Volume 8 Issue 7 Custom Newsletters Available NOVEMBER 2008 www.BestNannyNewsletter.com PO Box 43477 Upper Montclair NJ 07043 USA ● 973-259-1101 The Economy and You How the economy has affected the nanny industry. By Stephanie Felzenberg, Nanny and Editor of Best Nanny Newsletter In This Issue 4 Monthly Poll. 8 11 12+ INA Lobby to Increase federal Child and Dependent Care Tax Credit The Unexpected Lay-Off. Ads A na, a nanny that works and lives just outside of Manhattan called Best Nanny Newsletter crying during the first week of October, 2008. Ana told me that her boss came home early during the week from his job on Wall Street and announced he had been fired, and that her boss could no longer afford to employ her. I acknowledge working as a nanny for two parents that work on Wall Street is unsettling for me. If the economic recession has a trickle-down effect it will inevitably affect nannies. Nannies may lose jobs, but there may also be an increase in jobs as two parent families send both parents to work to bring in two incomes. To share proper advice with Ana I asked a few nanny agency owners and nanny industry professionals if (Continued on p. 2) Suze Orman Talks Kids and Money Now is the time to teach kids about money. F inancial expert and television show host Suze Orman says now is best time to start teaching your children about money. Suze appeared on the Oprah show and discussed how to teach children about money. Suze explained that after years of saying “yes” to children about anything they wanted, the stock market plummeted and some parents lost their jobs. This is why Suze says when parents say “yes” and “no” to their children it should never depend on the economy. "It should be dependent upon: 'What kind of values do you want to raise your children with? Do you always want them to think they're entitled? Or do you want them to understand the value of a buck?'" she says. Once the son or daughter understands basic math principles, Suze says it's time to start the conversation. "You have got to start talking about money.” she says. "There's nothing wrong with talking about money. I happen to love it, and I happen to love talking about it." (Continued on p. 9) References 1. Andrea Flagg, Nanny Alliance of New York and NJ www. nannyalliancenyandnj.com. 2. Lora Brawley, Brawley & Associates, Federal Way, WA ww.AllAboutNannyCare.com 3. Pat Cascio, Director, Morningside Nannies, Houston, TX www.morningsidenannies.com 4. Michelle Damas, CEO of Neverland Nannies & Domestics, Woodland Hills, CA www.never landnannies.com 5. Betty Davis, Owner, In Search of Nanny Inc., Beverly, MA www.insearchofnanny.com 6. Susan Feigon and Gail Hamilton, Feigon Hamilton Partnership, www.feigonhamilton.com 7. Jessica Gillan, President and CEO, A Nanny Solution, Inc., San Jose, CA www.anannysolution.com 8. Glenn S. Greenhouse, Owner, Greenhouse Agency, Ltd., New York, NY www.greenhouse staffing.com 9. Harpo Productions, Inc., 110 N. Carpenter St. Chicago, IL 60607 10. Claudia Kahn, Owner,The Help Company, Santa Monica, CA, www.thehelpcompany.com 11. Merrilan Kougias, CEO, Choose The Right Nanny, LLC, McKinney, TX www.ctrnanny.com 12. Erin Krex, Owner, First Class Care, Inc., IL www.firstclasscare. com 13. Rachel Lawrence, Owner, Wilmington Nanny Agency LLC., Wilmington, NC www.wilming tonnanny.com 14. Anne Merchant, Teacher’s College for Professional Development www.childcaredegree.org 15. Judi Merlin, President, A Friend of the Family Home Services, Inc., GA www. afriend.com 16. Suze Orman Media, Inc., www.suzeorman.com 17. Shannon Pitts, CEO, InteliMark Enterprises www.GreatAuPair.com 18. Steve Lampert CEO, eNannySource.com, West Hills, CA 19. Hilary Lockhart, CEO, A+ Nannies, Inc., Scottsdale, AZ www.aplusnanniesinc.com 20. Mary O’Connor, Owner, Nannies from the Heartland, Minneapolis, MN www. nanniesheartland.com 21. Jo Anne Reed, Owner, Estate Domestics, Atlanta, GA www.estatedomestics.com 22. Katherine Leary Robinson, President, Beacon Hill Nannies, Inc., Newton, MA www.beacon hillnannies.com 23. Wendy Sachs, President, The Philadelphia Nanny Network, Inc., Ardmore, PA www.nannyagency.com 24. Starla Smith, HouseholdStaffing.com Bala Cynwyd, PA 25. Ginger Mylander Swift, President, ABC Nannies & Domestics, Inc., Denver, CO www.abcnannies.com 26. Susan Tokayer, President, Family Helpers, Inc., Dobbs Ferry, NY www.familyhelpers.net 27. Alicia Torchia, President, Careful Care Givers LLC Skillman, NJ www.careful caregivers.com 28. Sharon Toutant, Owner, A Better Nanny, Town and Country Domestics Sierra Madre, CA www.tandcr.com 29. Elizabeth Walsh, Owner, NannyQuest, Inc., Atlanta, GA www.nannyquest.net The Economy and You How the economy has affected the nanny industry. By Stephanie Felzenberg, Nanny and Editor of Best Nanny Newsletter (Continued from p. 1) the economic recession is affecting their businesses and their advice for nannies (like Ana) during this economic recession. Katherine Leary Robinson, President of Beacon Hill Nannies, Inc. in Newton, Massachusetts says, “I recommend nannies back down their salary expectations 10-12%, if they are not seeing families actively pursuing them. Live-in nannies are very fortunate in this horrible economic environment. As their only expenses are clothing and entertainment, they have not experienced the increase costs of rent, heating, food or gas. Please don't forget the amount of money you save as a live-in nanny, here on the east coast. Live-in nannies are enjoying on average an additional $25,000 a year in tax free benefits with free room, board, an insured car, and health insurance. You would have to be earning an additional $33,000 year gross to net that $25,000 for those live out expenses.” Susan Tokayer, Owner and President of Family Helpers, Inc. in Dobbs Ferry, New York explains, “We have been slower both with our temporary service and long-term