FAFSA remains in the news – the Education Department’s neglecting to adjust for inflation will reduce student aid eligibility unless a huge fix is put in place, rapidly. But the number one finance news story of the moment has to do with cryptocurrency. Is making Bitcoin more accessible to the common investor a good idea? Your Weekend Read has some insight… 

Cryptocurrency

• On Wednesday the SEC approved rules to allow Bitcoin ETFs for the first time, and by Thursday evening, $4.6 billion in Bitcoin ETFs had already been traded, says Reuters. 
• TIME does a nice job of laying out how the ETFs will work, how they differ from straight up Bitcoin, and what to know about Bitcoin ETF risk (Spoiler: There’s still a lot of risk!)

Why this matters: If your students have walked away with an overly simplistic (and incorrect) view that “Hey, funds are safe! Funds aren’t risky,” investing in these new Bitcoin ETFs could lead to some rude awakenings and lost dollars, as crypto prices remain volatile.  

Paying for College

• NPR gives you the option of listening to a 3-minute audio clip or reading a thorough explanation of how the Education Department failed to adjust the new FAFSA form to account for high inflation over the last few years. 
• Mark Kantrowitz on the College Investor ran some numbers and demonstrates how the error could impact students from high-, middle-, and low-income households differently. 

Why this matters: The failure to account for inflation could negatively impact Pell Grant eligibility of students from low-income households and reduce student aid dollar amounts to students from higher earning households. On the flipside, if the Education Department tries to fix the mistake now, they risk further complicating an already bumpy rollout. 

You can also learn more: NGPF has a lot of Virtual PD – including Speaker Series – on the topic of FAFSA and paying for college. 

Inflation

• Speaking of inflation, this post from NPR on Instagram caught my eye to answer the question “If inflation is cooling, why do things still feel so expensive?” In just 5 short slides it covers the difference between disinflation and deflation, why the Fed aims for disinflation, and why deflation may not be so great.
  

Why this matters: Maybe you’re an econ teacher and this can hook your students or review concepts you’ve already taught. Or, maybe your course is light on econ but this is simple enough for most to grasp.

Even better: If you’re not an Instagram fan or need more details, you can find a Weekend Edition audio clip or written article, too. 

About the Author

Jessica Endlich

When I started working at Next Gen Personal Finance, it's as though my undergraduate degree in finance, followed by ten years as an educator in an NYC public high school, suddenly all made sense.