There is nothing wrong with a caregiver telling the parents of a 3yr old "I am no longer comfortable serving formula to your child while in my care, my understanding of the nutrition requirements for preschoolers is that formula simply fills their tummy preventing them from eating healthier options blah blah blah".
I think it is a combination of the two thoughts here. While we cannot dictate how parents raise their children we are in a position to present information in an open, nonjudgmental way. From there they are open to do as they please with that information.
At the same time, we are home based care providers can pick and chose who we have in our care and if we are finding that parents are raising their children in a very different way than we are comfortable with we can give notice to end care. The way they raise their children does impact our daycare and therefore ourselves so there are plenty of cases where there just isn't a good fit.
Whether or not giving formula in place of real food at the age of 3 fits this situation is for the OP to determine. In the least the caregiver can set the limits they are comfortable with, preferably after open dialogue with the family to come to mutual terms (even if that is just both sides being more informed and continuing as is).
Obviously if we chose to be very picky about how parents are raising there kids we run the risk of having empty places in our daycares...but again that is up to us.
This situation could very well just be misguided nervous parents. Formula companies make a toddler line of formula for these specific parents. They advertise their formula for these specific families. And with all the talks and concerns about getting a well balanced diet and all the vitamins and minerals etc a parent to a picky (at home) child truly can feel that they are doing best by their child by providing formula.

































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