Theoretical Analysis of the Basic Financial Education Funding Allocation Mechanism for Compensating the Costs of Higher Education Institutions

DOI: https://doi.org/10.62517/jhet.202515504

Author(s)

Shuqing Lv1,*, Guowang Yu2

Affiliation(s)

1Financial Department, North China University of Technology, Beijing, China 2School of Economic Management, North China University of Technology, Beijing, China *Corresponding Author

Abstract

Based on the practical needs of higher education cost-sharing and improving the efficiency of financial fund allocation, this paper conducts a theoretical analysis of the financial education funding allocation mechanism in higher education institutions. It aims to construct a new allocation framework based on cost compensation, providing a theoretical basis for optimizing fund distribution. The research adopts methods including conceptual definition, interdisciplinary theoretical reference, and comparative analysis to systematically explain core concepts such as higher education costs and the allocation of financial education funds. It establishes a theoretical foundation from dimensions including the organizational nature of higher education institutions, product characteristics, the principle of cost-sharing, and the relationship between equity and efficiency. The research results indicate that the funding allocation mechanism centered on “per-student cost” is more rational compared to the traditional “per-student expenditure”. It demonstrates significant advantages in terms of authenticity, comprehensiveness, fairness, and policy guidance, enabling a more comprehensive reflection of resource consumption and promoting the optimization of cost management in higher education institutions. The conclusion states that promoting the shift in the financial funding allocation for higher education institutions from an “input-oriented” approach to a “cost compensation-oriented” approach is an effective path for enhancing the efficiency of financial fund usage and promoting equity and high-quality development in higher education.

Keywords

Higher Education Institutions; Cost Compensation; Educational Funding; Allocation Mechanism

References

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