Tip for Nannies

I had the pleasure of speaking with the Networking Nannies (@NNSocal) here in San Diego this April. One of the participants had a great question - is it risky for me to use my employer's credit card? What if they don't pay their bill? Does that affect my credit score and can creditors come after me? That led me to do a little research.  The reality is that today's nannies do much more for their employers besides childcare. They go grocery shopping, pick up dry cleaning and take the kids on fun outings. They engage in multiple transactions per day so it makes sense that employers want to add their nannies to their card. There are two ways to do this: Authorized User and Joint Account Holder.

Authorized users can use the owner's account but do not share any of the responsibility to pay off the card. Credit is not affected positively or negatively.

Joint Account Holders are equally responsible for the balance of the account and legally liable for the amount due.

Therefore, if you are a Nanny being added to your employer’s card, make sure you are being added as an Authorized User to protect yourself.

Linda Rogers, CFP®, EA, MSBA is the owner and founder of Planning Within Reach, LLC (PWR). Originally from New Jersey, Linda services clients throughout San Diego county and nationwide. She leads the design of PWR's investment portfolios which utilize broad, low-cost investments that integrate environmentally, socially, and governance (ESG) factors.

Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firm offering one-time comprehensive financial planning, ongoing impact-focused investment management and tax preparation services in San Diego and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.