Final Reflective Essay

Introduction
Financial planning is a crucial and integral component of managing higher education
institutions. For those that do not partake in the financial planning process it is harder to
understand the difficulty of this decision making process. As an advisor I do not find myself in
situations where I have to make tough decisions regarding the financial health of Georgia State
University; however at some point in my career I wish to be in a position where I am able to
display some level of input in an institutions decision making process. With this course I was
able to better understand the role financial planning and decision making plays on an institutions
growth and success. I found most of our reading and discussion materials in this course highly
interesting but some points made a greater impact than others. Understand the budget and
allocation process was eye opening. It was also interesting to learn that an important aspect of
financial management in higher education is marketing. Lastly in our final readings I was
intrigued to learn how financial management in higher education is handled internationally.
Budget and Resource Allocation
Like in most areas of management creating a budget is a useful tool to organize the
allocation of resources. In higher education, budgets and goals dealing with a financial budget
helps to allocate resources between programs and departments. In chapter five Kretovics (2011)
states that the budget, for all practical purposes, is a financial representation of the institutions,
departments, or programs values and priorities; simply put, if it is important it will get funded
(p. 79). Not only did I agree with this statement but I also find this idea to me a very influential
lesson to learn in higher education overall. As an administrator its very important to understand
what requires the most attention and also what requires attention now rather than later.
Higher education institutions have hundreds of departments, services and programs that
requires funding to grow and sustain. Administrators at the highest levels who make financial

Final Reflective Essay

decisions find themselves in situations where they are required to decide which department or
program will receive how much funding each fiscal year. The budget they create and the
financial decisions they make are always under the microscope. Federal government, state
government, students, alumni, and the community is watching to see where funding is increased
and where funding is cut. Georgia State University has continuously been working to increase
graduation rates, retention rates and provide student with quick advisement assistance. To do this
Georgia State created a centralized advisement unit where each advisor only has about 300
students in their population. Millions of dollars worth of funding went into creating this
advisement unit and Georgia State has been recognized nationally for its success. This is one
such example where an institutions budget decisions defines what that institution considers most
important in its strategic goals and mission.
Marketing
Today higher education institutions cannot rely solely on federal or state funding.
Revenue from tuition, alumni donations, corporate sponsors and endowments are extremely
important for the financial health of an institution. To attract more students and persuade others
to invest in them, both private and public institutions have to implement useful, state of the art
marketing techniques. Marketing in higher education is even more important today when the
supply is higher than the demand. Higher education institutions know that they are providing a
service that is not tangible, requires effort from the customer and takes time and patience.
Marketing an experience or knowledge is harder to do unlike a tangible product.
In chapter 8 Kretovics (2011) states that Marketing is one of the most important ways in
which institutions of higher education connect to the outside world and informs the public
exactly what we do and what we are about (p. 162). We now live in a world where students,

Final Reflective Essay

looking for a suitable higher education program, have thousands if not millions of options both
domestically and internationally. Students window shop and apply to multiple institutions giving
themselves the option to decide until the last minute. My own personal window shopping
experience as a wide eyed high school senior is one that I still remember. I visited 4-5 campuses
with my parents both in the state of Georgia and out of state. Each visit was marked with campus
tours and a glimpse of the college brand empire. Bulldog nation won in my case and I set out to
attend the University of Georgia. Branding and creating a marketable image is one thing that
UGA is especially famous for.
International Higher Education Financing
Financial management in higher education varies from nation to nation. In the United
States higher education is typically the responsibility of the state. Each state may have a different
agenda when it comes to higher education. In other countries especially in Europe education and
higher education are typically the responsibility of the national government. In most European
countries the minister of education is a leading figure responsible for higher education. One
aspect of higher education that is common from nation to nation is the increasing cost of higher
education. Nations around the world are now more and more reliant on tuition as a source of
revenue. One thing I found interesting from the readings was that in many countries outside of
the United States student fees at private institutions are regulated by the governing bodies of
those nations. In the USA, about 26 percent of all undergraduates are enrolled in private higher
education institutions. This is actually below the worldwide average of 31 percent (Lynch,
2013, p. 1).
Higher education is a important predictor of economic growth and progress around the
world. The higher the literacy rate the less likely a nation is known as third world or developing.

Final Reflective Essay

Each nation aims to increase the number of students that graduate with higher education degrees
since a highly educated workforce is crucial to economic improvement. In some countries like
China the demand for higher education is so great that higher education institution are not able to
meet that demand. Many students from China apply to institutions in the United States, Europe
or Australia (Lynch, 2013, p. 1).
Conclusion
Budget creation, marketing in higher education and the understanding of financing at an
international level of higher education are all crucial components of leadership in higher
education. Before this course I had a very insignificant understand of financial management in
higher education. As an academic advisor I have not had the opportunity to partake in any
significant financial or budgetary decisions; however as I grow in my field I hope to better
understand the financial aspect of higher education. An institutions financial success and the
intelligence with which a budget is created or resources are allocated all benefit in the growth
and progress of that institution. Without an organized budget an institution can negatively impact
its image in the community and nationally. How an institution chooses to allocate resources often
advertises to the world what that institution is prioritizing.
Creating a brand image and a strong marketing core allows higher education institutions
to reach out to students that typically meet their student demographics. As an advisor I also
believe that marketing plays a significant role from department to department as well. Students
are constantly making the decision to change majors or even change schools and schools have to
find creative ways to retain students. As someone that wants to supervise a study abroad
department or work with international students in the future I was also intrigued by the
differences in financing higher education around the world.

Final Reflective Essay

This course has given me a better understand of financial management and a new respect
for those individuals that have to make financial decisions in higher education. As I grow in my
field I need to learn to create a budget that is both fair and meets the goals of my institutions
strategic plan. Ive learned that resources cannot be correctly and fairly allocated if
administrators are not aware of the institutions most current needs as well as future needs. An
institutions financial health is contingent upon how that institutions revenue is being utilized.

Final Reflective Essay

References
Kretovics. M.A. (2011). Business practices in higher education: A guide for todays
administrators. New York, NY: Routledge.
Lynch. M. (2013). Diverse conversations: Issues and trends in international higher education
financing. Diverse Issues in Higher Education. Retrieved from http://diverseeducation.
com/article/54604/