Need help figuring something out!

[Momto2Boyz]

Ok, I have started babysitting for my next door neighbor. Their daughter is 2 months old, and cute as a button. Since I am home already and don't really need to be making any cash, we agreed to a "barter system" for babysitting.

But we haven't worked out the details yet and I think I need some help figuring it out. They are our closest friends and like family to us, so I want to make sure we get something worked out that we both agree on, just so we don't end up with any problems later...though, I don't anticipate any.

So here is the situation ~
My DH is handy when it comes to automotive stuff, but not household stuff. He doesn't do plumbing, drywall, electric, etc. He just doesn't know enough about it, so certain projects in our house have gone by the wayside.

So, my neighbor, is SUPER handy in all that stuff. So we worked out a deal, so that he is going to do my "handyman" projects for me, in exchange for babysitting. But I do think we need to assign some dollar amounts to things, just to make sure that no one is getting cheated, KWIM? I don't want him to work his butt off for me, and I don't want him doing to little to make it fair.

So here is what I am thinking. I need to come up with a cash amount for sitting each week. I am thinking between $75 - $100 per week. For a daycare center for an infant here, it is $170 per week. So I figured my number was pretty fair (I am taking into account too, that they will lose the tax deduction from not having her in a center). Does that sounds ok? I'm just not sure. I'm watching another little boy for a neighbor the week before school starts, and she is paying me $2 an hour...so it would work out the same for both families.

Anyhoo, then I was thinking on the other side, he is purchasing supplies for the jobs and then I think he needs to assign a fair dollar amount for labor. Enough to make it worthwhile for him, but let's say, lots less than I would pay an actually plumber, electrician, etc. I will let him assign that dollar amount and see what we can agree on.

Then, I was thinking we'd just keep a running tally of what I am making and what I am spending, so to speak, to pay him for the time and supplies he is buying.

Does it sound like this system will work or will it just be way to complicated?

[leezza]

I think you are selling yourself short......if it is just to keep things even then I think you should figure what they would pay a non-friend child care. You are being responsible for a baby.....5 days a week 8-10 hours a day......

And he will do your projects whenever it is convenient for him.

Just bringing up to not make less of what you are doing.

JMHO,
leezza

[meanestmom]

I think you should charge what you would charge someone else, and he should charge you what he would charge someone else. You are still getting a deal to get all that work done!! Just keep a tally, and make sure it is clear that he is buying the supplies, not you.

[FrugalMomof3]

I agree to charge what you would charge others, remember this is a baby that needs ALOT more care than a toddler.

I would then tell him to charge what he would charge others and keep a tally.

[foxxyroxie]

This is my opinion.....

If you want to only charge $75 to $100 a week, that's really cheap for daycare, and then you will have to make sure that all supplies (formula, food, juice, bottled water, wipes, diapers, etc.) are being furnished by them.

If I were the parents, it would be worth equal hours in exchange for the security of knowing personally the person is taking care of my child while I'm at work -- but that's me. But if we're talking dollar-wise figures, it would figure about 1 day of babysitting (8 hours @ $3/hr) for every hour handyman labor ($25/hr). I would try to negotiate that though... maybe 3 or 4 hours babysitting for 1 hour labor.

As far as supplies for handyman work, you should have him submit the receipts for it and reimburse him for it or buy the supplies yourself in advance.

[frugalandsimple]

I got lost reading your post. I'm not the brightest bulb around FV. Whatever happens, good luck and have fun watching after the baby.

[CristiK]

I would be concerned about this plan. What if your projects are always on the to-do list but don't seem to get done? Who do you complain to? What if you just don't have any projects that need to be done that equals what you are "making" with the babysitting? What if he doesn't do a very good job on something? I see alot of potential for problems here. Your friendship could end up tested or failing. I think they should pay you actual money and then you should hire him and pay him back actual money. That way, if he never fits your projects into his schedule, there does not have to be hard feelings. Losing friends is bad but if they live next door.....that is going to be beyond awkward.

