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when I filled out the paperwork before I was as honest as I could be but also realistic. I put down truly what I would pay for as I do for my own bio children. It doesn't matter if you are way over what their expectations are, just put down realistically what it would be. Especially with children your ages you will be replacing clothing quickly as they are on big growth spurt patterns. Write these things down. Also document in there anything that you read about in the files, if they soil their things, etc. I know they are young, but you need to document and point these things out.
As for daycare document that too in one of the other sections. There are separate sections for the furniture you need to supply, clothing, their activities etc. This would also include any extra classes that you might want to put them in as well like mommy and me classes or little tykes programs. So basically you just put it all down there and then they will make their adjustments.
I hope this helps. It is pretty easy to fill out once you get started. It was daunting for me to when I started. Congrats!