service for the past six-weeks, since the banking crisis hit. I would say we are doing about 30% less business than we were doing one-year ago. Most families are being cautious right now, so there isn't as much activity as normal. Everyone (nannies included) should have some money set aside for emergencies. If you were to suddenly be unemployed because your employer lost his/her job, you should have some money available to live on until you secure another position. Ideally, you want to have the equivalent of six-months of living expenses in savings. If you don't have that Be the Best Nanny P. 2 amount, now is a good time to put some money aside for a rainy day. Finding a new job may take longer than usual in this economic environment.” Glenn S. Greenhouse, Owner of Greenhouse Agency, Ltd. in New York adds, “We have noticed a very slight decline which I believe is due to the current financial crisis we are all facing. However it is minimal. My advice to nannies would be to stay where you are if your job is secure. If your boss's job is secure, don't look for greener pastures. If you are seeking a job, don't sell yourself short, but weigh job security as much as job compensation. It is a better decision taking a few dollars less with a family who will have their money tomorrow, than risk a job paying big bucks with a family who just made their money or who are working in a risky industry.” Rachel Lawrence, Owner of Wilmington Nanny Agency LLC in North Carolina shares, “Things have slowed down some. Although you may be worth every penny, now might not be a good time to play hard ball about salary. Talk to parents and try to set up a plan for starting at a lower salary and then having a 90-day raise and a raise in one-year to get closer to the salary you were originally looking for. Once the family sees how wonderful you are, raises will be a lot easier to give than a high salary off the bat.” Shannon Pitts, CEO of InteliMark Enterprises and www.Great AuPair.com explains, “Some families are holding back on full-time care, seeking ways to reduce their childcare costs. We have more candidates seeking fewer available jobs now than this time last year. (Continued on p. 3) (Continued from p. 2) Nannies seeking employment may find they are competing for fewer available positions and as such should consider the quality of their application. It would also be worthwhile to learn how to sell the skills they have to potential employers and enhance their interview skills. Another option for nannies would be to consider organizing a nanny share between two families. This will help ensure the nannies procure full-time hours while assisting families with the cost of childcare. Families will be looking for nannies that have the organizational and time management skills needed to make a nanny share a workable option for both families.” Alicia Torchia, President and Placement Consultant of Careful Care Givers LLC which serves the New Jersey and New York tri state area writes, “I have seen a 5% decline in the volume of business we have brought in over this past year, these are families who are hiring us seeking nanny care services. I have seen an increase in families hiring us for infant care specialists. I have seen an increase in repeat business over all. I have seen an increase in professional nurses, teachers, and college graduates and even corporate persons entering the nanny field because they lost jobs in their field. I tell all the nannies in my network to try and not change a job in this economy because you never know when you are going to find another job that suits your needs.” Sharon Toutant, Owner of A Better Nanny, Town and Country Domestics in Sierra Madre, California tells us, “We are seeing fewer families offering full-time positions. They often are using family for part of their caregiver needs and hiring part-time nannies. Many families are seeking our help in finding their nannies some other part-time work so they won't lose someone valuable to their lives. My best suggestion to nannies is to be extremely prepared and have your best information ready for that first interview. Present a well done concise resume, written references with phone numbers or other contact information for those references, a current DMV report and any criminal background check that you can present. Also present for examination any school transcripts, CPR and First Aid certification. Be the nanny who brings the best package to the table so the family will remember you as the best prepared.” Lora Brawley owner of Brawley & Associates in Federal Way, Washington adds, “I’ve seen a decline in the number of families purchasing consulting services. However, I still get about the same number of families looking to hire a nanny. I recommend nannies: 1. Be prepared to jump into a job search. Don’t wait until the unthinkable happens before you start polishing your job search skills and developing your portfolio. 2. Be prepared to have the “why are we paying you this much?” conversation. Every nanny should be able to clearly define the value they bring to a family. 