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I would not undercharge. Lot new carer think charging under market value is good thing but it not. First, you will have expenses you maybe not considered. Flushing toilets use water, heat all day use power/oil/wood, insurance, toy get damaged with lot children and need replace, crib or pack n play or cot for sleeping, bedding, and food if it normally provided in your area.
$25 not much to work 10 or more hour day when you have all these expense and still have pay tax, CPP and maybe EI.
Big issue with offer cheap care, is it undervalue your time. After all expenses, it under $1 an hour. It send message to parent that your service not worth market value and the type client it attract will believe that your service not worth proper rate. It deter lot of people but the type people who undervalue their childcare are the same people who will pay late, pick up late, leave without notice and have no regard for your time or property. These not client you want unless you able to work and not be paid.
Daycare not cheap to provide even with group parent contributing to your income, it often less than min wage. If you under charge, you will quit within few month because you not able pay own bills.
There expense you can claim off your taxes - but unlike employment, you not getting refund cheque at year end. Expenses come off your taxable income and reduce the tax you paying, but even if you get tax bill to zero which not common, there no lump sum refund. Lot people think end year claim expenses and big cheque coming in but that never happen. Not able claim more expenses than tax amount would pay and when at zero, no credit given.
For example, I charge $38.00. After expenses, working 50 week last year with 5 children in care, I earned under $20,000 for 60 hour week, every week.
Last edited by Suzie_Homemaker; 12-22-2015 at 07:27 AM.
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