Money and the Nanny Relationship

I have often heard that money, and the control of money, is the root of most marital problems. I would posit here that money is also the root of many nanny: family problems too.

Why? I wrote last week about some families not wanting to pay the employment taxes for their nanny. I have answered a series of emails in the interium with further 'money' problems. The nanny whose employer didn't deduct any taxes for six months and came to her with a $1047 bill for back taxes. The employer who will not reimburse mileage to drive and pick up the child from school daily (160 miles per week) because that expense 'should be covered in the $11/hour salary.' The nanny who worked for 27 months without a raise and was fired when she asked for $100 more per week to care for the newborn twins in addition to the 4 year old. It's not always the employer in the wrong either; plenty of 'nannies' have quit their jobs when they realize that their income is being reported to the IRS and they will have to pay income taxes.

I'm not sure what this is all about. Perhaps the After the Holidays Financial Blues set in this time of year. The family may be worried about the credit card bill for the holidays, or about their own taxes. The caregiver might be taking a good hard look at her finances and realizing something has to give.

Childcare is a huge expense for families. At the same time, child care providers are paid among the lowest wages in the country, many barely above minimum wage. Perhaps some tension around finances is to be expected. The real risk in these situations is the long term damage to the nanny: family dynamic, often resulting in the termination of the nanny's employment and the family's need to spend time and money recruiting a replacement.