3. Stay calm. Anxiety is contagious. It’s your responsibility as a professional to create and maintain a secure care giving environment. Plus it will make you feel better too! Judi Merlin, President of A Friend of the Family Home Services, Inc. in Georgia answers, “Yes, our business is down, both short and long-term. We are recruiting for only specific areas and specific jobs, as we have enough caregivers to fill almost all the jobs we have.” (Continued on p. 6) About Us EXECUTIVE EDITOR: Stephanie Felzenberg has been a professional nanny since 1993 and editor of this publication since 2001. After earning a Bachelor Degree in Psychology, she worked with mentally handicapped children and neglected and abused teen-aged girls. She volunteered as the International Nanny Association newsletter editor for more than four years. She has written for many nanny newsletters and web sites and a nanny textbook. RESEARCH EDITOR AND MONTHLY POLL: Andrea Flagg has been a nanny since 1999 and is the co-founder of Nanny Alliance of New York and New Jersey, visit: nannyalliance nyandnj.com. She also moderates a Yahoo Group for the nanny support group. She edits our monthly poll and researches content. Copyright © 2008. The material included in this publication contains general information, is not intended to provide legal, financial, and medical advice and should not be relied on to govern action in particular circumstances. We are not responsible for the attitudes, beliefs, or opinions of those interviewed and the advertisements printed within this publication. We are NOT a nanny referral business. Be the Best Nanny Monthly Guide PO Box 43477 Upper Montclair, NJ 07043 USA Phone: 973-259-1101 Web Site: www.BestNanny Newsletter.com Email: stephanie@ BestNannyNews letter.com How are Part-Time Nannies Compensated? Monthly Poll Results L ori Harvey, a nanny with 25-years professional nanny experience from Austin, Texas contacted Best Nanny Newsletter to help determine the level of benefits and compensation that higher level professional nannies are receiving for long-term, part-time commitments. One-thousand one-hundred and twenty-seven (1,127) in-home childcare providers responded to this monthly online poll at: www.bestnannynewsletter.com. Forty-nine percent of the caregivers are part-time nannies, 34% are full-time nannies, 8% are sitters, and 8% were nanny industry business owners that answered the poll. 1. How do you define part-time? Is it the amount of hours worked or the number of days worked per week? In this survey, 45% of poll participants answered that part-time is defined by the number of hours worked per week; 45% answered part-time is determined by days worked per week; and 9% said it is a combination of both hours and days worked per week. 2. Should a part-time nanny be paid hourly or salary? Of those that participated in this survey, 49% answered that part-time nannies should be paid hourly; 30% answered payment depends on the situation and what the nanny wants; 15% said part-time nannies should be salaried employees; and 6% are not sure. 3. Should a part-time nanny get paid as much per hour as a full-time nanny? Sixty-one percent of nannies answered yes; 22% answered possibly more; 2% said no; and the rest skipped the question. 4. What benefits should all nannies have, regardless of part-time or full-time status? The results are as follows: gas reimbursement 57%; extra compensation for extra work such as taking care of friend’s or neighbor’s children 55%; paying taxes 50%; paid national holidays 48%; paid sick days 47%; and paid vacation days 47%. Other benefits listed were maternity leave and metro card in New York City (transportation). 5. Should part-time nannies receive medical benefits? The answers were: 41% were not sure; 34% answered yes; and 25% of poll participants said no. 6. If you were (are) a part-time nanny would you be willing to earn less money in exchange for medical benefits or other benefits? Of the poll participants 42% answered no; 29% said yes; 25% said they are not sure; and 4% said other. 7. What benefit do you think is most important for parttime nannies? The answers were: paid time-off 50%; health insurance 34%; although taxes aren’t a benefit, it is against the law not to pay taxes 14% answered paying taxes; and 2% answered other. 8. Do you think that other part-time jobs (not nanny jobs) offer better part-time benefits than part-time nanny positions? Participants of this survey answered: 38% yes; 33% not sure; and 26% answered no. 9. Do you have any advice for nannies that work part-time Be the Best Nanny P. 4 about salary negotiations or work agreements? Jennifer Carney, a part-time nanny in Worthington, Ohio explains, “I have always treated my part-time nanny job with the same importance as a full-time nanny position. I have a contract spelling out the days worked, salary, tax responsibilities, paid vacation and sick time, holidays, 60-day notice of termination by either party, how to compensate for hours above expected and days that the employer doesn't need you that you expected to work. This has always worked well for me and has kept a level of professionalism to the job.” Espie Flores, a certified nanny from Portland, Oregon says, “First determine what are the benefits you want or need, than be ready to compromise on others. Don't settle for less than what you feel you're entitled to based on experience and skill level.” An anonymous nanny from Texas writes, “Insist on part-time benefits if you work at least 20-hours per week. Point out that that only temporary employees work for no benefits at all and nannies are usually wanted to stay for a couple of years which is not temporary.” Betty Davis of In Search of Nannies Inc., in Beverly Massachusetts explains, “We have placed caregivers in two part-time jobs. Salaries for part-time positions do not seem to have been as affected as salaries for fulltime caregivers. When our agency places one caregiver in two part-time positions our agency will always negotiate full benefits for the caregiver between two families.” Amber Snow, a nanny from Austin, Texas recommends, “Treat part-time nanny jobs like you would any other job or full-time position. If this is going to be a permanent position (one-year or more), I would strongly recommend insisting on paid vacation and sick days.” Erin Krex of First Class Care, Inc. in Illinois says, “Make sure you are guaranteed a minimum number of hours and anything over that should be paid additional, gas reimbursement for sure.” Amy Edwards, a nanny coordinator in Lake Oswego, Oregon suggests, “Get everything in writing before you start