Wednesday, November 28, 2012

Think Twice Before You Pay Donations To Schools

Seeing the present atmosphere of admissions to educational institutions, one may have to think twice before having children. The increasing lust for convents education and the ever increasing fees of these institutions throw a great burden over the parents and they are becoming scary. This combined with the attitudes of some affluent class people ready to throw away any amount of money to get a seat for their wardens is worsening the case.

Gone have the days, when people used to get quality education in municipal or government run schools and private institutions. Now our people have become crazy and exhibitionist. They think of their status and prestige and don't bother throwing away money. This mentality of our people is one of the reasons for all this present state of economic crisis that we are facing and unable to come out of it.

I don't think the need for such extravaganza! Is there any lack of teaching skills in our society? Or is there lack of educational schools and colleges in our country? Why such mad rush and inflated demand  for convent scheme? Is there more quality with them than our ordinary educational institutions. Where is the need for going on pushing their fees structure to the sky heights?

Let us think reasonably. Assume you are establishing a convent school with education from LKG to Class V. What you want is 7 rooms for teaching, one room for Principal, one room for office and one more room for teachers to take lunch or spend leisure hours and the required furniture for these rooms.  Let us assume that furniture and other registration and permit for running school expenses are one time expenditure which shall be recovered in long run. Then monthly rent say 25000/-,salaries total 50000/- roughly for total 10 persons including principal and other electricity, sanitation,etc.5000?- Total monthly expense comes to around 80,000/-

Now, there are 7 classes and 40 students in each class. If you charge a monthly fee of Rs.300/- per student it will come to 84,000/- So all your expenses are met with that fees receipts. Now, you will be charging higher fees for higher classes which will be your sole income.

So from the above calculation, you can see that there is no loss even if you are charging lower fees. The reimbursement of your one time capital expenditure and other time-to-time expenses can also be recovered very easily by slightly adjusting the fee structure. Then where is the need to pay huge amounts of fees and the need for larger donations? It is simply extravaganza.

The above is merely an example to show how you can calculate things and come to decisions before you act. You can calculate in your own way and act. Any suggestions and comments are welcome.

So, you better think twice or even thrice before making unnecessary large sums to your schools and colleges. It will only result in inflation in the long run.