Thanks, pastalafiesta. You are spot on. It is my anxiety that is making a mountain out of a molehill in this situation.
So an update: this morning NDN's kids were both ready on time so everything went smoothly. Hope the same continues for the next 2 weeks.
About accepting lifts for the past 1 year, I totally accept that i was not assertive as I should have been and refused the lifts politely. I need to clarify though that she didn't take DD and me to school and back every day, she took me to school at pick up time and DD and I came back with her and her kids. She also took me and DD to school some mornings, but not every day as her DH did the morning drop offs mostly. In a number of occasions, I have refused her lifts by giving excuses as I mentioned above. I have in fact asked on here before, for advice on how to refuse her lifts politely. She always says 'we have to help each other' (we are both hailing from similar ethnic backgrounds). I felt really bad to to put a complete stop to her lifts because I didn't want to seem rude and she seemed to enjoy the company. But I KNOW that is not an excuse. I totally accept that. I need to grow a backbone and learn how to put my foot down in future.
Another reason for me to not accept lifts from her every day was because her you for child would sometimes come straight into our house when we come home and refuse to leave. So on quite a few days, he has stayed at ours playing with DD while neighbour takes older child for tuition. This got a bit out of hand but I couldn't refuse because I felt I was obligated to let him stay because her mom helped us out. So I would typically tell her that DD wants to go to the park after school, so we would go to the park and I would time coming home to ensure neighbour has already come home and the kids are safely inside her house.
Neighbour has asked to DD to come to theirs and play with her kids. She used to ask DD directly without checking with me first so if I refused DD used to get upset with me. This has happened quite a few times. She always asked me to let Dd come and play but I used to refuse by giving all sorts of excuses but sometimes you run out of excuses, don't you?
One day, neighbours invited DD for one of those play dates, I said we'll see but last minute I had to refuse because I had to go pick up my DH from office as he injured himself. That day, I texted her to tell her that DD won't be coming unfortunately but she didn't reply so I'm pretty sure she was pissed off with me. I felt strangely relieve, however, because I felt she has finally got the message and will hopefully leave me alone. But then when I bumped into her the next day she was a usual bubbly, pleasant self. Now in hindsight, I wonder whether she was friendly towards me despite all that because she knew she will start working one day soon (she was a SAHM until now, just like me) and will need my help to do childcare.
Sorry for the long post. Thanks for reading.