CM Club : Minding a teacher's child

[Pinner35]

Hi all

Just wanted some advice from experienced CM's please. I am due to start minding the daughter of a teacher. She starts with me in September for three days per week, term time only. Her mother would like to pay 12 equal monthly payments (rather than paying say £700 in January and nothing in August). but this means that she would always be in arrears and should she give me notice, then there will be a discrepancy and she will owe me money.

My DH, who is an accountant, says that to get round this, she should start paying from August. We are meeting next week to sign contracts, etc and I need to get this finalised. Is what DH is saying correct? Are there any better ways of doing this? I really like the family and am keen to make things so as smoothly as possible but I don't want to put myself in an awkward situation and be out of pocket.

Any advice?

Can you not take a month's fees as a deposit as well as her first month. Then if she leaves without giving notice you will have a month's fees.
it's how nurseries do it.

Yes, that's a possibility. I feel very awkward about the whole thing tbh.

Your DH is correct, her starting paying in August is a good solution - this will mean that she will sometimes be in arrears and sometimes in credit an so will share the burden of this rather than it all falling on you.

I would set out a formal written agreement saying that:

You will invoice for actual time booked
She will pay in 12monthly installments
Each month the invoice will show the current amount either in credit or arrears
The amount in credit/arrears should never be greater than £X
As and when she ceases being a customer, the amount in credit/arrears will be payable by either party to the other within 14 days of the end of the arrangement.

Presumably she is using vouchers so yes she needs to stockpile some now and pay a month in advance. Perfectly acceptable. I used to mind teachers children term time only and they are the best. I used to charge a slightly higher rate and then no fees during the holidays so I used to enjoy quiet holidays with my own children.
Be careful that if you have children that she works in the same county that your children go to school as holidays are not always the same. We used to check dates with each other way in advance so she could get a grandparent to cover if I wasn't available as my term time was different to hers. I didn't accept 12 payments though we used to do 2 weeks in advance, it was really easy she would transfer the payment a few days in advance and it would arrive in my account on the monday. Her husband also stockpiles the vouchers so their was always enough to pay me, and then over the hoildays they would stockpile the vouchers and then start paying me again at the beginning of each term. So if you don't want to accept 12 equal payments you don't have to.

Actually I've just done some calculations (yes I love a mathsy problem to solve) and if she pays the full normal fee in August that wouldn't be fair either as she would be significantly in credit throughout the year.

Two options for making it fair: (1) is that she pays half the normal monthly fee in august - then she will still be in a little credit throughout most of the year but the maximum amount of her credit and arears will be even so you are each taking the same maximum hit. (2) is to ensure that there are the same number of months of credit and arrears throughout the year - if she gives you in August an amount of money which is approx 63% of the normal monthly fee, you will be in credit for 6 months and in arrears for six months.

The following table assumes a fee of £50 for a minding day (can't make it look pretty:

Month MD Fee Paid Arrears/Credit
August 0 0 £310.00 -£310.00
September 12 600 £491.67 -£201.67
October 12 600 £491.67 -£93.34
November 12 600 £491.67 £14.99
December 9 450 £491.67 -£26.68
January 11 550 £491.67 £31.65
February 9 450 £491.67 -£10.02
March 10 500 £491.67 -£1.69
April 10 500 £491.67 £6.64
May 11 550 £491.67 £64.97
June 12 600 £491.67 £173.30
July 10 500 £491.67 £181.63

Hmm I didn't think it would look that awful. PM me an email address and I'll send it to you.

Thanks Heads...I'll PM you the exact details a bit later if that's OK. I do not have a mathematical mind, much to DH's annoyance.

I look after 3 teachers' children and another child whose parents also want to pay like this.
I calculate the charge over the year and divide it by 12, then invoice at the beginning of every month from September to August. I've never had a problem with non-payment with any of them so far.

I have people that pay the same amount each month. In addition to all the wonderful advice you have already been given ... I issue a statement each month which has a note to say if they leave, the balance is immediately payable (whichever way round it is).