working as a nanny. Don’t allow parents to think part-time means less structure in pay, hours, and benefits.” Luane Sugerman, a nanny from Portland, Oregon says, “I feel nannies need to educate the public that we are put in charge of their children and it is a very demanding and enriching responsibility and one that is taken very seriously. We should be paid accordingly.” Karna Haro, a nanny in Boston, Massachusetts recommends, “Always use an agency. They should be more than willing to help you work things out with a possible employer. If the agency is unwilling to help you then find another agency or ask a friend or family member who has worked as a childcare provider for some insight.” Ruth Britton, a nanny from Portland, Oregon says, “Make sure you and the family have come to a fair agreement and both party's stick to it.” (Continued on p. 5) (Continued from p. 4) Molly Pepper, a nanny from Lexington, Kentucky explains, “Discuss with your potential employers the fact that you may need to take an additional job to make the most of your time. They may be willing to pay you more and/or give you more hours in an effort to keep scheduling simple.” Meg Tully, a nanny in Fogelsville, Pennsylvania says, “Paying taxes is not a benefit — it’s the law. I think nannies need to stand up for themselves. If you don’t ask, you won’t receive.” Emily White, a nanny from Weston, Florida says, “Make sure you state what you want, and sign a work agreement. Don’t let benefits be overlooked just because you are working part-time.” Talla Mitchell, a part-time nanny in San Diego, California says, “Know what the average pay is in your local area. Figure out what your education and experience is actually worth in the area you work in. Nannies with ten years of experience should not be making merely $10.00 per hour.” Below our readers answered how much they make per hour at their part-time nanny jobs. We did not factor in how years of experience or education effects their salary. If you are a part-time nanny: Where do you work? How much do you make per hour? # of nannies Where do you work? How much do you make per hour? Louisiana none Maine $8.50 to $18 Maryland # 0 Average: $14 3 $15 to $23 Average: $18.50 22 Massachusetts $17 to $20 Average: $18.50 35 Michigan $10 to $15 Average: $13.50 16 Minnesota $16 to $18 Average: $16.50 10 Mississippi none Missouri $10 to $18 Average: $14 2 Montana $10.50 to $14 Average: $12 3 Nebraska $8 to $12 Average: $10 5 Nevada $8 to $18 Average: $12 13 New Hampshire $13 to $24 Average: $18 14 New Jersey $17 to $25 Average: $20 30 New Mexico none New York $13 to $25 Average: $19 53 North Carolina $12 to $18 Average: $15 10 North Dakota $10 to $18 Average: $15 12 Ohio $15 to $23 Average: $19 10 Oklahoma none Oregon $10 to $25 Average: $14 39 Pennsylvania $13 to $25 Average: $20 30 Rhode Island $13 to $20 Average: $15 15 South Carolina $10 to $20 Average: $15 2 0 0 Alabama $10 to $13 Average: $11.50 2 Alaska $14 to $20 Average: $16.60 3 Arizona $12 to $19 Average: $15.60 43 Arkansas $12 to $15 Average: $13 3 California $10 to $25 Average: $18 64 Colorado $12 to $17 Average: $14.50 26 Connecticut $20 to $28 Average: $24 20 Delaware $13 to $18 Average: $16 8 District Columbia $15 to $23 Average: $18 28 South Dakota $12 to $16 Average: $13 5 Florida $5 to $15 Average: $11.75 31 Tennessee $9 to $14 Average: $10 11 Georgia $12 to $20 Average: $15.60 28 Texas $14 to $18 Average: $15.75 40 Hawaii $18 to $23 Average: $20 8 Utah $10 to $14 Average: $12.50 4 Idaho None Vermont $15 to $23 Average: $16 10 Illinois $13 to $20 Average: $16.50 10 Virginia $14 to $23 Average: $18 8 Indiana $12 to $18 Average: $15 8 Washington $14 to $18 Average: $16 20 Iowa $6.50 to $12 Average: $10 8 West Virginia $12 to $23 Average: $19 6 Kansas $10 to $15 Average: $12.25 4 Wisconsin $10.50 to $24 Average: $15 8 Kentucky $10 to $15 Average: $12.50 16 Wyoming $14 to $23 Average: $16 13 0 0 Be the Best Nanny P. 5 The Economy and You How the economy has affected the nanny industry. By Stephanie Felzenberg, Nanny and Editor of Best Nanny Newsletter (Continued from p. 3) Pat Cascio, Founder and Director of Morningside Nannies in Houston, Texas explains, “Long-term placements are down. Temporary is down a bit. We have had fewer inquiries, fewer new clients, and fewer hires. Nannies that are used to earning at the higher end of the salary range, may need to be a bit flexible about the salaries they are requesting. Families that are involved in investments and banking are not earning they type of commissions that they are used to and thus money isn't flowing as easily as it once may have. Other families may be watching their investments dwindle in the market and aren't feeling very certain about their financial futures. When offered employment, nannies should consider themselves lucky to be getting a job offer and hope that when the financial situation turns around that their employer will be able to increase their salary. There have been a few stories recently about nannies not being able to find jobs in cities as large as New York. The London newspapers are reporting the same thing -- when families cut back on expenses the nanny may be the first to go.” Merrilan Kougias, CEO, Choose The Right Nanny, LLC in McKinney, Texas discloses, “We have seen a decrease in our live-in placements in markets such as New York. Clients (on the East Coast) are not rushing to fill vacancies and seem to be taking a ‘wait and see’ approach. If a nanny decides she must make a career change, she should try to be patient and flexible. A high end nanny may need to reduce her salary requirement or work smarter by using an agency to promote her job skills and salary requirements. Insist on a work agreement or contract between the employer and the nanny.” Michelle Damas, CEO of Neverland Nannies & Domestics in Woodland Hills, California