Discussion Topics

International Schools With Money Problems

May 11, 2018


Working at an international school that is currently having money problems is not fun for all stake holders. Let’s face it, international schools of all types can encounter a financial crunch: Tier one schools, big and small schools, Profit or non-profit ones, etc. During these difficult times, a lot can change or just stop completely for things that are on the school’s budget.

Money Problems

Teachers get nervous. The parents get nervous. The school board and admin are nervous. Even the students might get nervous.

There are both reasons that are outside of the school’s power and inside the school’s power that might get the school into money problems.

One obvious cause that is somewhat out of the school’s power is because of declining students numbers. We all know that international school families are the ones bringing in the money to the school.  Some international schools in certain countries get money from the state for various reasons, but those monies do not cover all that a school needs to run smoothly. The majority of the school’s income comes from fee-paying parents or actually fee-paying companies that the parents work at.

But what then causes parents to take their child out of your international school? Maybe there are now a few other international schools in the community (cheaper ones) that are convincing families to change schools. Another reason that causes families to not re-enroll is also related to how the big-named companies are doing in the area. If they are not doing so well, then they need to cut employees. It’s pretty certain that some of their employees have families with children that go to your school. If a lot of people get fired at these big companies, then families tend to be forced to leave the country, and the obvious result is that they also stop sending their children to your school.

Companies are also starting to limit or stop completely the tuition benefit that they offer to their expat employees. Even expat parents with nice jobs will reconsider how they spend their personal money when the tuition at the international school they are sending their children to is getting on the expensive side.

Another cause of international schools with money problems stems from the mismanagement of the school’s income.  There are a fair amount of international schools that have business departments that are a mystery to staff as a whole. Typically the business is staffed with all locals. If you don’t know the local language and the local system of doing things, it is hard for a general staff member to know how they are doing and if they are doing things in the correct manner. For international schools, this mismanagement can result in drastic outcomes, from embezzlement to money flow problems.

Most for-profit international schools, even in times of having money problems, pay their staff on time and for the correct amounts. However, some teachers at these for-profit schools have experienced not getting their monthly salaries paid on time; sometimes 2-3 weeks late! How can staff focus on their job when they are not getting paid on time so that they can pay their rent? An international school that isn’t paying their staff on time surely has major money problems and cash flow. The worst outcome, of course, is that the school just has no other choice but to completely close down due to lack of money to run itself. It would be interesting to see how many international schools close their doors in this manner.

The most important thing to think about when your international school is experiencing money problem is your job security. International schools with money problems is the perfect condition for some teachers to be let go. Paying the teachers’ salaries and benefits are for sure the biggest expense that a school has. Combined with declining students numbers, there are clear reasons that a school simply just needs to downsize its staff.

Money Problems

When you know you might be let go because of a reason that has nothing to do with you or your job performance, it does not feel good.  Even more complicated, some teachers get let go, but they decide to keep you. The staff really needs to be supportive of each other when this kind of situation occurs.

There are many other factors that come into play when an international schools has money problems, and it is certain that the situation is not a welcomed one for any stakeholder. Luckily, many of the international schools around the world are thriving out there. It has been well documented that new international schools are popping up around the world all the time, especially in the Middle East and Asia. Let’s hope that these new international schools will learn from the unfortunate circumstances of the past ones, so that they can thrive and make it less likely they will experience money problems.

This article was submitted anonymously by an ISC member guest author.