providers also charge monthly, as it's the norm here.

[CityGarden]

This is how I do and have for 7 years now... I was told twice that I would flounder because nobody would pay monthly but guess what? I bucked the traditional way & I get better clientel as a perk

I will say that I am building my enrollment slowly - however I am very happy with the clients who have chosen to enroll in my program.

[kendallina]

I charge monthly, but I'm in a town where most people paid monthly ( university), so it works well. I have one family that occassionally asks to pay most of their tuition at the beginning of the month and then the rest of the payment when the dad gets paid ( every two weeks). That works for me, they are long standing family and don't mind doing that for them all.

[Controlled Chaos]

I charge monthly and love it. My parents like not having to remember tuition more than once a month. I like not collecting money constantly. If it was a deal breaker for a potential client, I would probably offer bi monthly with automatic bank transfer.

[Jupadia]

I charge weekly with payment due on last day of care the week prior to care being given for payment. But have parents that will pay a couple weeks at a time, don't care if they pay ahead at all. I know that many of my parents would have a hard time though paying each month.