says, “Unfortunately, we have noticed a slight decline in business due to the economic recession. However, there are certainly still jobs available by those who the recession does not affect. The recession doesn't affect the majority of our type of clientele, but first time home buyers and (unfortunately) lower income households have to cut Be the Best Nanny P. 6 corners. On the brighter side, many families who still have secured employment still demand quality childcare for their children, offering continued career opportunities for professional nannies and child workers. If any nannies are experiencing difficulties securing nanny positions, I would encourage them to take the following steps in order to increase their odds of finding a great opportunity and beating their competition: 1. Put together a quality nanny resume. Hint: List your qualifications in the beginning so they stand out from others. Try to only incorporate your childcare related positions, rather than non-relevant work experience. Families want to know what type of childcare experience you have more so than anything else. 2. Do not put all your eggs in one basket! I encourage all nannies to take the time to scope out the quality agencies in their area and interview with each and every one of them (don't sign on to an agency exclusively). Without harassing the agencies, provide each with a weekly phone call/email letting them know that you are still in the market for a nanny position. 3. Remain competitive by keeping your salary requirements reasonable. Figure out what the going rate is in your area and then adjust accordingly. Be flexible, and professional. 4. If you can, be flexible with your schedule (and note it on your resume). If you are open to travel, overnight stays, and weekend, note that on your resume. 5. Try to go on the majority of interviews each agency offers you. Be on time to every interview and dress professionally. Bring a copy of your resume, your references (depending on the agencies policies), any letters of recommendation you may have, copies of your First Aid/CPR certifications, Trustline clearance and any other documents you may have that show your qualifications as a professional nanny. 6. Again, remain optimistic! All of that positive energy is bound to land you a great career opportunity. (Continued on p. 7) Steve Lampert CEO of eNannySource.com a national nanny web site writes, “It’s a fact that there will be more nannies searching for fewer jobs, that makes it extremely important that each nanny be very professional and have a well written resume, dress appropriately and have good letters of reference. Also, respond quickly to all emails and calls and arrive on time for interviews.” Jo Anne Reed, Owner of Estate Domestics, in Atlanta, Georgia suggests, “I would advise nannies to get seasonal jobs to subsidize their income while we get through this time.” Hilary Lockhart, CEO and Founder of A+ Nannies, Inc. in Scottsdale, Arizona shares, “Our temporary placements are down 42%, family registrations are down 47%, and permanent placements down 51%. I think everyone is seeing a hit. I think that nannies need to know that if they want the same pay they have been getting for the last two or three-years, they need to expect to be patient when looking for jobs. We have many families wanting to start about $1 less than what I was seeing two-years 1.Renew your CPR certification and include ago; they are all willing to give raises at sixa copy of the certificate in your nanny portfo- months. I think parents are just trying to save lio. money (like the rest of us). Of course there are 2. Get a letter of recommendation from your those clients that money is still no issue, but they current employer while you are currently are not all like that.” working or ask your employer to complete an Betty Davis of In Search of Nanny Inc. in evaluation for you that can be included in Beverly, Massachusetts discloses, “We will not your nanny portfolio. have as high an increase in total annual revenue as 3. Ask friends that are nannies if their emcompared to prior years. We will definitely meet ployer needs an occasional evening nanny last year’s total revenue levels but we might not and if so request a letter of recommendation. increase revenue, as we have in nearly every past 4. Take nanny classes like ours at Teacher’s year. College for Professional Development. In the metro Boston area, it is not just in5. Find a way to volunteer to help out at an home care that has been impacted. There are many after school program, nursery school, a Gym- long-term family daycare providers in our geoboree, the local bookstore or library by con- graphic area who have closed their businesses due ducting a "story hour," or daycare. Volunteer to lack of enrollment and have submitted applicafor an adult or children's literacy group, tions to the agency for professional positions. Day teaching English as a second language, or care centers have also let teachers go due to declintutoring at an elementary school. Tell them ing enrollment. up-front that you are building both your Salaries in the metro Boston area are skills and your resume and you would like perhaps the highest in the country and they have them to acknowledge your help by writing a increased dramatically over the past two to threeletter of reference.” years. (Continued on p. 10) (Continued from p. 6) Anne Merchant of Teacher’s College for Professional Development and author of The Nanny Textbook explains, “The economic recession has impacted us. We waived all of our fees because the number of nannies registering for classes dropped-off dramatically. Now, because we have no fees at all our student count is higher than it has been in six-years. I would advise nannies to not make the mistake of assuming that you will never be laid-off. With the rate of foreclosures and the tumbling