For a while now, a number of Jewish day schools have used “free” (and seriously discounted) tuition as a way to attract new families and grow enrollment. Offering incentives to first-time JDS families seems an interesting idea; the schools bet that the experience will be so satisfying that the families will, afterwards, convert to paying customers.
Turns out, schools aren’t the only ones thinking about “free.”
For those of you who are new to “free” thinking, you’ll find some good background material in Chris Anderson’s 2008 Wired article “Why $0.00 Is the Future of Business” and there’s quite a bit about the subject in Dan Ariely’s great 2010 book Predictably Irrational. More recently—and more Jewishly—on June 4, the AVI CHAI Foundation posted David Bryfman’s great talk on Jewish America’s abundance of “free” programming. The Forward thought it significant enough to write about it not once but twice!
So we thought it would be an appropriate time to talk about the concept of “free” as it applies to Jewish day schools.
The idea of “free” seems to bump up against the demands that Judaism requires of its students. It suggests that there is no cost to Jewish life; an idea which we, as an org focused on day schools’ financial sustainability, can hardly endorse. To understand the challenge posed by “free,” consider a recent article in The Jewish Week, which asked with a kind of nuanced panic:
How can federations and other Jewish organizations inculcate a sense of responsibility in the next generation of Jews, many of whom have been raised on ‘free Judaism’ (think Birthright)? How can we cultivate a sense of gratitude so that the next generation will support summer camps, Israel trips, Jewish day school education, synagogues, as well as new types of innovative engagement we have not yet even imagined?
Ultimately, our students, our families, and the general community must learn that Jewish education comes at a price, and that the best way to meet it is to share the burden.
So should schools resist giving new families a discounted taste of JDS? Not necessarily. The fact is, most Jews have no idea what they’re missing by not sending their kids to day school, and to truly illustrate the value of the experience for these families, school leaders need to make the first step in the door as easy as possible. “Free,” here, helps.
But, as Dan Ariely tells us in our must-hear audio interview, going “free” requires a sustainable follow-up plan. Take a listen to this thoughtful Israeli-American thinker—won’t cost you a dime.
Do parents, would parents, opt to try a school with heavily discounted tuition, just as an experiment, with the idea that if it wasn’t worth it, if it didn’t work out for their children, they would remove their children in 2nd or 3rd grade or whenever the discount ended? Most parents, in my experience, send their children to a school with the hope if not expectation that the child will find his/her place in that school, make friends, and remain through graduation. They wish for and work for success for their children, which typically means, through graduation. This is the reason that “lateral transfers” are relatively rare, except when their are problems in School A and parents seek an alternative with School B.
Ken-
Nice job getting Dan Ariely’s thoughts re: JDS tuition and incentives. Great food for thought as all day schools grapple with how to offer the opportunity for interested families to send their children to Jewish day school, while also ensuring the financial sustainability of the schools.
Nonprofit Jewish camps are in a similar situation, searching for the optimal balance too.
By the way, I highly recommend reading Ariely’s books “Predictably Irrational” and “The Upside of Irrationality.” Really interesting, fun reads.
Kevin
Seems like there’s a fine line between financial incentives and psychological incentives (or perhaps better said, financial barriers and psychological barriers). Rob’s point above is a good one. Or if they are amortizing those savings across say 5-8 years of school, are there other ways to provide that psychological incentive needed to “pull the trigger”? David Bryfman in his ELI TALK shared how the psychology of “sales” gets more people to spend more money then they otherwise would. The illusion of savings actually makes them spend more. I wonder how that research (perhaps on big ticket items, or long term subscriptions) might apply to our thinking on this topic?
1. I hear what you’re saying, Rob. The free (and deep discount) business is tricky. Hopefully, both the parents and the schools that experiment with it do so in good faith.
2. Kevin: I agree with you about the excellence of Ariey’s writing. His blog is quite good: http://danariely.com/. (And there are a series of videos illustrating the points from “Predictably Irrational,” which are useful if you’re looking for a way to introduce new people to his work.)
3. Psychological incentives are indeed relevant, Lisa. For those of you who haven’t seen Bryfman’s talk yet, here’s the URL: http://elitalks.org/video/the-value-of-jewish-learning-and-living-in-the-21st-century/
I believe that Jewish Day Schools need to be affordable as well as sustainable, however, I don’t believe they need to be “free.” Judaism, in my opinion, is not meant to be free or easy, rather a struggle in which we all try to do our best. These struggles give our actions and motives a higher purpose and a greater value. Many times when schools try to offer large discounts, they are just trying to lure students to come to their particular school or perhaps not go to public school. I agree with Dan Ariely, that when we only focus on the cost, we devalue the true benefits of Jewish Day Schools. We might have to incentivize parents to peek through the door with discounts, but our main focus should be on the higher quality of a well rounded education that their children could receive at Jewish Day Schools.
Both Rob and Lisa touch on a critical point – how financial incentives are perceived by prospective and even current parents. The more parents believe they’re getting real value for their tuition investment, the more willing they will be to spend precious dollars on a day school education for their children. If your parents don’t see value in your school, and you lower tuition, or provide incentives, they will see your education as “cheap,” not “affordable.”
Point well taken, David. I agree that we need to do a better job of teaching our students–our communities–that there is a *cost* associated with Jewish education. With Jewish life. The trick is finding a way to ensure that everyone can contribute their fair share to paying the bill. As you know, PEJE is diligently working to help schools with financial sustainability and affordability issues. Shabbat Shalom, K.