Estimated reading time: 15 minutes
Other than giving Christmas gifts, not all parents have heard about giving their daycare provider a holiday bonus.
Today, I want to discuss whether a parent should offer a daycare provider a holiday bonus.
Is There Such A Thing As Holiday Bonus Etiquette?
Not everyone is fortunate to get a holiday bonus at the end of the year, so relying on the Budget is the ideal way.
If you are self-employed or a contractor, you have to look out for yourself in the world of employment, which means you can set guidelines and rules for your customers.
It’s not only the daycare provider many are unsure about when it comes to giving a holiday bonus.
If you are fortunate to have a maid, nanny, groundskeeper, or other contracted service people working for you, giving them a holiday bonus is nice but not necessarily required.
Related: Do you get a Christmas Bonus, or do you Budget?
When you work for a large company or organization, you may find that your employer is generous and may gift you a holiday bonus.
You’ll still be paying taxes on it if it’s not cash.
On the other hand, you may have a Grinch for a boss, so you’ll get nothing except a pat on the back.
I don’t take offense to this because not all business owners are ready to hand out a holiday bonus to their employees.
Vacation vs. Holiday Bonus
Vacation pay is one thing, whereas a holiday bonus is another.
Times may be challenging, especially for small businesses in local communities struggling because big box stores dominate the consumer scene.
Some employees understand and would rather have a job than wonder how they will pay the bills or where to find work.
In all my years of working, I was given grocery gift cards and turkeys, which I never expected.
My employers were good to me for the most part and always took care of the employees.
A small holiday bonus was a lovely Christmas gesture, but most didn’t expect it.
On the other hand, my wife worked for an employer who would give a holiday bonus of $1000 at the end of the year.
It was a magical time for many families who came to rely on the holiday bonus to pay for food and Christmas gifts.
Over the years, as the company grew, the holiday bonus was structured, then shrunk, and before she moved on, it had disappeared completely.
The holiday bonus system was no longer sustainable.
It was tough on the employees who banked on the money, but new employees would not know what they’d missed.
This caused a bit of a disconnect with disgruntled employees who said they needed the money.
Some would say that the company should continue to pay even a small holiday bonus.
However, others were fine since the company put on an elaborate Christmas party.
One fan wrote last week asking for tips about giving her at-home daycare provider a holiday bonus.
Let’s read what she has to say.
Dear Mr.CBB
I belong to a small mom’s group in our city where all our kids attend the same in-home daycare provider.
The lovely woman who watches our children does a fantastic job with them. We’ve been with our daycare provider for five months, so not even a year.
I have a problem because some moms pay her two weeks for a holiday bonus, which I feel is too much.
She does require us to pay for days missed when our child does not show up to daycare or if we go on holiday, but that is all.
My husband and I would give her a card made by our 13-month-old son, plus a $50 gift certificate to a local restaurant for Christmas.
I’ll be honest and say I feel guilty for giving so little; if the other parents find out, I will be mortified.
They seem to think we are made of money since my husband has a good job.
It’s hard to put on a “rich face” when that’s false.
We are in debt to $100,000 and then some, and it’s hard to keep up some months, so that the extra money would help us.
Should we pay off our debt or give the daycare provider a two-week holiday bonus?
Any suggestions from you or the readers would be great.
-KM
Holiday Bonus Dilemma
My wife has friends who have given the equivalent of two weeks’ pay for a holiday bonus at Christmas to their daycare provider, along with a gift.
If you pay your daycare provider $150 a week to watch your child, you will give them a $300 holiday bonus if you follow the above suggestion of two weeks’ pay.
Other parents we know give nothing because they can’t afford to, and there’s nothing wrong with that.
There are no hard and fast rules about giving out a cash holiday bonus to anyone, especially a big enough compensation to cover the holidays.
I understand that when the kids are not coming to their home over the Christmas holidays, self-employed daycare providers may lose the pay they typically get from the parents.
On the other hand, many would say that is the line of work they chose to get into, so they should budget for limited income during December.
Pay The Daycare Provider Or Save Money
Even though the parents may save money by having their kids home from daycare, owners ask parents to provide a holiday bonus for those weeks away right from the start.
