Los Angeles Nannies

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Nanny Savings - How To Plan For Your Future

Childcare is a business like any other. We pay taxes and social security, we network, we attend workshops and take classes that better us and expand our knowledge. We invest time and money in our business, so why not use our business to invest in our financial health and start nanny savings for retirement?

For those 9-5ers out there, stocks and trading are easily accessible through water cooler talk and employee bonuses, but for those of us who work in childcare, the only investments we discuss with our co-workers are juice boxes and LOL Surprise. However, these tips and apps make saving money and investing both simple and easy. If you can get your kids to do their homework and eat their greens, trading and investing will be a walk in the park (without the stroller). Here is our top ten list of ways nannies can start preparing for retirement.

Robinhood

Robinhood is an app that allows you to buy and trade stock without having to shell out any of your hard earned date night cash on commissions or fees, making it a great option to invest more of your nanny money for retirement!

Acorns

Acorns is the best app if investing has you feeling stumped. Acorns links to your bank account, rounding up everything you spend to the nearest dollar and transferring them to your Acorns account to be invested automatically. An awesome option for nannies to plan ahead for retirement with minimal effort.

A live-in nanny has great responsibilities, and opportunities for great savings. In a place like Los Angeles where rents are exorbitant, being a live-in nanny can allow you to put all of the money you would spend on rent and commuting to work to your retirement fund instead

Switch to a Cheaper Cell Phone Plan

Do you really need that unlimited data plan? Yes it’s nice to be able to hand your kids an iPad with Baby Shark queued up for those desperate moments, but cutting back on your screen time in general will help you lead by example, and save you lots of cash for your retirement!

Skip the Gym Membership

Who needs a trainer when you are surrounded by elementary-aged kids? Skip the monthly gym membership that you’re too tired to use after a long day of nannying, and schedule workout activities with your kids while on the clock. Kicking the soccer ball or shooting hoops gets your steps in while tiring them out for bed time. It’s a way to bond during play time, and, instead of spending money to keep healthy, you’re making it!

Stash

Stash is a great tool for beginner investors and especially for nannies looking to put away money. It lets you invest as little as $5 and teaches you as you go. It also has articles and tips loaded with a wealth of information on investing.

IRA's

IRA’s are a great option for nannies saving for retirement. Contributing to one of these accounts cuts your tax bill and gives you options to invest. While you’re meal prepping and picking kids up from school, your IRA is growing until you’re ready to retire.

Calculate by Hours

If you’re questioning whether or not something is worth buying, think about how many hours you have spent corralling kindergartners and changing diapers. Would you trade 4 hours of disinfecting high chairs for that new jacket? If not, don’t buy it! Instead, put away that cash for when you’ve changed the last diaper of your nanny career.

Nanny Share

Nanny shares are a great way for nannies to generate extra income for retirement without working extra hours. Team up with two families at a time and watch your nanny retirement fund grow! Not sure how nanny shares work? Reach out to us with any questions.

Consider Live-In

A live-in nanny has great responsibilities, and opportunities for great savings. In a place like Los Angeles where rents are exorbitant, being a live-in nanny can allow you to put all of the money you would spend on rent and commuting to work to your retirement fund instead. Interested in a live-in situation? Check out our job page or let us know! We would be more than happy to help you find your live-in family.

Meal Prep

Dining out can be the biggest drain on your bank account. A meal eaten out now is money taken from your nanny retirement fund. Take your meal prep skills out of your family’s house and into your home! Ask your nanny family if you could cook your own meals while cooking theirs, this way you don’t have to feel like you’re working when you’re off the clock. You can save money by eating home cooked meals and save time by utilizing their kitchen (which, let’s face it, probably has a veggie spiralizer).

Still confused as to how you can get a head start on your nanny retirement? Reach out to us with any questions or concerns and we’ll help you formulate a plan. Nannying is a rewarding and sometimes taxing career, you deserve to feel prepared for your retirement.

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NANNIES - HOW TO ASK FOR A RAISE

Being a nanny is a job, and depending on your commitment to the craft, it’s a profession.  It’s a demanding, exhausting, mentally and physically taxing job with an immense moral reward – shouldn’t the financial reward match the effort? Most businesses have in place quarterly and / or annual reviews with the opportunity to discuss a raise, your nanny position should be no different. If you have been with a family over a year, you deserve a review and very possibly a raise. Below are some important points to consider when asking for a raise.

