Daycare rates

[apples and bananas]

I am exactly like Playfelt. I freeze rates for current clients. Their rates last no more then 3 years since then the child will be in school. Then they are set to the current b/a school rates.

As soon as a client goes on mat leave, their rates go to the current mat leave rates and if they come back full time they go up to the current daycare rates at that time.

All of my clients know this and appreciate that I'm not raising their rates unless their situation changes. It's a bit of a pain from an accounting and tracking point of view, but it's what works best in the long run for the daycare.

[treeholm]

I had one parent who told me she wouldn't need a receipt, and I told her that was up to her. I was legally required to provide it, and if she chose not to use it, that was fine. I think she got the message pretty quickly that there would be no rate reduction since I issue receipts for everyone, whether they need them or not.

[sandylynn]

Thanks so much for all the replies....bottom line....deciding how much I am undercharging myself....what is the going rate? Thanks for any input....Also ....when claiming all monies, how much should one put aside for taxes, (Canada pension etc.)Then we take how much we end up after paying all the taxes and divide it by the 10 hours the person uses and ya....one makes about 2.50 an hr....SERIOUSLY

[sandylynn]

Thanks for your reply gravy_train....just having a difficult time trying to figure out what the going rate is...I see everything from 35.00 to 70.00 a day!

[sandylynn]

OK, one more question and then I will SHUT UP! LOL....Do home daycare rates vary by location....rates in my area seem to be on the lower end...while the homes in my area sell on the higher end (650,000)????

[5 Little Monkeys]

I make $3 per hour PER child...so technically $12/hour. One parent is not responsible for paying my whole hourly wage, they are responsible for paying 1/4 of my hourly wage. If you are allowed 5 than they should be paying 1/5 of your hourly wage and so on. Figure out what number will work for you...it needs to pay your bills, allow some extra money and be a number that parents can afford to pay as well.

Daycare rates vary greatly between provinces and they even vary between cities/areas. I charge $30 a day but in a small community only 30 minutes from me, a friend charges between $20-25.

It will all depend on your expenses how much you will owe at income tax time. We own our home so have no mortgage which is great year round....than income tax time comes along and I usually don't have enough expenses to claim to get my numbers down. I expect to pay around $2400 so I put away around $300 a month. Once you have a full year of daycare and do your taxes you will have a better idea of what your numbers will look like year to year.

Last year I wasn't as strict as separating my daycare bills...if I was at the grocery store and only needed milk for dc I paid for it on our grocery bill. This year I have separated them even if it's only a $5 receipt. I buy a lot of toys second hand online and now keep a record of all that and get receipts.

[playfelt]

A good way to get a feel for rates in your area is to go to the home page of daycare bear and put your own postal code in the search box. It will bring up a list of daycares starting with the ones closest to you. When you read through their ads you will be able to also see their open hours and read a bit about their daycare and some have pictures. That will help you price yourself so you are competitive with your area.

The price varies a lot and sometimes by just a street away depending on things like demand, traffic patterns, schools served, etc.