Many institutes and universities make a lot of money compared to any businesses today. This is because education sector is constantly growing as everyone wants to become more educated. Today education has become a necessity for one to get a decent job. Most parents complain that schools and universities are overpriced but this is due to many other factors which have been stated below.
Maintaining the premises
The facilities provided by educational institutes have increased over the years. Many years ago all a school would need is classrooms with table and chairs. This is not the case today, institutes have upgraded themselves from a simple black board to digital boards. Almost all schools in the west today have their own pool, gym, and classes are fully air conditioned. As a result the overall cost increases such as higher electricity bill, maintaining pools. Most schools get school liability insurance this is to ensure that they cover the damaged premises. This means they need to pay regularly to insurance company as well. In order to manage all this they increase the fees which makes education more expensive. Visit http://www.hkpli.com/freight-forwarder-liability-insurance/
Apart from maintaining the premises, an institute also needs good high qualified staff. Many institutes require a teacher with a degree and this is expensive. However, this is a segment they cannot ignore because teachers or lecturers need to be well educated. Also they need minor staff such as those who would clean the classrooms. This is a huge cost because they need a lot of them. Like any firm an educational institute will also have departments such as accounts department where they have the records of the students who have paid the fees and those who haven’t. They also have a student council department and this is where they need people who come from Psychology field. This again increases the overall cost of the school/ universities.
Medical and other costs
It is important for schools to get product liability insurance policy. This is because they will have to bare a lot of costs in terms of medical. For example there could be an emergency where a student falls sick and has to be taken to the hospital. Also it helps to protect the leased properties such as school bus. It will help to cover the cost when it has been damaged due to accident.
When it comes to school people tend to forget that in order to run a school one needs a lot of money. The only way out is to increase the fee of the students. Getting education is definitely expensive but it is worth it as it’s a lifelong investment. If one cannot afford it there are options like student loans which can help them.