What parents expect to happen with school fees in 2023 as rising inflation hits
Families have felt the realities of the growing cost of living over the last two years, but what may be less obvious is how schools have faced their own distinct challenges.
While schools have tempered fee increases to help families with the challenges from the economic impact of the pandemic, the cost of delivering education has only grown over this time.
Between what parents expect to happen and the reality of school fee increases next year, our latest research suggests there is likely to be a considerable gap.
Schools are facing increasing budget pressures
Higher inflation has led to increases in the operating costs of schools, and the rising price of energy, school equipment, and cleaning is making it more difficult for schools to maintain important student facilities.
Shortages in teachers have also raised staffing costs, and with wages accounting for 79% of expenses in schools, this has put significant strain on the budget of schools. Together with the rising cost of building projects, has meant schools have had to commit additional spending to continue to deliver quality education to their students.
On top of increasing operating costs, some schools are also seeing a reduction in their government funding, which will further place pressure on their budget.
To meet these financial demands, many schools could be forced to consider bigger fee increases in the 2023 schooling year.
What parents are expecting
Despite high levels of inflation impacting the cost of providing education, our latest survey of 1,100 families has found that the majority are expecting their school fees to rise at a similar rate as previous years of up to 3%.
At 67.5%, the majority of parents we surveyed said they were expecting school fees to increase by less than 3%, and of that, 40.6% were anticipating this change to be between 1-3%.
A larger percentage of parents at higher fee schools with annual fees above $25,000 are expecting bigger increases of at least 3% compared to lower fee schools.
Parent expectations are not aligning with schools
Heading into 2023, bridging the gap between what parents expect versus the decisions schools will be forced to make will be a challenge that many schools will have to navigate. To meet the growing pressures on their budget, some schools have already indicated higher increases of between 4% to 10%.
However, a higher fee increase may not help schools offset higher operating costs if families are forced to a lower fee school. Families experiencing the higher cost of living and housing have even less wiggle room in the household budget for other expenses like education.
Increasing communication and fee flexibility are valuable steps for schools, and we have been busy working with many schools across the country to improve the fee payment experience and prepare for the year ahead.
For parents, staying one step ahead of the looming hike is crucial, and our payment plans make it easier for customers to budget for school fees.
About Edstart
Edstart is a leading technology and financial services company providing funding and payment services for education. We offer fee management solutions to schools and flexible payment plans to parents to help make school fees easier to manage.
To see how we can help you, visit our main website.
Find out more
Edstart is a leading technology and financial services company providing funding and payment services for education. We offer fee management solutions to schools and flexible payment plans to parents to help make school fees easier to manage.
To see how we can help you, visit our main website.
Find out more