What to charge for home child care?

[ilovemygirl]

I'm a sahm but a friend asked me to care for her child a few months back. It was only for a short time and this was the last week she needed.
We worked out $30 per day/$150 per week which seemed really low to me but she insisted that she paid $20 per day/$100 per week to the last person. This is for a full 8 hour day, five days a week. I'm in a really high cost of living area in the northeast. All the big day care centers charge at least $250 per week. Now checking everything out a bit more, some of the smaller centers do charge between $150 and $200 per week.
I have to admit I'm pretty amazed by it. When I was looking for a mother's helper over the summer I couldn't even find a teenager willing to work for less than $7 an hour much less a grown responsible woman. At $30 per day I was making $3.75 per hour. That was less than minimum wage when I started working as teen which is twenty years ago now!
I want to continue to offer childcare at home but I don't know what to charge now. So my question is ... what do you/are you willing to pay for daycare?

[Alyantavid]

Well, we live in a pretty low col area. We use a small in home daycare/preschool and pay $16 a day. This covers 2 meals and 2 snacks. We do pay another fee for preschool and any other activities they do.

[Tilia]

I live in a low COL area. At a center, I pay $30 a day, at a home-based daycare I pay $20 a day. Those are both the rates for a 10 hour day (1/2 before and 1/2 after my shift at work). They include 2 meals and 2 snacks.

[ALittleBitCrunchy]

For 2 children, I pay $65 a day or $35 for a half-day (which is $165 for the 2.5 days I use) at a home daycare. I had been paying $180 for the same service at a center.

[MamaChicken]

I live in a little higher COL area and I pay $120/day for a 10-hour day (three kids).

[HollyBearsMom]

I don't get how people expect to pay less than minimum wage for childcare

She is taking advantage of you pure and simple.

I live in a high COL area and I pay a mom w/ a 3 year old daughter over $13 an hour to watch my child. I provide meals, snacks etc and they watch him in my home. I

I would expect to play less if it was licencsed in home child care situation where she watching more than just my child. I expect to pay more for the individual care.

My thoughts are that I think some one should net at least min wage after expenses so if she is watching multiple children that might break down to less than min wage per family.

[ALittleBitCrunchy]

Originally Posted by ilovemygirl

At $30 per day I was making $3.75 per hour. That was less than minimum wage when I started working as teen which is twenty years ago now!

Keep in mind that this is because you are only caring for one child. If you had 3 more children paying a similar rate, you would be making $14.00 an hour, which is much better than minimum wage. I know of very few home daycares with only one child and I imagine this is why. Just with my children, my provider is making $7.17 an hour.

[prothyraia]

Originally Posted by HollyBearsMom

I would expect to play less if it was licencsed in home child care situation where she watching more than just my child. I expect to pay more for the individual care.

The work my childcare provider is doing is as important (if not more) than the work I am doing; I want her to end the day with as much money as I do.

[sewchris2642]

When Dylan first started home dc at age 6 mo (1998), I paid $25 a day for pt or $100 a week for ft. When he stopped going 5 years later (2003), it was up to $35 a day/$150 a week. Pt was less than 4/5 days a week regardless of # of hours. She provides 2 meals, 2 snacks, has bottles and formula, stores breastmilk, and wipes; parents provides diapers and a change of clothes. She also has a stash of extra clothes.

And as ALittleBitCrunchy posted, you are watching only one child. The provider I used had 8-12 kids during the school year (ratio of 4-6 to 2 adults) and up to 16 kids during the summer (ratio still 6:2). She also had a license and runs her dc as a business. She abides by all our state regulations, participates in the state food program and dc reimbursements for low income families, keeps track of expenses and deductions. And keeps her rates low so her parents can afford good quality dc. You have an informal arrangement. You are grossing that $3.75 an hour. Are you planning on declaring and paying taxes on that income? Are you planning on getting a license and keeping track of expenses so you can make deductions at the end of the year? You agreed to the rate up front just as when you hire a babysitter for evening. You should have done the math then.

[Tilia]

Originally Posted by HollyBearsMom

I don't get how people expect to pay less than minimum wage for childcare

She is taking advantage of you pure and simple.

I live in a high COL area and I pay a mom w/ a 3 year old daughter over $13 an hour to watch my child. I provide meals, snacks etc and they watch him in my home. I

I would expect to play less if it was licencsed in home child care situation where she watching more than just my child. I expect to pay more for the individual care.

My thoughts are that I think some one should net at least min wage after expenses so if she is watching multiple children that might break down to less than min wage per family.

I expect to pay less than minimum wage because I make minimum wage. How could I pay more than my salary? Makes no sense.

[HollyBearsMom]

Originally Posted by Tilia

I expect to pay less than minimum wage because I make minimum wage. How could I pay more than my salary? Makes no sense.

Why should a childcare make less than min wage for watching a single child? Seriously, I don't get why a CCP should not make a living wage.