down of formerly wellrespected banks and corporations (not to mention individuals and families that have lost a lot of money in the stock market) people are cutting back. To stay as marketable as possible, don't work just on your education - work on getting additional credentials that can be added to your resume, such as: Be the Best Nanny P. 7 Help INA Lobby for Change Increase in Federal Child and Dependent Care Tax Dear Nannies: The International Nanny Association, (INA), is working to protect your interests on issues of importance to the childcare industry. Part of this effort involves lobbying federal officials for changes in the law to support nannies and working families. Now we need your help. INA is beginning a lobbying campaign to contact all members of Congress and Senators to urge them to increase the federal Child and Dependent Care Tax Credit. This credit has been at the same low level for seven years and doesn't even come close to covering the cost of childcare. By raising this issue in this election year, we hope to bring this important subject to the front of legislators' minds and hopefully get some action on it in Congress. But we cannot do this without you. We urge you to contact your member of Congress, two senators, and John McCain and Barack Obama and let them know you would like an increase in the federal Child and Dependent Care Tax Credit. Below is a sample letter you can use as a guide for you to contact your legislators. If you have questions about this effort, please contact the INA Governmental Affairs Chairperson Bob King, Esq. of Legally Nanny at 714-336-8864 or info@legallynanny.com. Your grassroots lobbying is the most critical component of this campaign. We urge you to email, write, or call your member of Congress, two Senators, and John McCain and Barack Obama today. You can find and contact your member of congress at www.house.gov; you can find and contact your senators at www.senate.gov. Just one contact can make a difference if we all do so! Thank you, The INA Board of Directors SAMPLE LETTER [Date] Senator [Name] Address 1 Address 2 Re: Increase in Federal Child and Dependent Care Tax Credit Dear Senator [Name]: The federal Child and Dependent Care Tax Credit (CDCTC) helps working families provide care for young children and other dependents who cannot care for themselves. Unfortunately, this credit is not indexed for inflation and only provides a 20% to 35% credit for the first $3,000 in childcare for each eligible child. This amounts to a credit of only $600 to $1,050 for a family where both spouses have to work just to make ends meet. As a professional in the childcare industry, I urge you to consider increasing this credit. Specifically, I agree with the International Nanny Association's recommendation that the first $7,000 of expenses per child be eligible for this credit. Further, I support indexing the amount of expenses to inflation to ensure that the credit to working families is not eroded over time. The current CDCTC does not even come close to paying for a year of childcare. The average annual cost of childcare in the U.S. is $7,332 per child, and is significantly higher in many metropolitan areas. Thus, the credit which ranges from $600 to $1,050 covers only a fraction of the total costs parents must pay for this annually increasing expense. However, the CDCTC has remained at its present level for seven years, eroding its benefits as childcare costs increase. The CDCTC only applies to families where both parents are working, actively looking for work or attending school full-time. It is not a subsidy for stay-at-home parents, but rather this important credit assists those individuals who are working and need this vital childcare to allow them to work or attend school full-time. The CDCTC applies to families at all income levels, and it is the second largest source of federal childcare assistance. In sum, it is a broadly used and critically important benefit. As your constituent and a professional in the childcare industry, I hope you will support increasing the amount of eligible expenses for the CDCTC to $7,000 and indexing this amount for inflation. I look forward to hearing your response and receiving your support in the days ahead. Sincerely, [Signature] [Name] Be the Best Nanny P. 8 Suze Orman Talks About Kids and Money Now is the time to teach kids about money. (Continued from p. 1) Although parents determine allowance for their children, nannies can help implement the rules and the chores to gain an allowance. Suze explained, "You get an allowance simply because you live in a household? No! Money has to be earned," she says. “If it were up to me, I would disallow allowances. Or at least the version of allowances that are popular these days. When I ask young children why they get an allowance, they just shrug and tell me because their brother or sister does. Or because their parents give it to them. Folks, this is ridiculous. She continues, “That’s simply not what an allowance should be about. An allowance is your first opportunity to teach your children to respect money to teach them that money is something that must be earned.” “So, for starters,” Suze says, “I want you to ditch the word ‘allowance’ and change it to salary. Yep, you read that right. Why not teach your kids the concept of earning money from work?” Based on the federal minimum wage of $6.50 an hour, Suze calculates that each minute of work is worth roughly 10 cents. It will take about four hours of work to earn the $20. Suze says this is a good level to start a child's wages. "Now if they do that job efficiently, you can give them a pay raise. If they do not do that job efficiently, … I would actually decrease their salary, so that the kids understand good work equals good pay equals job promotion. Bad work equals getting fired," she says. "And when they learn