Many parents rely on the extra money they will save to pay for their Christmas festivities.
This money may also cover when the parents keep the kids home over the Christmas holidays or if they go on vacation and pull their kids from daycare.
Most facilities ask that you pay for your child’s spot even when you pull them to go on vacation, but not when the employee goes on vacation.
Essentially, you are paying for two daycare providers when your primary daycare provider is on vacation unless the parent(s) are home on holiday themselves.
What ends up happening for some parents is they are forced to take holidays at the same time IF they even have vacation days to accept.
This is a controversial topic in the daycare world because not everyone agrees.
Vacation Rules Differ Amongst Provinces
Not everyone gets vacation time from their employer until after a certain amount of years of employment, although a vacation pay account builds during that time.
Every province/territory has different rules for vacation pay in Canada.
Some daycare providers will ask for a paid vacation right from the start, which is very common and different from a holiday bonus and is very common.
This means the daycare provider will go on vacation, and the parents pay for their average daycare costs and still have to find someone to watch their kids.
However, this is a controversial topic between parents and home daycare providers in the daycare world.
I also considered whether there would be daycare providers who pick favorites over the other kids because their parents offer a holiday bonus or other perks.
I know that sounds outrageous, but believe me, it happens.
Money talks for some people and is loud.
If you plan to keep your kid in daycare, we were told it’s best to pay up the holiday bonus and vacation pay to secure an ongoing spot for your child.
That’s odd since you’re paying them off to keep them happy.
I’d probably steer clear of any daycare like this.
Remember that some daycare facilities may not allow parents to offer cash gifts to the teachers, so it’s always best to ask.
My sister-in-law was only allowed to send homemade gifts to the daycare facility her son went to, and if she went on vacation, she still had to pay for the time her son was not in daycare.
She never had to pay for the employees’ vacation pay since this was the employers’ responsibility.
Should You Budget For Christmas?
Yes, you should, especially if you want to avoid creating debt since some people use credit cards and other money loans to fund the holidays.
We use a Christmas Reserve Fund that we budget for throughout the year and helps keep the holidays stress-free.
Knowing all the financial facts is essential before you sign on the dotted line with a daycare.
Holiday Bonus Christmas Gift Ideas
Should you give a Christmas gift to your daycare provider?
Sure, you can do this instead of or combined with a cash bonus (if you so choose to offer one)
It may be a hand-made card from the kids with a box of chocolates, homemade baked goods, a grocery gift card, or a gift card for a mom to pamper herself.
If you are a coupon/deals expert and have a stockpile of health and beauty products at home, you could create a gift basket with chocolates or other items you know they may like.
Alternate options would be to give a gift card to a restaurant, bookstore, movie, coffee shop, or mall or have your kids make something special like a Christmas tree ornament.
Maybe your daycare provider enjoys an excellent wine with dinner, so this is also a gift option.
Lottery tickets are also big favorites for Christmas bonus gift ideas.
If your daycare provider has assistants who work with them, you may consider a Christmas gift/card for them.
Does A Holiday Bonus Fit Your Budget?
This seems to be the norm from the moms we’ve talked to in our area who either run a daycare or have kids in daycare.
You shouldn’t feel pressured to give a holiday bonus/gift or feel guilty if you cannot offer one.
It’s the thought that counts, and remember, it’s not always about the money; it’s the recognition employees seek.
Discussion: Should daycare providers get a Holiday Bonus from the parents?
Leave me your comments below, and I’ll respond to you.
CBB Week At A Glance
This week has been pretty good for us as we spent quality time together as a family.
I did manage to get the lighted wreath up outside and finish some bits around the house.
I took a day off this week, although I’m not feeling the best, and neither is my wife.
We did manage to bring our son to the gym, where he had a fun-filled 2 hours of running around with friends.
Getting him out of the house for exercise is excellent, even during winter.
We don’t mind doing this for the $10 fee for all 3 of us to get in; plus, he gets to interact with other children.
My wife did some shopping yesterday at the outlet malls in Toronto and scored a couple of pre-Christmas bargains for herself, where she saved 75% off the original ticketed price.
Our trip to see Santa was an epic fail as our son had a meltdown on his lap.
