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Fee Collection Techniques
November 7, 2007
You never change things by fighting the existing reality. To change something, build a new model.
-Buckminster Fuller
In the popular Exchange book, Managing Money: A Center Director's Guidebook, members of the Exchange Panel of 300 offered strategies for dealing with the problem of late fees. Here are a few of their ideas...

Keep in close touch with all parents

Parents who are most likely to fall behind in paying fees are either those who are unhappy with the program and feel little motivation to pay their fees on time or those parents who are experiencing personal difficulties and feel uncomfortable asking for special consideration. Therefore, one of the most effective steps you can take to avoid fee delinquencies is to maintain good relationships with parents. If the director keeps in close contact with the parents, she will be able to detect signs of disgruntlement early and deal with them before they get out of hand. Likewise, if a director is on good terms with parents, they will feel more comfortable approaching her if they are in difficult straits and need to make some special arrangements on deferring fee payments.

Make it easy to pay
The more trouble parents have to go to in order to pay fees, the more likely they are to delay doing so. If fees are to be paid to the director, for example, and the director is frequently on the phone or not to be found, this will frustrate parents and result in payment lapses. Many centers have locked metal boxes with slots so that parents can drop their checks off effortlessly when they come to pick up their children. One center has a desk in its reception area so that parents can sit down and write out their checks. Other centers send out invoices with stamped return address envelopes so that all parents have to do is to slip the check in the envelope and drop it in a mail box.

Act quickly on delinquencies
Directors must be vigilant to keep overdue fees from turning into bad debts. By acting immediately when an account becomes overdue, you can often nip a problem in the bud. If you wait too long, the amount of money overdue may become so large that it is almost impossible for a family to pay it off. If you are reluctant to press parents when fees are overdue, this can also set a dangerous precedent. When people don't have enough money to pay all their bills, they tend to defer paying whatever bills they can without resistance. If they know they can pay their fee to your center a week late without any consequences, they are more likely to do so.


Managing Money: A Center Director’s Guidebook
is included in the Manager's Tool Kit that is on sale on our web site. Also included in the kit are...

* The Art of Leadership: Managing Early Childhood Organizations
* Stick Your Neck Out �" A Street-Smart Guide to Creating Change in Your Community and Beyond
* 250 Management Success Stories from Child Care Directors
* Exchange Article CD Collection #9: Taking Stock �" Evaluation Tools for Program, Teacher, and Directors
* Exchange Article Collection #5 - Staff Supervision

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Comments (1)

Displaying 1 Comment
Carolyn · November 18, 2007
Care.A.Lot ECE Training & Consulting
Oregon, United States


What this article states regarding securing payment of tuition or child care fees from parents is good. It is pro-active. However, you go further to discuss what may be done in the event that payments are not received within the time frame as per the school or child care policy. That's where the proactive position ends.

I never "wait and see" if parents are going to pay. Then I must REact to the lack of payment that is due. Instead, I've found, in my experience, that a simple reminder 2-3 days prior to the tuition due date, is much-appreciated by my parent clients and it surely helps them in paying on time.

Your article doesn't cover the various temperments of parents, their money habits, organizational skills, lack of experience, and self-management skills. These factors all play a big part in how, when and if parents are going to pay their tuition on time. If a parent is lax in remittance of child care or tuition for preschool, it is quite possible that they have a generalized weakness in this area. It may not be a matter of poor prioritizing at all. . . . but simply that the parent needs to develop some better skills for managing their monetary affairs and perhaps even other areas of their lives, in general.

Info and articles sent home in our weekly newsletter address issues of interest to parents of young children. There are some wonderful resources published on-line that make for great inclusions in our "Kid Chat" newsletter that goes home with the parents from our program.

In summary, play an active role in ensuring tuition and child care payments are made on time. Save the expense of an invoice with a SASE, which many of us can ill afford in these hard economic times. Instead, include a reminder on a half-sheet memo, on bright colored paper - sending it home so that each parent can have the heads up that their tuition payment is due, stating the date. This is a "Parent Ed" moment, as I like to call them.

Lastly, include articles in a weekly newsletter that will help to drive home messages that will assist in making ALL parents more aware. Many "Parent Ed" opportunities abound in this way. You preserve the parent's self-esteem and dignity by disseminating information that is valued and valuable to all. You refrain from singling out one parent who may be having difficulties with meeting their obligations, whatever the reason may be. It also is a kind way to keep this concern between the director and the parent. There should be no real need for other staff to become involved in a non-payment issue, which then becomes a possible concern because of confidentiality and privacy of family business.

Preserving parent self-esteem is every bit as important to the work we do with children. With using methods that promote healthy parent self-esteem, we are assisting parents in being better parents to their children. In the end, we are more likely to be paid on time and we preserve the cherished relationship between parent and provider, modeling healthy team support for the child!



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