Weekly or monthly rate?

Just wondering how you charge for daycare. Do you charge weekly? Or do you provide a flat monthly fee?

For me it's weekly, $200. Parents have the option to pay me biweekly or each week. They all opted to pay weekly. So every Monday, I get their payment.

I had considered a flat monthly rate of $800 but essentially that would mean payment for only 20 days ($800/$40). However, most months I'm providing more than 20 days of daycare, therefore I would be losing money, so that's why I choose to do the weekly route. Just wondering if there was some advantage to this flat monthly rate that I'm not seeing. Thanks.

I think weekly is a better bet

I charge a weekly rate. They must pay at drop-off the first day of care that week - or no care!

The only advantage to the flat monthly rate is that it is paid at the beginning of the month and then it is over and done and there is no chance through the month for the parents to negotiate a lesser rate if their child was away.

If you go with a monthly rate take a closer look at the calendar and figure out the average number of days and go from there if $800 is too low then add two days and charge $880 a month. Look at the full 52 weeks of the year to get your averages. Then months with 21 days pays the same as months with 23 days so it balances out. The monthly rate works fine if you choose the right monthly rate.

Personally I am paid weekly at a flat rate every monday.

I do a weekly payment every Thursday. Thursdays seem to work great. I hold a one week deposit for all the parents.

I wouldn't do monthly because I think a large number like that can be intimidating to ask parents. Asking parents for $800-900 a month is a lot. I know I would have had a heart attack as a parent when I was using daycare if I had to pay a large lumo sum every time...especially the first month. It was hard enough for me to pay a deposit and then pay the following week again :yes:

I charge monthly. I went that route as it seemed to be the norm around here. I honestly never even thought about doing a weekly rate although it doesn't seem like too bad of an idea. I like the idea of monthly because then if by chance I have to hound for money, it's just once a month.

I get payment for each week on Monday morning at drop-off.

I get paid monthly in advance by three parents, and the 15th and 30th after the fact by the other two it works. I like the fact I get a large sum at the beginning of the month and then another payment in the middle. I do a montly rate but that includes two weeks paid off plus six flex days so I figure it evens out. Here most people pay monthly I don't think I know of anyone who pays weekly. The agency's and daycare's all charge monthly in advance here so I suppose people are used to it.

I charge by the month. I find that this works better for book keeping. Every month they pay the same amount. I charge as if there are only 4 weeks in a month and I bank the days I have not been paid for as holidays, with parents still paying the same amount. You could charge this way or charge for 4.5 weeks per month ---eg--$40 per day X 5 days per week = $200. X 4.5=$900.per month. I put a note on my door reminding them of the date that payment is due.
I prefer parents paying at the beginning of the month as I have had some parents with late payments. I can't imagine these parents being on time for payment every week.
What ever works for you stick to your guns and make sure that you get your payment on the designated day.:thumbup:

I also get paid monthly (IN ADVANCE!!), as it is the "norm" around here, too. It is nice to get the lump sum, but admittedly a weekly or 2 week schedule would be nice for budgeting.
I do tell parents that we will work out whatever arrangement is best for them. I would take 2 payments a month, etc, provided it was paid in advance of care.