Again- if she is watching multiple children then she should at least net min. wage. Each family may pay her less than min wage per hour but in total she should at LEAST make the min.

[ilovemygirl]

Thanks for the replies. I am in my home and am not a licensed daycare so I don't expect to make what a big center is but on the other hand shouldn't a loving mommy in a home environment who is giving a child their full attention be just as valuable, if not more so?
I also understand that times are tough and money is tight for everyone .. if they weren't for me I wouldn't be working at all I certainly don't want to overcharge/rip people off but I kind of feel like it's insulting for someone to want me to care for their child (what could be more important) for unlivable wages and I think that applies to each individual mom whether I am watching 1 or 15 children. I would feel differently if it were a single mom on a low income really down on her luck but these are moms with decent jobs that may not be wealthy but are certainly better off than I am.
It sounds like the 20-30 a day is what a lot of moms are paying though so I suppose I need to price that way whether I feel it is fair or not

[ilovemygirl]

Originally Posted by sewchris2642

You agreed to the rate up front just as when you hire a babysitter for evening. You should have done the math then.

I just want to clarify that I'm not complaining about my previous arrangement. That is done, I agreed to it and so on ... what I am talking about is going forward with a new family/families that are not friends/relations.

[Altair]

I live in a high COL area (NYC) and pay $10/hr for my friend's MIL to watch my child occasionally during the work day when Daddy or grandma can't. She has another child there for $10/hr also, and also watches my friend's daughter full time for free. She doesn't like to have all 3 at once though, so we tend to only overlap with my friend's daughter while the little boy is at preschool during the day.

To me, $10/hr is low. I'm used to people charging $15-20/hr here.

[shelley4]

i do home daycare, and charge $32 a day (anything over 4 hours) ($16 for half day (4 hours or less)) PER child. the parents supply diapers and wipes, i provide home cooked meals and snacks, art supplies, etc. i don't make a whole lot per hour per child, but because i have 4-5 daycare children, i come out okay. i have my ECE, and my families are under contract with me.. they are "allowed" 2 wks vacation per year, but other than that, they pay me whether their child(ren) show up or not. unless me or one of my children is sick (and so, *I* have to close)..i don't charge for that. but if daycare child is sick, they still pay.

[~pi]

I am in a high COL area. When we used home care (not licensed, but experienced and with excellent references) we happily paid $50/day for one child.

I basically could have taken my student stipend and deposited it into our child care provider's bank account, but as far as I was concerned, that was by far the most important thing for which we paid money, so I didn't mind at all. I valued our CCP's work hugely.

I did have the luxury of having that opinion because we could afford it. We had only one child and a two-income family, with one decent income (DH) and one student income (me.)

[Drummer's Wife]

I would call around (or email on craigslist) to find out what the going rate is. Here, for liscensed home daycares, they charge $20-25 per day, with some cheaper, and some closer to $30 per day.

I, personally, wouldn't want to do childcare for $3 an hour, but, i would take in an additonal 2-3 kids to make it worth my time. I do think, though, that the other mom is right about rates. A nanny that comes to your house will often charge $$ by the hour, but a SAHM doing daycare can't expect near the same pay, IMO.

[sewchris2642]

Originally Posted by ilovemygirl

I just want to clarify that I'm not complaining about my previous arrangement. That is done, I agreed to it and so on ... what I am talking about is going forward with a new family/families that are not friends/relations.

Sorry, I misunderstood. But at $3.75 an hour, a working mom is probably paying half of her paycheck for dc unless she makes substantially more than minimum wage herself. Any more than that and she wouldn't be able to live on what is left after paying for dc. Its a fine line between making what you are worth and getting what your clients can afford. You could find that you are pricing yourself out of the business. For an example, I'm a dressmaker, working at home. My rates are based on $20 an hour. My experience and training is worth twice that but my client base can't pay that. If I insisted on it, I'd be out of business. As it is, my prices are just high enough to weed out the clients who want couture sewing at Walmart prices.

[NightOwlwithowlet]

I pay $20 for my CCP to pick my 7 yo up from his after school program at 6pm, give him the meal I packed, and I pick him up from her house at 745pm or 8pm.

If she watches him until 11pm or watches him for the day 8am to 330pm, I pay her $45 dollars for her time. I provide all his food and any money if they go out to the movies or something. I pay a little more then she normally charges because she's great with my son and he loves them (she has kids his age).

I pay friends who watch him when DH is traveling $50 dollars for an 8 hour day or $80 for 12 hour day. I'm dropping him off at 6am on my way to work. Most of the time, we exchange child care now that the kids are older.

[Addy's Mom]

In my area, licensed home day care is about 75% the cost of licensed day care centers. I paid $400 a week for a center, and home care was about $300 a week. Those prices have gone down a bit since the recession though.

I'd probably say 60 - 65% of average day care center costs would be reasonable if you are not licensed.