Earlier this year, U.S. Bureau of Labor Statistics reported a 3.5 percent increase in nationwide prices year-over-year, affecting the costs of everything from school supplies to employee cost-of-living adjustments, and even utilities. To maintain a strong financial foundation, school administrators can prioritize reducing school expenses without sacrificing student and family experiences.
To provide school administrators and financial officers with budgeting strategies aimed at minimizing inflation impact, Education Brands created the 2024 Trends in Payments and Tuition Management Report. Combining data points from national researchers with key insights, this report offers actionable strategies to help schools thrive even during inflationary times.
You can find an overview of this report below:
How Inflation Impacts School Costs
With many schools dealing with increased competition for students and an evolution in staffing needs, the importance of balanced budgets becomes even higher. Yet, the Consumer Price Index reflects the rising costs of running a school continues to climb, with prices for food, utilities, medical supplies, and more increasing since the start of the year.
To meet enrollment goals, administrations need to ensure budgets and financial strategies reflect these realities and look at reducing school expenses where feasible to ensure competitive tuition rates.
Strategies to Reduce Inflationary Impact
Schools need to get creative when cutting costs. In broad terms, our trends report finds two categories to doing such:
- Find efficiencies for the administrative office, mainly automating as many tasks as possible to free up staff to address additional priorities.
- Provide greater flexibility to families, such as offering multiple ways to pay tuition or expanding needs-based financial aid.
These strategies combine to balance immediate financial needs with a commitment to affordability.
Having the right payments provider is key here. With the ability to streamline tuition and fees collection, automate financial tasks, and improve overall financial efficiency, the difference between decent and best-in-class payment software makes a world of difference.
Private schools offer a unique faith- or purpose-minded community for students, alumni, and their families. Building that community comes through open communication around tuition fees and offering flexible payment offerings to build trust and make learning accessible to families of all financial situations.
Long-Term Strategies for Success
The 2024 Trends in Payments and Tuition Management Report ends with a pair of actionable checklists, one detailing key questions K-12 private and independent schools can ask to identify the right fit in a payments solution, and a full list of ten strategic ideas to help schools deal with inflation and other financial impacts in the future.
Here are a few of those strategies:
- Provide open communication with parents. Explain the reasoning behind tuition changes, educate with resources and seminars that give budgeting advice, and offer diverse payment options.
- Prioritize fundraising opportunities. Plan regular fundraising events and broadcast regular communications to maximize donations, creating new avenues for student financial aid.
- Utilize purchase cards that offer families payment flexibility and are designed for schools.
The worst of the economic uncertainties that have defined this decade may or may not be over, but schools can succeed by continuing to make financially sound decisions that ensure the long-term success of their students and community.