Students are now turning to crypto to bridge the financial gap that comes with schooling. It is not a surprise that the cost of schooling has tremendously gone higher over the years. This means that now more than ever, tons of students are graduating with tens of thousands of dollars in student debt. Somehow, even with the huge loans students take out to pay for schooling, it doesn’t quite cover them for everything.
Basic things like food and rent have become big issues for students. And even after taking huge amounts of student loans, they find themselves with financial needs that haven’t been filled yet. This force them to look for other funding sources. Part-time jobs are usually the go-to for it, but with the pandemic, the part-time job market has became drastically unstable. Students are now left to rely on their parents as a funding source, but these parents have also been affected largely by the pandemic and so their incomes have been affected.
Students have been left with nary a choice to fill up their financial gap with. And that is when crypto entered the picture. The pandemic and school closures left a lot of students with time on their hands as countries went into weeks lockdown. Inability to work coupled with dwindling savings made a lot of students to look towards other means of income to supplement their loans. A report has said that students loans usually cover about 58% of their expenses.
Students are increasingly looking for other ways to make money in order to get by in university. Data shows that the number of students turning to crypto to source funding has tripled in just one year. The number is up from the 2% who said they were investing in crypto in 2020 to 6% this year.
We all know that students are generally unprepared when it comes to finances, so even though more students are investing in crypto, they are not doing their due diligence before investing. This, of course, led to mistakes in investing, which in turn led to money being lost in the market. Concerns have been raised about students investing in crypto without fully understanding the risks and strategies to implement.
This is what called for the need for a proper financial education and information regarding cryptocurrency in order to make sure that students are making the best decisions when it comes to investing in the virtual currencies.