Today, I’d like to start a new video series on “Making Yeshiva Tuition More Affordable”
So, One of the biggest line items in any frum family’s budget is yeshiva tuition. The cost of a yeshiva education has continued to rise, becoming a financial burden for many families. For years, Rabbinic and lay leadership have struggled to figure out how to make tuition more affordable. Certain communities have made some progress, while many others are perpetuating the ever-rising costs.
I’m going to offer my own suggestions on how to tackle this issue to relieve the financial strain on many Jewish families across the country. It focuses on a multi-pronged approach where various parties, including the yeshivos, families, and the frum community at large will need to make sacrifices to collectively address this issue.
Let’s first discuss, The Responsibility of Yeshivos
First, they should implement a Semi Annual Expense Review: It costs a great deal of money to run a yeshiva. Teachers, administrators, security, and countless other professionals need to be paid so the students receive the best possible educational experience. However, as with a family budget, it’s important to have semi-annual reviews of all expenses to ensure money is not being spent on unnecessary purchases or services. These may be subscriptions, vendors, or service providers that are not necessary. It may also reveal inefficiencies, duplicate costs for similar services, and other expenses that are redundant.
In addition to revealing wasteful spending, a regular review process will also empower the school with the information to go to the market and find the most cost-effective services. Keeping an eye on expenses alone can save tens of thousands of dollars a month. Ideally, this can be done by an independent accountant not employed by the school to offer objective advice.
Next is they should Rely more heavily on technology: There are yeshivos around the country who have been relying more on technology as a more cost-effective way to run our schools and educate our children. While I am not an educator, I can speak from personal experience as a business owner that technology can be used in lieu of hiring more personnel. Technology has streamlined my work, allowing me to work more effectively without all the overheard that was necessary years ago. This is true of the many service providers and venders with whom I partner, and it is certainly true with the educational system as well. It’s essential for yeshivos to embrace and harness the power of technology.
Another more broad suggestion, is the introduction to no frills competition: Many of our yeshivos’ offerings to students include athletics, after school clubs, assemblies, celebrations, and other festivities throughout the school year. To be clear, I think all these extra curriculars are a good thing and I’m happy to pay premium dollars for these wonderful opportunities/experiences. They are fun and engaging for children, and certainly some of the most memorable experiences for students as they get older. However, all this additional programming has additional costs. There should be a “no frills” alternative yeshiva option where these programs are either eliminated or are offered exclusively by volunteers at no additional costs. I understand this is a big sacrifice, but there are countless families who would benefit from a significant tuition reduction and more financial breathing room. I think there is a market for both types of yeshivos, those with all the bells and whistles and those that offer a great education while leaving extra curriculars to be organized more informally outside of school hours.
Competition and different yeshiva models will promote innovation, better experience for our children, and price pressure on the most expensive schools.
In the next video, I will discuss the responsibilities of families to make Yeshiva tuition more affordable.