that at 8, 9, 10, now what are we talking about? We have a kid that knows they have to work for something." “Just keep it simple when coming up with the chores. And try to make this a fun process; ask your son or daughter what jobs they think would be a great way to help out around the house. Folding laundry? Delivering the laundry to the right bedrooms? Setting the dinner table? You get the idea. This is not punishment. And keep the payout small for young children. A dollar or two a week is plenty for a young child.” What kinds of work can a 10-year-old do to earn her wages? Is cleaning up her room or making her bed enough? Yes, Suze says these are good tasks for a kid as long as it helps her parents. "You guys have to decide together what helps you really around the house," she says. When it comes to helping children become financially secure adults, Suze says there are five things every parent should know. 1. Start talking about money. "Open up the conversation," Suze says. "Kids do as you do. Not as you say. So for you, you now have to open up the conversation with your actual actions." 2. Teach kids to value money. It's hard for kids to grasp how much you're actually paying for items when you do so with a credit or debit card, Suze says. Kids need to see something more concrete. "Start paying for things in cash. That's what you really need to do," Suze says. 3. Don't reward your children with money. An A on the report card doesn't equal $50, Suze says. "Love them. Spend time with them," she says. "[They'll say:] 'I got an A. I get to go out with Mommy and Daddy. I get to spend time.' Teach your children the value of a personal relationship—not that everything comes down to money." 4. Be an example for your children. "Kids do as you do, not as you say. And don't think that they don't watch everything that you do," Suze says. "Don't tell them you can afford something when you can't. All kids want from you is honesty. All this world wants from you is honesty. And all you should want from yourself is honesty." 5. Teach your kids to prioritize. Sure, kids may want everything, but Suze advises to have them sit down and make a list of what they want the most. "If they still want it a month from then, let them come back to you, but prioritize. What is really important?" she says. "And Mom and Dad, help them prioritize—what do you need versus what you want? And out of all the things you want, what's the most important thing that you want?" Please remember that as nannies we can share this article and advice with the parents that employ us, but it is the parent’s decision how to implement an allowance and how to teach their children about money. Be the Best Nanny P. 9 The Economy and You How the economy has affected the nanny industry. By Stephanie Felzenberg, Nanny and Editor of Best Nanny Newsletter (Continued from p. 7) I think caregivers, as all of us, will have to ‘tighten the belt’ and perhaps consider positions at slightly lower salaries (still competitive) than perhaps they have had recently. The economy will come back and if a caregiver is doing a great job, I am sure as their employers are more secure in their professional positions, their caregiver’s work will be financially recognized. Most of the families that we assist have also seen their income decline – no raises, elimination of bonuses, and so on. Nannies might also consider working two part-time positions to earn their weekly salary. We have placed caregivers in two jobs – a two-day job and a three-day job. Salaries for part-time positions do not seem to have been as affected as salaries for full-time caregivers. When our agency places one caregiver in two part-time positions our agency will always negotiate full benefits for the caregiver between two families. If a caregiver already has one part-time position (which she found independently) and wants us to find another to ‘match’ it, the caregiver might not receive a full paid benefits package unless we are able to negotiate with the other family – which has happened only a few times.” Mary O’Connor, Owner of Nannies from the Heartland, in Minneapolis, Minnesota adds, “Right now we are at about the same place we were last year. We have noticed more families considering a part-time nanny over a full-time nanny. Our temporary placements have increased. However, in the last couple of weeks we have had a decrease in client inquires and new clients. Nannies should carefully consider switching jobs knowing that finding something could take much longer than it has in the past. Good jobs are available but it is taking longer to find the 'right fit.' Consider accepting temporary or short-term work while searching for permanent placements. Look at what might be negotiable because you may be making compromises in your pay range or benefits. It is in the nanny's best interest to make sure their resume is up-to-date, CPR and First Aid is current, and they have demonstrated professional continuing education -- these things get Be the Best Nanny P. 10 attention.” Erin Krex, Owner of First Class Care, Inc., in Illinois adds, “Families are not offering the same generous salaries as three-months ago. They are shopping around more for the best deal. Most of the nannies I see are asking for more money than they made at their last job, which is understandable, but I tell them if you can find a good family who needs you long-term then take the pay decrease and wait the year for a raise, otherwise they will go months without a job while waiting for the desired salary.” Some nanny placement agencies have seen no affect from the economic recession. For example, Starla Smith of HouseholdStaffing.com in Pennsylvania says, “Business is booming!” Ginger Mylander Swift, President of ABC Nannies & Domestics, Inc. in Denver, Colorado discloses that she is having, “another great year and once again