"Holding fee" normal for in-home daycare spot?

[Anonymous]

OP here. No, this doesn't apply to tuition at any point. It's simply to guarantee we get an infant spot when we need it in August.

I just talked to one of the daycare's references on the phone tonight and she raved about the place, said they'd never had any problems, her daughter loves the providers and totally understands Spanish from the bilingual program, etc. Backed up the good feeling I'd had when visiting.

I think we're going to do it. Not having to worry about daycare for the next 6 months is a big deal for me. It will definitely make my maternity leave less stressful.

Thanks for all the input.

[Anonymous]

I know comparing centers to in-home daycares is like apples and oranges ... but for some perspective, at our center, if you were offered a spot now and wanted to hold it to guarantee that you'd have it in August, you'd be paying monthly tuition for that slot from now until you used it - and that fee wouldn't be applied to future tuition. So, think 6 full months of paid, but unused care/tuition. $400 seems very reasonable in comparison, especially if it gives you peace of mind that you have a safe nurturing place for your child when you need it.

[Anonymous]

Anonymous wrote:I know comparing centers to in-home daycares is like apples and oranges ... but for some perspective, at our center, if you were offered a spot now and wanted to hold it to guarantee that you'd have it in August, you'd be paying monthly tuition for that slot from now until you used it - and that fee wouldn't be applied to future tuition. So, think 6 full months of paid, but unused care/tuition. $400 seems very reasonable in comparison, especially if it gives you peace of mind that you have a safe nurturing place for your child when you need it.

It's surprising that in-home daycares don't do the same. How can they afford not to??

[Anonymous]

I think many of us wish we could. The reality is there are so many more in homes to choose from then centers the parents would absolutely balk at the idea and go to somebody else. Everybody would have to be on the same page in order for this to work. Yes, it is a lot of revenue lost.

[Anonymous]

What I found is the one expense we won't cheap out on is child care. We'll cut back on just about everything else, but the safety and security and peace of mind of knowing the DDs are in good hands is worth it. I'd say spend the $400 if you really like the place.

That said, I will certainly be happy when our DDs are finally in elementary school and I'll put that $70k/year we spend on our nanny towards paying down our mortgage!

[Anonymous]

OP here. It's actually $600 (I never said $400....one of the other posters used it as an example and I just never corrected.) I agree that daycare is one expense that's worth the money. That's why we decided to do it. It's just tough to switch from one kid in care to two and feel like we're just bleeding money now with all the additional expenses (we're also setting up a second 529 savings account, trying to fund our Roths, etc etc.....stuff everyone does, but it's all just coming at once right now). I am quite happy to have found a provider I think will be a good fit.

[Anonymous]

Anonymous wrote: Every in-home center makes its own rules so I don't see what's wrong with hers. Sounds like maybe she's been burned by parents who say they will use her and then back out at the last minute. Losing a $50 deposit isn't going to hurt much but you're less likely to back out if you have $400 invested.

+1. I would try to negotiate that it gets used towards the first two weeks of daycare though....

[Anonymous]

Ours had a $100 deposit that supposedly gets applied to the last week but honestly, she's so wonderful that I think most people let that slide and it's used as a bonus..

[Anonymous]

Anonymous wrote:Ours had a $100 deposit that supposedly gets applied to the last week but honestly, she's so wonderful that I think most people let that slide and it's used as a bonus..

So basically the provider is supposed to hold a spot for free? She's losing income while waiting for OP's kid to actually attend and regular fees kick in.

[Anonymous]

$400 is nothing. Take the spot. I'm looking to enroll my infant in December and have already spent $900 on waitlist fees. And I have been told by a few DC directors when I toured that they may have a slot for me in September if I am willing to pay to hold it, at a cost of $2,000 per month. So I am looking at having to pay more than $6,000 to hold a slot, which we simply can't afford. Seriously, $400 is a drop in the bucket given what everyone else charges. Take it. And yes, this is standard practice in this area because the cost of living is so high, the cost of child care is the highest in the nation, and the demand for infant care is so great.

[Anonymous]

Anonymous wrote:

Anonymous wrote: Every in-home center makes its own rules so I don't see what's wrong with hers. Sounds like maybe she's been burned by parents who say they will use her and then back out at the last minute. Losing a $50 deposit isn't going to hurt much but you're less likely to back out if you have $400 invested.

+1. I would try to negotiate that it gets used towards the first two weeks of daycare though....

Are you really *that* low? Shame on you.

[Anonymous]

Anonymous wrote: I think many of us wish we could. The reality is there are so many more in homes to choose from then centers the parents would absolutely balk at the idea and go to somebody else. Everybody would have to be on the same page in order for this to work. Yes, it is a lot of revenue lost.

Most (even licensed) in-homes are shitty. The few good ones can change anything they want. Under the circumstances, they *should* charge anything they want. The supply does not meet the demand, not even close.

My bare minimum is no scree time. Absolutely zero.
And I'd like 100% organic everything.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Ours had a $100 deposit that supposedly gets applied to the last week but honestly, she's so wonderful that I think most people let that slide and it's used as a bonus..

So basically the provider is supposed to hold a spot for free? She's losing income while waiting for OP's kid to actually attend and regular fees kick in.

I'm the PP you're quoting - in our case, the spot wasn't opening up until a week before we needed it, so no, she wasn't losing any money (well maybe a week).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ours had a $100 deposit that supposedly gets applied to the last week but honestly, she's so wonderful that I think most people let that slide and it's used as a bonus..

So basically the provider is supposed to hold a spot for free? She's losing income while waiting for OP's kid to actually attend and regular fees kick in.

I'm the PP you're quoting - in our case, the spot wasn't opening up until a week before we needed it, so no, she wasn't losing any money (well maybe a week).

That's fine. But in a case where the spot is being held for a few months it's not reasonable to think that it will basically be held for nothing.

[Anonymous]

Totally worth it - it's one less thing to stress about while on maternity leave. If you really felt great about the daycare, do it and then quit looking!