Does your nanny take your kids out for activities? Outings like a special ice cream treat or a visit to the Children’s Museum often come with small expenses, and it helps to have a clear plan for how those costs get covered. Should your nanny pay out of pocket and then get reimbursed, or is there a better approach?
Below, we walk through how your nanny should pay for those activities (hint: not in cash) so the system is simple, safe, and stress-free for everyone.
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Does your nanny take your child on outings or out for activities?
They may need to cover the cost of entry for the activity, or an ice cream treat afterwards, and perhaps even pay to refuel the family vehicle.
They may also need to order special supplies for craft activities.
What is the best way to handle money for these expenses?
The best way is not to have your nanny pay for these things out of their own pocket and then reimburse them.
It’s fine if that is discussed and agreed upon, but many nannies worry about covering the cost of these expenses out of their own pockets.
You could choose to give your nanny cash, but there’s always a chance that it wouldn’t be enough for the activity, or the unfortunate event where it’s lost or stolen.
A simple approach that works well for many families is to give your nanny a credit card or a prepaid debit card for these expenses.
You can link those debit cards to a cash app such as Venmo, and it’s a nice way to track those expenses and then easily replenish that account if and when needed.
With a credit card, in the event that it is lost or stolen, you’re covered if there are any fraudulent charges made.
Whatever method you use, make sure you have a conversation about amounts that are pre-approved and a threshold for any larger purchases that may be needed.