i dont do a deposit but the other girls do it as the same as you would for a rent deposit....like a gaurentee for you, that IF the parent ever pays late or takes off with out paying you still have that backup. I wish I did it, and have been burned many times by people who show up the first week and don't come back or people who get upset with me for what ever reason and decide to go somewhere else. usually along with the deposit a provider will require two weeks notice for removal of care on both sides, those times the deposit will serve as last payment due. It really is a smart way for a provider to protect themselves a little better. i also find a deposit would be helpful for a "promise of future arrival" say you had someone who called for care and agreed to bring their child to you next month for care, you stop advertising for the spot when they pay the deposit, that ensures they will come and assures them you will hold their childs spot.