Fees Management
Where now for school fees?
An understanding of your school’s market, by comparing what has happened in the past with what is likely to happen in the future, is critical to discharging your fiduciary duty. Jean-Marc Hodgkin reports on a new approach
As a school leader, you should be able to answer the following questions:
• what is the market size for my product?
• what is the aspirational demand for my product?
• what is the demand for my product and what prevents it from reaching its potential?
• have I priced my product correctly? and
• how do I know the answers to the above?
Consumer credit
Some schools are trying to actively help their parents financially. David Emanuel writes about flexible fee payment options for challenging times
In the current economic climate, both schools and parents are seeking more flexible methods for the payment of school fees during the school year to help with cashflow. However, care should be taken before agreeing deferred payment terms with parents. Many schools that offer assistance unwittingly contravene the Consumer Credit Act 1974, as amended by the Consumer Credit Act 2006 (the Act).
Taking the credit
Is your school offering the option of credit and debit card transactions in its fee collection? Richard Bradley explains the benefits for both parents and schools
More schools are incorporating the acceptance of credit and debit cards as another option for parents when paying for termly fees, school trips and uniforms. There are benefits for both parties as an estimated 10 per cent of parents have doubts about their ability to meet costs and the remainder may have to juggle their finances or make further sacrifices to continue paying.
Give and take
As many parents struggle to meet their commitments in the current climate – and with uncertain times ahead – fees are the single most important area of marketing to get right. Stephen Martin-Scott reviews your options
In terms of your current parents, if it is not already happening, some will be making representations to you, having found themselves in financial difficulties. You may feel inclined to help them through this difficult financial time. But how long will the recession last? And how long can you extend terms to these parents?
Call collect
Tough times is the mantra, Michael Swan advises on how to manage school fees collection
Writing this article in the midst of an apparent financial meltdown, a deteriorating credit crisis and part-nationalisation of some of the UK’s biggest banks, it is difficult to retain any semblance of composure and equanimity. The unprecedented events over the autumn of 2008 that littered the world with financial detritus have shocked governments, businesses and individuals, who will no doubt be the most affected over the coming years as a result of these earth-shaking financial disruptions. All we do know is that the world is going to be a very different place when the problems have been unravelled.
Cashing up
Be wary of inadvertent money laundering. David Sewell advises against accepting fee payments by cash
The Metropolitan Police’s Proceeds of Corruption Unit is seeking to identify “politically exposed persons”, typically members of overseas governments who have come into the country with ill-gotten-gains, who are considered likely to use the opportunity to launder these sums when paying schools fees for their children. They are also keen to identify those involved with drugs and tax evasion, who account for most of the rest of the illegal cash in the system.
Where the money comes from
Historically, it has been difficult to comment objectively on the way parents fund school fees. Rob Roy reveals the findings of a new survey that looks at how the cost of children’s education is met
Previous attempts to get reliable data from parents have always foundered on the understandable reticence of schools to broach the subject with their own paymasters. Previous surveys – for example, the Why and How Parents Choose Independent Schools surveys, carried out by MORI for ISIS between 1989 and 1997 – did elicit some basic information. For instance, they found that fewer than a third of parents made any advance plans for funding school fees, and that most parents used their own earned income to meet the cost.
School fees: farewell to cheques
Cheques, as an instrument of payment, are in rapid decline. Where does that leave schools in this electronic age? By Norman Crawford
Internet banking can replace the cheque, but will do nothing to improve late payment. The problem is a simple one; manual payment requires the parent to do something, and inaction or lack of discipline invariably results in non-payment. It is reported that up to 25 per cent of parents pay their fees late, an occupational hazard for school bursars and their staff who spend half their lives in credit control. This is avoidable.
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School fees: from termly to monthly
As school fees continue to rise, how will this affect schools and parents? By Michael Swan
Over the last few months, there has been an increase in media coverage on the continuing rise in private school fees. The headlines reveal the growing pressure and stress that parents are suffering: “Middle classes priced out of independent education”; “Why school fees have parents over a barrel” and “School fees soar out of reach for professionals.”
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On the nail
Financial pressures are mounting up on parents as school fees continue to rise. How can schools help? Michael Swan suggests a fee payments strategy that matches parents’ usual spending habits
Over the past few months, there has been an increase in media coverage on the continuing rise in independent school fees. The headlines reveal the growing pressure and stress that parents are suffering: “Middle classes priced out of independent education”, “Why school fees have parents over a barrel” and “School fees soar out of reach for professionals.”
>> read more
Direct access
Unpaid or late fees are the bane of a bursar’s life. There is a solution to the problem, however. Norman Crawford explains how the collection of tuition fees can be made stress-free
Direct debit is a highly desirable tool for the repetitive collection of sums due from individuals, such as tuition fees.
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The direct approach
Parents often come under scrutiny for failing to pay termly billed tuition fees on time. Some parents, described by one bursar as the “usual suspects”, fail to do so every school term. Yet this is avoidable, argues Norman Crawford
If only 10 per cent of parents pay late, the nuisance factor is irritating. With 20 to 30 per cent of parents paying late fees, this can become a serious problem, especially as scarce resources are tied up for a third of a year in pursuit of them.
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Money, money, money
School fees have continued to rise rapidly in the face of huge increases in costs to the schools themselves. But how will parents be able to continue to educate their children independently, asks Michael Swan
The cost of private education has soared by 43 per cent over the last five years, according to figures released in August this year by Halifax Financial Services.
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Paper tiger
The cheque is dead; don’t encourage parents to revive this outdated mode of payment. Norman Crawford advocates the case for direct debit with monthly payments
Around a half of today’s parents are first-time adopters of independent education and over 70 per cent are salaried monthly. These new customers rarely pay bills by cheque; most large financial outlays are paid by direct debit and plastic.
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Show me the money
Fee collection is one of the most critical functions of the bursary, with several methods available to schools. David and Helen Belchamber argue the case against early collection methods on monthly payments
It is well known that the cost of educating a child for 15 years at an independent school can equate to the cost of buying a house, a small one for day fees but a large one for boarding. As a result, there are now few schools that do not help parents by making it possible to pay fees monthly, either by offering an inhouse arrangement or by outsourcing it to a company that offers parents personal loans for this purpose.
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Book review
School and University Fees Simplified by Tony Granger
RRP £14.99
ISBN 9781852525989
School and University Fees Simplified explains how parents can fund their children through an independent and/or university education.
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