Nobody will hand you a raise out of the blue.

Asking for a raise is tricky business in any career path, and can be especially difficult to do as a nanny. You work and sometimes live in their home, you’re part of the family! It can feel awkward asking for more. A great place to start is by making a mental decision that you WILL ask for a sit down with the parent/s to discuss the possibility of a raise. Tell a few people close to you that can hold you accountable to it.

Be prepared and have supporting documents.

Next is to start preparing. Once you begin to write a list of all of the things you’ve done with the family, the more motivated you will be to ask and the more confident you will feel. Write down all of your new job tasks, how you’ve taken classes and bettered your skill-set, how you started to drive more, how you now cook for the family, how you’ve helped with the new baby, any additional duties that has been added since you began working should be used as a justification for a wage increase. Have these handy when you ask for your raise, it will be apparent that you are deserving!

Do your research.

Consider the natural rate of inflation in your economy. Gas prices increase and suddenly your pickups and drop offs are beginning to cost you more. Rent rises and your hourly rate isn’t going as far as it used to. These are important factors to take into account when bringing up your raise with your employer.

“It also helps to plant the seed and give them some time to think about your request before catching them off guard. Depending on your relationship with the parents, you might say something like: “Would you happen to have some time this week to sit down together to discuss how things have gone this past year with my position, and the prospect of a raise in my pay?””

Timing is everything!

In addition to preparing your points, choosing the right time to bring it up to them is crucial. Most parents are excessively busy, hence the need for a nanny! It’s imperative that you find a slice of downtime to approach them face to face. Around the year mark is a great opportunity to ‘raise’ the topic, as it’s a common practice in most industries to negotiate compensation after one year. Additionally, asking for a raise after you’ve completed a major accomplishment is also a good time to present your expectations.

Bite the bullet - ask!

It also helps to plant the seed and give them some time to think about your request before catching them off guard. Depending on your relationship with the parents, you might say something like: “Would you happen to have some time this week to sit down together to discuss how things have gone this past year with my position, and the prospect of a raise in my pay?”

Be confident!

Know your worth, know that you give your all and you work hard for this family. Know that if you have been with them a year, you are continually doing the right thing day in day out and they want to keep you around. You have formed a strong bond with their children. You are irreplaceable – there is no other you! They respect your hard work and know that a raise is more than deserved. Chances are your employers are no strangers to a corporate or business structure – they know you deserve a raise and it’s expected of you to ask! If you think you may have difficulties articulating your needs and would feel more comfortable reaching out via email, that’s okay too. Have a close friend or family member write the first draft of the email for you, it removes any anxiety, provides a great starting point, and your friend has far less hesitation about describing your value than you do. Los Angeles Nannies has composed many ‘Raise Request’ emails and we would be happy to do the same for you. Drop us an email with a few details on your situation and we’ll reply with something you can forward directly to your nanny family!

Make your intentions clear.

Know exactly how much you’re asking for, but also be realistic. Don’t set your hopes too high and don’t ask for $0.25 per hour raise. We’ve seen increases range from 5-40% after the 1st year, so decide where you would like to be on that scale. If you currently earn $15 per hour and want to make $18, that’s a 20% wage increase ($3); $16.50 is 10% wage increase. Ask other nannies in your area to get a feel for what they make, and check if your experience and responsibilities line up with theirs; Los Angeles Nannies can also help with this.

I asked, they said no… now what?

Even if you got your courage up and did all the work and they said no, ask why. Without letting emotions get the best of you, listen to their reasons; ask them if it would be possible to set up another review in a couple of months to approach the topic again after you make adjustments per their feedback (within reason of course). Check if there are other responsibilities to take on that could see your hourly wage increase accordingly. Remember that there are many reasons why a family won’t or can’t offer a raise, and it’s important to understand what they want moving forward. Perhaps providing an increase is not within their financial capability, which means you may want to reconsider working with this family for the long term. For parents that possibly cannot afford a raise, an alternative could be to ask if they would consider paying for courses specific to your job or sending you off to a nanny conference (INA) and assisting with hotels and airfare. There are many alternatives to a financial raise to consider that can help save you money and demonstrate to the family your dedication to your job.

If you have prepared your reasoning well, presented yourself professionally and with confidence, there is no reason why you won’t be treated as a professional and receive the raise you ask for. We’re here to help so drop us a line!