[baxjul]

For my daycare, I charge $125/week for a 2 yr old, full time.

[baxjul]

Oops, 2 months, just saw that. It would be $150/week, they need to supply everything.

[stinkbug]

Personally, I think this has disaster and hurt feelings written all over it....

[Kaos Kitty]

My sister and I tried bartering services. I babysat her 2 kids in exchange for a ride to work. At first my sister would lose track/deny the hours I babysat and she would renege on the rides. If she hadn't been family, our relationship would have ended right there!

Then we came up with a coupon system. We had 10 coupons in total that we both signed (so no fakes could be made). Then I received a coupon for each hour of babysitting. I could then use a coupon for a ride to work. It made things easy and clear. She couldn't deny that I had done the work because I had a coupon in hand!

In your case, I agree with other posters that for the sake of clarity it might be best to only barter labor. That way you are not always having re-discuss the money issue and straighten "accounts". I've been in this situation also with a good friend, and it's easy for miss-communication and disgruntlement to creep in. Feeling that instead of saving money, that you are being "nickeld and dimed" to death. It's clearest if they pay for baby supplies upfront every month and you pay the building cost receipts.

Then a dollar value can be placed on your labor, for example $25/day ($3hr/8hrs) and $25/hr for his labor. (I know $3x 8 is $24 but its for simplicity sake). That would make it easy for coupons to be made/exchanged. We started out with 5 coupons each. You could make more, say 20 (a months worth of babysitting/ 20hrs of labor) and divide the coupons equally between you and your friends to start. That way when they run out of coupons to pay you, they have to start earning them back by getting to work on your projects. It keeps a clear time line for the bartering, so you're not babysitting for 6 months and haven't had any projects completed.

Oh, and if I babysat 20 minutes extra, I did so for free. But 25 minutes or more of work is rounded up to the hour for a full coupon. I suggested $3/hr because a baby is recognized as more work and your friends are still:

1)Saving money from paying a daycare $125/wk vs $170.

2)Saving 30% or more depending on their tax bracket by paying with a non-taxed service instead of cash. So don't worry about adjusting your rate to compensate for the day care tax deduction. At a $125/wk you are saving them an extra $37.50/wk (at 30% tax rate) in taxes. To pay for the $170/wk daycare they would have to earn $221/week ($51 for taxes).

3)Guaranteeing him work in a tight labor market. You are promising that he can earn $25/hr to pay for their needed babysitting.

Paying fair market value for your services, his AND yours keeps things fair. It also prevents feelings of being taken advantage of down the road.

Unfortunately it is human nature for people to "forget" that you're giving them a discount and the value of your work. Even with close friends and family! Especially for women, we generally try to compromise too much to be "nice", and then under value our services. Just because you are a loving caregiver, and caring for their cute little girl is easy for you, doesn't mean your time/service isn't worth fair money. It's not about needing the money. It's about saying, I am offering something of value and deserve to be recognized for it.

Just think, dry walling is easy for your friend, but you would still expect to pay him fairly? Right?

Anyway, Good luck! Hope this helps - I didn't realize I felt so passionate about this subject -LOL! Bartering is a great way to save money as long as both people feel its an equal/fair exchange.

[Dancing Lotus]

This doesn't sound like good idea to me.

[treeluva]

If you want to help them out because they are like family, then let that be what it is. Have them supply formula, diapers, wipes, etc, and watch the baby. If you need help with some handyman work, then you supply the materials and he can assist or do it.

But the idea of bartering, couponing, tallying, whatever system you plan on using sounds too complicated to me AND has SERIOUS potential for hurt feelings and broken friendships.

If it were me, I wouldn't have agreed to watch the baby more than a few friday nights or whatnot so they could have date nights. Only because what you are doing blurs the line of friendship/business relationships.

[missyali]

I think that they should supply what they feel the baby needs and I like Kim's idea, only I would say 2 or 3 hours of childcare to 1 hour of labor (babies do nap...) and you pay your materials. Just my thoughts. Lucky you, sweet baby smell without the sleepless nights! Have fun!