We tried twice, but it was a no-go, so we will return and try again on Monday as I am on vacation again (insert smile).
Last year, it was great as our son smiled for the camera in one go; this year, not so much.
Ah well, he’s more aware now, and I likely would be afraid of a guy dressed in red with a big beard, too.
Published This Week
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- How we effectively curb spending when we have to: Our November Budget Update
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- Quick Apple Cinnamon Rice with Raisins
Budget Brags
Submit your Deal or Brag:
If you have a brag that you want me to share, email me at canadianbudgetbinder@yahoo.(ca) < remove brackets) or fill out my contact form by Friday each week to have your brag considered for the Saturday post.
Hi Mr.CBB and Fans!
Our friends tossed this water cooler because they did not use it anymore.
The water cooler works perfectly, so I jumped in to grab it as ours no longer cools.
This frugal score has saved us over $100 in our Budget instead of buying a new one for our kitchen.
-Colleen K.
Making A Difference (MAD)
Hi Mr. CBB and Fans!!
My name is Latoya, and I’m the voice behind Life and A Budget, a personal finance blog created for millennials who share like-minded pursuits of eliminating student debt through the art of side hustling.
Being featured here on Canadian Budget Binder this week is an honor!
I grew up in a financially illiterate household that focused on consumption and getting by until the next payday came around. Savings and creating generational wealth were obsolete topics — something I learned about once I left the nest.
In college, I made my share of bad financial decisions by living beyond my means and financing my life through student loans.
It was encouraged because I was doing what was considered “right.”
The problem was I was borrowing more than I needed to obtain my education.
I was financing clothes for the semester, computers, books, and groceries.
What makes things worse is that I even had a job last year of college! I was simply irresponsible with money.
I didn’t need extra student loans, but I took the refund checks anyway, in addition to a wallet full of credit cards.
Ultimately, I left with a bachelor’s and a master’s degree, plus $79,000 in debt.
Personal finance, to me, is all about living on a budget.
Therefore, I created Life and A Budget to document my journey to freedom from student loan debt while still living life abundantly.
I hope to encourage the next young college student to make wise financial decisions before they walk across the graduation stage.
I also want to inspire college graduates like myself, who’ve obtained an obscene amount of debt, that it is possible to pay this debt off and live to tell about it.
Frugal Recipe
Food and grocery shopping is a BIG part of CBB because food is a large part of the Budget that people struggle with most.
If you would instead buy convenience meals or products, consider cooking homemade meals or baking from scratch.
Not only will you save money, but you will be proud of what you accomplished, and you’ll see that from the smiles on those you feed.
If you don’t know, I have a second Facebook page called The Free Recipe Depot, where I share recipes from other Food Bloggers worldwide.
This week, our Top Recipe Pick goes to Lizzy over at Your Cup of Cake where she shows us how to Decorate Ornament Sugar Cookies for Christmas!
Top DIY Project
This week, I logged into Facebook only to find the one and only Nicola Don sharing her creative flair with Christmas crafts.
This year, she wanted to go with the Grinch theme and create this beautiful window painting for her home.
She’s decorated it with lights; as you can see, it’s a stunner!
Nicola found the picture on Pinterest and did it free hand, where she outlined it in a white window crayon and then filled it in.
Just in case you are wondering what Nicola used to draw on the window and colour it in, she’s given me a photo below of the
- Crayola Window Writer Pens
- Window Crayons
- China Markers
She purchased the Crayola pens and crayons at Walmart, where the China markers came from Staples for $6. She uses various techniques to bring the art to life.
This talent would be a great way to earn extra income for Nicola.
Saturday Google Giggles
Every week, thousands of people visit Canadian Budget Binder because they searched online and found my blog.
If you notice any spelling errors below, they are intentional.
I share how they typed their search engine query to land on my blog.
- Two Positive Dollar Store Pregnancy Tests– I’m going to say…Congratulations then! Sometimes I think women hope the internet will talk to them when they are unsure but your doctor is your best bet.
- How to make money in Canada– Get a job! Sometimes the most apparent skips our minds, I suppose.
- Need an extra $5000 a month– You better have a fantastic income, career, or product idea or win the lottery!
