Inflation has made its way into the new FAFSA calculations at long last – or, at least, they’re saying it will… But first, do your Gen Z students care more about loud budgeting or soft saving? 

Money Philosophies 

• The FIRE Movement a few years back was all about sacrificing now, but Soft Saving runs counter to that – make sure you’re feeling good about the present, even if it means you’re not saving as much for the future. CNET Money explains the concept.
• Loud Budgeting is making the rounds on social media and is explained in this WishTV news story – it’s about communicating frankly with friends and family regarding your budget boundaries.

Why this matters: Your Gen Z students likely catch a lot of financial tips on TikTok or Instagram, so impress them with your knowledge of the popular lingo. But also, start a meaningful class discussion or debate on the merits of each strategy! 

ICYMI: Yanely did a whole FinCap Friday on the latter – Budgeting Gets Loud.

Budgeting

• The Joint Center for Housing Studies (JCHS) of Harvard University released a report finding that half of U.S. renters are paying over 30% of their income for housing, split between rent and utilities. And nearly 25% of renters pay more than 50% of their income to housing costs! NPR summarizes the findings while the report is also available straight from JCHS. 

Why this matters: If we’re teaching students the adage that housing shouldn’t be more than a third of your budget and that’s not truly feasible, something’s got to change. Maybe a good time for Budgeting with Roommates? 

Paying for College

• Will they? Won’t they? When it launched earlier this year, the new FAFSA was missing inflation adjustments. Now, the Education Department is confirming they will factor inflation in time for this coming year’s aid. Read about the FAFSA back-and-forth through CNN or listen through NPR.

Why it matters: $1.8 billion in student aid is at stake for next year’s college students. 

Entrepreneurship

As we approach Mardi Gras, consider sharing this quick little Washington Post Instagram spotlight on How a Vietnamese Bakery Built a King Cake Empire in New Orleans.

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.