The Weekly Wednesday: Tuition Benefits are Changing- Fortify Your Contracts
FREE for EVERYONE THIS WEEK
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Readers,
On January 8th, 2025, I published this amazing article, but you don’t need to read it. I am going to share the important info in this free and open Weekly Wednesday.
Before we begin, I would like to remind you that if you spend $50.00 annually, you will gain 20X that in financial advice, negotiating advice, and the kind of data that will make you an absolute legend at parties.
Here are the fifteen locations with optimal savings reported for all types of people/families:
At the time I did this survey, I started digging into tuition policies for schools. I noticed many schools were reducing or removing tuition benefits.
Your salary will be specifically guaranteed in your contract. However, tuition policy can often be stated as flexible with phrases like, “the school will try to accommodate…”, or “dependents will be given discounts.”.
Tuition Trends
I found a report from ECA International (Employment Conditions Abroad). You can read it here: https://www.eca-international.com/insights/blog/february-2022/how-have-international-school-fees-changed-recentl
According to the report,
The Covid-19 pandemic significantly disrupted international schools, leading to widespread closures in 2020 and a shift toward remote learning. Schools invested heavily in digital infrastructure and implemented measures like teaching bubbles, masks, and improved ventilation to prioritize in-person learning in 2021. These adaptations, alongside economic pressures, influenced school fee trends.
Fee Trends:
2020: Widespread fee freezes or minimal increases (average 1% globally) due to school closures, reduced expatriate demand, and parental concerns about educational disruptions.
2021: Average fees increased by 2% in local currency terms, reflecting a recovery from 2020's 1% rise but still below the 3% increase seen in 2019.
Fee freezes remained common in 2021 (50 countries vs. 58 in 2020), but schools that raised fees did so more significantly than in the prior year.
Regional Variations:
Africa: Largest increase at 2.9% in 2021, compared to near-zero change in 2020.
North America: Fees rose by over 2%.
Asia and Europe: Increases of 1.7%, but these regions have the highest average fees (USD 24,748 in Asia, USD 23,194 in Europe).
Global Average: Secondary school tuition averaged USD 20,757 annually.
Cost Drivers:
Investments in digital infrastructure and Covid-safe measures contributed to fee hikes.
Higher fees in Asia and Europe significantly impact expatriate assignment budgets.
This bar chart illustrates the slowdown in fee increases during the pandemic compared to pre-COVID levels.
Global Average Fee Increase (%)
3.5% |███
3.0% |███ 2019: 3%
2.5% |██
2.0% |██ 2021: 2%
1.5% |█
1.0% |█ 2020: 1%
0.5% |
0.0% |
+----------------
2019 2020 2021This bar chart compares fee increases across regions in 2021, highlighting Africa's sharp rise.
Fee Increase by Region (2021, %)
3.0% |███ Africa: 2.9%
2.5% |██
2.0% |██ N. America: 2.0+
1.5% |█ Asia: 1.7%
1.0% |█ Europe: 1.7%
0.5% |
0.0% |
+-------------------
Africa N.Am Asia EuropeThis chart shows the average cost of secondary school tuition, emphasizing the high costs in Asia and Europe.
Average Secondary School Fees (USD)
25,000 |███ Asia: 24,748
20,000 |███ Europe: 23,194
15,000 |██ Global Avg: 20,757
10,000 |█
5,000 |█
0 |----------------
Global Asia EuropeKey Insights
The 2% global fee increase in 2021 reflects a cautious recovery from 2020's disruptions, driven by investments in infrastructure and safety measures.
Africa saw the largest fee hikes, while Asia and Europe remain the most expensive regions, posing challenges for expatriate budgets.
The data suggests a balancing act between maintaining educational quality and managing costs amid ongoing uncertainties.
As schools are struggling with their normal business model, they are trying to shore up deficits by making changes to benefits, like tuition.
Let’s Put This In a Family Expense Context
Let’s assume that you are a teacher or teaching couple and your employer shifts from two children for free to one child is free and the other half off (with regard to tuition only, not expenses or uniforms).
Your annual cost for two children would change from 0 to $10,378.50 (That is about 864 moderately priced adult beverages).
And here is a sample breakdown by region,
1. Global Average
Full tuition per child: USD 20,757.
Child 1: Free (USD 0).
Child 2: 50% of USD 20,757 = USD 10,378.50.
Total cost for two children: USD 0 + USD 10,378.50 = USD 10,378.50.
2. Asia
Full tuition per child: USD 24,748.
Child 1: Free (USD 0).
Child 2: 50% of USD 24,748 = USD 12,374.
Total cost for two children: USD 0 + USD 12,374 = USD 12,374.
3. Europe
Full tuition per child: USD 23,194.
Child 1: Free (USD 0).
Child 2: 50% of USD 23,194 = USD 11,597.
Total cost for two children: USD 0 + USD 11,597 = USD 11,597.
In Writing - Future Proof Your Situation
I know a couple who traveled with two children. They disclosed at a job fair that one of their children had a diagnosis and needed support. Everything was disclosed in writing from the parents to the school (this is what eventually helped).
After arriving and starting the new contract, the school informed the family that there were no spots open for the child who needed extra support.
They stated their policy did not guarantee a spot, only free tuition if a spot were available.
This teaching couple was savvy enough to contact the job fair sponsor. They shared all the information they presented. The job fair sponsor called the head of the school directly.
The parents were released from their contracts and given enough severance to get them repatriated back home.
This was what many would call a well-known Tier 1 school. This was also not a win for the family. It was a huge setback with some mitigation of damage.
You’re Not a Bad Person for Protecting Yourself. Get it in Writing.
What you are looking for in the contract, or a promissory letter/email, is:
Placement is guaranteed for X number of children
Tuition is set at, or discounted to, for X number of children
Notice of policy change will be presented before resignation deadlines for employees (critical)
The first two can be negotiable. Let’s assume there is a match, but you need more money. The budget may be controlled by HR or some other entity. However, principals and heads of schools can often make some special circumstances for enrollment. Saving on tuition = more $$$.
The strategy here is to ask with a guarantee of confidentiality. You will not disclose your enrollment plan to anyone, and if you do, you will be subject to an immediate adjustment.
This allows for a deal to be made outside the normal contract. Everything needs to be in writing (email is fine).
Good luck! And let me know what you think.