- Should you sell your house to become mortgage-free– Well, that’s one way of doing it, lol.
- Buying second-hand clothes is funny- I fail to see the humor in this one, but to each their own, I suppose.
That’s all for this week’s friends, but be back here next Saturday to enjoy the next edition in the Saturday Weekend Review Series.
-Mr.CBB
Related Articles:
- The Saturday Weekend Review #145: Not handing out Halloween Candy makes neighbour feel cheap
- The Saturday Weekend Review #146 : Should I Spend $35,000 to Renovate My House or Move
- The Saturday Weekend Review #147: A Huge Water Bill Could Come Your Way If You Don’t Do This
- The Saturday Weekend Review #148: Stealing Outdoor Christmas Decorations Is the New Money High
- The Saturday Weekend Review #149: Would You Take Free Money If You Didn’t Need It?
I definitely agree that it’s completely up to you if you give a bonus to someone or not, no matter what their occupation is. You don’t have to give a bonus and you shouldn’t feel bad about giving less of bonus than what others may be giving. It’s all up to you and what your personal financial situation looks like. This can turn into another case of “keeping up with the Jones” if you aren’t careful.
The favoritism thing weighs in my mind because I know people can be very influenced by money gifts. We’re looking for a lower cost high quality daycare but in this area, a two week bonus can be anywhere from $700-1300, depending on attendance but they all require 15-30 day notice for withdrawal and do not prorate for holidays, sick days or vacation days. Even if you go on a month long vacation you have to pay for that month of daycare to hold your spot.
We’re not in debt and make good money but not such good money that those costs don’t make a dent! We’ve only been at our daycare for a month so I think it’s too soon to give more than a nominal gift but in comparison to the 2 week model, it seems like anything we’d give would be nominal :/
As you know our daughter works at a daycare and is raising our grandson as a single mom. When he was little he went to a home based licensed day care. The woman there usually had 3-4 small ones and, during school holidays the older brother and sister of one of the little ones in her care. As it was a licensed care home my daughter paid the company and they paid the lady at the home. The grandson just loved it there and they loved him. My daughter would get her a gift card usually at Christmas for Walmart or Michael’s Crafts so she could get the kids craft supplies. If he wasn’t able to be at the daycare he would go to work with his mom and she got a staff discount on his care cost. Her provider bent the rules some with her as she was aware of how things have been with my hubby being ill. If my daughter had a staff meeting he stayed at her house, usually overnight and the company was none the wiser. She did it out of affection for both of them.
At the daycare where my daughter works she was getting gift cards from the parents of kids in her room. Once she was given a DVD player by the parents, dad worked at Future Shop so we figure there was a nice employee discount involved there. She was very good with the kids in her care and the parents really appreciated what she did for their kids. These days I don’t think she gets those gift cards so much as she isn’t in the class rooms so much as she is now a program supervisor. Her daycare has before and after school programs and programs for the school holidays as well so she doesn’t get time off over Christmas, other than the stat holidays and weekends.
Your little guy is old enough now to play strange with people and he clearly wasn’t impressed with that strange man in the funny suit holding him!! Maybe next year he will be OK, he will be getting to the age where Christmas is a big deal!!
Colleen will enjoy that water cooler she got free!! Those cookies look good!! Nicola amazes me with her talent!!! I need to look for those markers at Walmart!!! Have a good weekend!!
Wow! I like the painting done by Nicola. I just wish I could do this DIY project. Thanks for sharing Mr. CBB.
I hate how suddenly everyone “expects” a tip for doing their job. Which brings me to my question. Am I wrong in not tipping my massage therapist? They’re a regulated medical profession. I don’t tip the dentist. Or my podiatrist? I’m an accountant. I never got a tip after doing someone’s taxes. I once had the place where I got the massage (I still go there) call me after my first visit asking if everything was ok or if I had any issues. I suspect they thought something was wrong because I didn’t tip.
I’m not big on tips either because we simply don’t have the cash in the UK or at least I didn’t so I hardly ever ate out. We do tip here when we go to a restaurant but you’re right too many people are expecting tips these days from the coffee shop to the hairdresser. I don’t get tips either for doing my job! Thanks Susan