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There was a really interested post about this recently.
There are definitely a lot of things to look at. Is this relative going to be relying on this money completely to live off of? Will you be providing insurance, etc benefits? How many hours per week?
I used to nanny 1 year old twins and their 3 year old brother for a family friend. I was paid $350 Cdn a week for 6 hours a day, 5 days a week....if that gives you an idea.
I agree with PP that a lot comes into play here. I also had another job to support myself evenings and weekends so I didn't rely on my nannying for wages.
@EvaBostonTerrier: I haven't talked to her about these things. I know she is retired and this would not be her main source of income, but I just have no idea how to begin thinking of a salary.
How many hours a day? That sounds scary low. Keep in mind that the daycare is watching many children per person, defraying some cost, vs this person watching just your child. I would highly recommend looking at the thread the PP linked to. I think i'd be insulted with anything less than $10 an hour. I think nannys deserve so much more than they get, but understand that isn't affordable to almost anyone! When I look at my job and how much I get paid, and know what they do is so much more work and get paid so much less, it makes me feel badly!
pay varies from region to region, but that seems on the low side. nannies get paid $12-$15/hour here in brooklyn on average for watching one child, 8 hours a day.
We pay our nanny $1500/month, so about $375/week, and we feel like we got a really great price. Most nannies in our area started at $20/hour; ours averages about $10/hour.
Generally, you can expect to pay about double what you would for daycare, but some factors might reduce that cost. Would your relative do it at his/her house? Would you expect him/her to do chores around the house while the baby is sleeping? Do you expect your nanny to be certified (or to get certified) in CPR, first aid, etc...? Will he/she also be watching other children at the same time? Has your relative ever nannied before (is he/she a professional)?
I would come up with a budget of what you can spend, and then ask your relative what he/she would expect to be paid. Hopefully, you can come to a middle ground on price!
the difference in this case is that it's a relative that wants to watch the baby, not some random nanny. if this person is retired, she has a source of income and insurance, so those aren't considerations. was she offering childcare as a favor? what kind of relative is it? $300/week sounds very generous to me for a relative who isn't in need of a full income.
you need to talk to the person who offered and ask what her expectations are. she might not even accept money from you!
@kitzy: it's my grandmother's sister, and she asked my grandmother if we would want her to come to the house to watch the baby during the week. She's retired, has benefits, gets social security,has another source of income, not to mention her children send her money all the time, and asked that we pay her under the table. I think she's bored during the day. lol.
EDT: my grandma kept saying "pin money". I should have probably mentioned that in my first post.
I agree with Kitzy. This is different then a random nanny looking for a source of income and insurance/benefits. If you came up wtih something you'd be comfortable with you could discuss it with her and see what she says.
Yeah, I think the relative factor makes a huge difference here. Like, if I lived near my mom or grandmother, I would kind of just assume that they'd watch the baby for free for me (at least fairly regularly, if not a full 40 hours/week). When I was a baby, one of my grandmothers watched me 4 days a week, and the other grandmother had me 2 other days since my parents worked a lot and were also taking classes.
Since it's not as direct a connection (i.e. not the grandmother- or great-grandmother-to-be), I think it makes sense to offer compensation, but I agree that the standards are totally different than if you were to seek out a professional nanny for the job.
If you trust her with your daughter (!) (it seems so much more real once you know the sex, doesn't it?) and think you'll jive with her in terms of some basic childcare philosophy, it sounds like a potentially great solution- I just might take extra care in the beginning to make sure that everyone has the same expectations going into this since care arrangements with relatives are usually so much more informal.
I still think you should talk to the relative directly. Our original nanny was an older woman (friend of a friend/co-worker's wife). She is a housewife and her husband makes about double what my husband and I make combined, so we thought we were getting a great deal. When it finally came down to working out the details (hours, pay, taxes, etc...) we found out she had done some homework on prices in our area, and she wanted at least $20/hour. We were really surprised, and ended up having to make other arrangements a month before I went back to work. Luckily, we found another nanny in our price range, but you just never know what someone else expects until you talk to them directly.
I appreciate everyone's comments. I should have given the entire story and maybe not put the word nanny in the title.I thought it was a little clearer in the first post-sorry guys. There is no way we could afford a "real" nanny. The ones we've looked into are like $500-$700 a month at least. And I have a nice relationship with my great aunt. SHe is BFF's with my granny who I am very close to.
@Mrs. Spring: Oh yes. I do plan on talking to her. I just didn't want to insult her, which I'm still not 100% sure I'm not going to do. lol.
I'd just talk to her but I'd assume that if she's offering that she'd be happy with $300. The only issue you could run into is she may have some days when she's not available since it's not like it's a full time job for her. I think if she's looking for something to do with her time and make a little extra money offering childcare is a good option for her.
@flamingred: You might start out by asking her what she thinks would be appropriate for compensation. That gives you a better sense of her take on the situation and her needs.
I agree with @Mrs.DG. I would start things off by asking her what she was anticipating as far as compensation. Hopefully it's within your range, but if it's not then explain that you've done the research and were expecting to pay X amount per week so that's what you would be willing to offer her.
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We have a relative who may be interested in watching our soon to be born daughter while DH and I go to work during the day. The daycare we are on the waiting list for is $378 a week for infants, so I was thinking of paying her between $250-$300 a week if she decides she would like the extra money. Does this sound reasonable?