Don't Let Parents Leave Owing You Money

"A parent left my program owing me money. What can I do?" I've been getting this question at least once a week from family child care providers for the last 30+ years.

There are two rules you can adopt in your contract that will ensure that parents will never again leave your program owing you money:

1) Parent will pay at least one week in advance.

2) Parent will pay in advance for the last two weeks of care.

If you enforce these two rules you will never have to sue a parent for an unpaid bill. These rules are reasonable and affordable. If a parent can't to afford to pay either of these amounts in advance, ask them to pay a little extra each week over time.

If the parent receives a state subsidy and pays you a co-payment, ask for the co-payment in advance.

Being paid in advance gives you more control if you decide to end the relationship. If you want to end your contract early, simply give the parent back the payment for the last two weeks.

Requiring advance payment can give you more confidence, financial security and peace of mind. You may be reluctant to enforce your rules if you are afraid that your clients will leave owing you money. Without this fear, you can be more assertive about enforcing your rules - and as a result you'll probably have fewer conflicts.

Over the years I've seen more and more child care providers institute these two rules without incident. It's the right thing to do.

Tom Copeland - www.tomcopelandblog.comImage credit: https://pngpress.com/paid-in-full-stamp/ 

For more information see my Family Child Care Contracts and Policies.