5 Strategies Nannies Can Use for Managing Petty Cash

Picking up lunch in a restaurant, taking a trip to the zoo or spending the day at an arts and crafts workshop are effective ways of keeping the kids you watch entertained and away from the television, but they also cost money. In most nanny/employer relationships, there is a petty cash arrangement in place to ensure that the nanny is able to pay for all of the daily expenses related to the care of her charges without dipping into her own paycheck. While making sure that kids’ financial needs are met is not the responsibility of the nanny, she is charged with the task of managing petty cash in a responsible and reasonable manner. These tips can help you to keep your petty cash arrangement in order and track it carefully to ensure there are no discrepancies, no disputes arise and that there’s enough money left to manage all expenses until the fund is replenished as per your agreement.

Consider a Dedicated Credit Card

Provided that you have a strong relationship with your employers and have established a certain level of trust, taking out a dedicated credit card may be the best option for handling your petty-cash expenses. This arrangement will allow you to ensure that all of the kids’ financial needs are met without requiring you to keep scrupulous records or manage actual cash, but can become problematic if either party fails to hold up their end of the deal. Before taking out a card in your own name and racking up charges, be sure that your employers are willing to honor their financial responsibilities. The last thing you want is to get stuck with a bill that affects your credit rating while you’re waiting for your employers to reimburse you or pay off the balance.

Use Smartphone Budgeting Apps

The same apps that you use to keep track of your personal expenses can work for the management of petty cash, especially if you’re given a set amount of money and expected to keep your expenses within a strict budget. Look for apps that allow you to take notes or keep detailed records, so that you’re able to account for any money if you’re requested to do so by your employers.

Keep Receipts and Expense Logs

Unless your relationship with your employers is governed by an unprecedented level of trust, they will probably want to see where the money they give you is going and how it’s being spent. Including a daily breakdown of expenses and enclosing receipts to corroborate them with your daily nanny log entries is a great way to keep them abreast of all purchases and to account for the money that you spend. After all, a petty cash budget is intended to ensure that the kids’ needs are met, not money that goes into your pocket at the end of the day.

Build a Budget

If you know how much money you’ll be receiving at the beginning of the week, sit down to create a comprehensive budget so that you’re not running dangerously low at the end of the period. This will not only help you manage the funds effectively, it will also allow you to build a structured schedule before heading into each week so that you have everything well-organized and prepared.

Work Out Approved Expenses in Advance

On occasion, you will probably find that more expensive events are on the bill. Before signing the kids up for a pricey workshop that’s out of your petty-cash budget, make sure you clear it with your employers. Don’t plan a trip to an expensive amusement park and get the kids excited about the prospect if you haven’t obtained approval, and make sure that there will be additional room in the budget in the form of a temporary increase for the event in advance.

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