we are on track to surpass last year's revenues. Nannies with experience and strong references will always be in demand.” Jessica Gillan, President and CEO of A Nanny Solution, Inc. in San Jose, California shares, “I have had my most profitable year. We have placed 53 full-time nannies this year alone, and the year isn’t over. I have had parents tell me that they recently sold stocks to be able to afford one of our high caliber nannies in addition to our placement fees. I have seen three agencies in the bay area go under within the last six-months. Believe it or not, this economy can be a blessing in disguise for the nanny industry. More mothers are going back to work and those families need nannies. If this truly is your career then you must take the good with the bad, the economy will make a return. In the meantime, stay off craigslist where the parents who are looking for a cheap deal are on there and as a result only want to offer below market wages. Parents use agencies because they want the whole package and they are aware of the placement fees and higher salaries. Parents want a polished and a committed professional (Continued on p. 11) nanny.” employment. I also assume that parents will try to do Wendy Sachs, President of The Philadelthe job that a good agency will do in vetting the right phia Nanny Network, Inc. explains, “We have not person to help with their childcare. There is always a noticed a decline in our business in any way due to need for nannies here in Los Angeles as there are the economic recession. We have seen families thousands of families with dual income parents that deciding to opt out of using our service telling us it's need childcare. I am not only telling the nannies, but because of the economy but other job seekers as well as we are still getting new personal and executive asTHE UNEXPECTED LAY-OFF clients in to replace that sistants, and chefs to possiBy Andrea Flagg attrition. 1. Severance: Have an agreed upon severance plan bly lower the expectations written into your work agreement. With more people of their salaries, and to be 2. Unemployment benefits: One of the benefits getting laid-off, the pool more flexible in what they of paying taxes is getting unemployment reimbursewill become flooded with are looking for in a position. ment. people looking for work, Everyone needs to lower 3. Evaluations: Have your employers complete a reassess moving out of job their prices including agenwritten nanny evaluation every three to six-months to at this time, may be wiser to include with your nanny portfolio. cies, as this is a time when 4. Resume: Update your resume every few months. everyone is worried about hold onto the job they are 5. References: Ask former employers, parents, currently in.” their bottom line.” teachers, or neighbors to write letters of reference. Elizabeth Walsh, Susan Feigon & Gail 6. Nanny Portfolio: You have time to work on it Owner of NannyQuest, Hamilton of Feigon Hamilnow. Inc. in Atlanta, Georgia ton Partnership recom7. Make finding a job a full-time job: Make explains, “Our clientele your job search your number one priority. mend, “Keep a positive seem to be above the finan8. Contact local nanny agencies: The best way attitude and keep the job cial storm. I suggest nannies to find a great nanny placement agency is by asking you already have for now.” other nannies and families which agencies they used. open up the parameters of The good news: 9. Nanny web sites: Sign up with nanny employyour job search. Be willing Ana, the nanny that called ment web sites via the Internet. to do a bit more than just Best Nanny Newsletter 10. CPR and First Aid: Get CPR and First Aid childcare. Sell yourself by certified. crying she had lost her job 11. Education: Use your down time to take a child emphasizing your skills at the first week of October related course or research current childcare issues. home management, light has found a job before print12. Network: Tell anyone who will listen that you housework, meal preparaing this issue. She has just are searching for a new nanny position. tion, tutoring, swimming signed a contract making 13. Have a back-up plan: Is there another lessons, and so on. When $65,000 per year as a nanny profession you can fall back on while you search for a parents realize that they can great nanny job? in Hoboken, New Jersey. 14. Savings: Have a special savings account stashed For Ana, her former boss be more effective at making away that you can dip into if needed. money because of what you losing his job became her 15. Temporary jobs: Work temporary and parttake off their proverbial blessing in disguise. time jobs until you find a great full-time position. plate, they are more willing 16. Focus and target: Keep in mind that your next to pay top dollar.” Thank you also to employer won’t only choose you, you choose them. Claudia Kahn, Sacha Taylor of Nannies Owner of The Help and More in Atlanta, Georgia; Susan Buczak of Company, in Santa Monica, California writes, “We Christian Nanny in Knoxville, Tennessee; and have not yet seen a decline in our business, but we Shari Kendall-O'Neill, Owner of Amazing Placeare expecting it. We have had calls from many good ments, LLC for their contributions to this article. nannies that have lost their job and are seeking new (Continued from p. 10) Be the Best Nanny P. 11 PROTECT YOUR NANNY™ eNannySource.com Finding a nanny has never been easier! Eisenberg Associates offers insurance to nannies. Health, Life, Disability, Dental and Retirement Plans. 800-777-5765 www.eisenbergassociates.com Info@eisenbergassociates.com Safety Belt USA www.steckman-studio.org/ 829 South Oak Park Avenue Oak Park, IL 60304 708-524-1954 The Steckman Studio of Music is a 501(c)(3) not-for-profit agency making a difference as partners in music education. 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