In addition to financial education, real-life practice is necessary to help children retain what they have learned. Only the combination of these two can guarantee that children will grow up to be money-savvy adults.
Kids, investment, and cryptocurrency:
When it comes to engaging kids financially, they may not always be interested in Grandpa’s investments. In 2017 Cryptocurrency offers a novel solution for teaching children how to invest, which today’s digital youth may find quite intriguing.
Kids are already familiar with digital payments using tokens for online game purchases. This makes it easier to introduce cryptocurrency to them, also called “virtual currency”. Unlike many adults, kids have no fear trying this out and find it cool.
What makes it more interesting for kids and parents is the cost involved compared to a normal stock purchase. Normal stock purchase usually comes with large fees and minimum purchase requirements. With cryptocurrencies priced to the eighth decimal, fractions of a single coin can be purchased. And the trading fees are minuscule.
example .0001 bitcoin (less than 5 cents) is a common amount that kids can start with.
Governments, Financial literacy and cryptocurrency:
Russia, for example, is working hard to include cryptocurrency in the country’s strategy to increase the financial literacy of its young population. Thus Russian children are increasingly investing in cryptocurrencies.
At an all-Russian competition called “Digital Economy: Generation Z”, organized by the government, Russian children compete, answering questions about cryptocurrencies, chatbots, blockchains, and biometrics. The monthly event is held in Moscow’s “Horoshkol” high school gymnasium, which was built with funds from the head of Sberbank, Herman Gref, who is also a judge for the competition.
Cryptocurrency, the perfect playground for kids
The cryptocurrency industry is already gearing up for its inevitable adoption by today’s youth. Several currencies have taken specific steps to help kids enter the realm of digital currency. Since these cryptocurrencies can be divided into such small units, kids can start saving even if it is only a few pennies worth at a time.
Here are 2 web-based wallets designed for kids :
- PiggyCoin is a cryptocurrency designed for kids. The wallet is called a piggybank, there are games to play, and ways to get free coins. The fact that Piggycoin is a real, working cryptocurrency also means that it can be traded.
- CRISP For Kids by DNotes introduced the first ‘Cryptocurrency Investment Savings Plan’ in the world. Its purpose is to encourage children to develop good savings habits and to show them the value of both early and long-term investing. CRISP For Kids operates through CryptoMoms, an online learning center with a mission to encourage women’s participation in cryptocurrency.
Having an extremely low-cost base like cryptocurrency, allows children to make mistakes without suffering financially. They can learn some very valuable lessons through the experience of picking their own investments. This new concept also helps parents prepare their children for a cashless society. These children will begin growing and tracking their investments through the ups and downs of the market, and be on their way to join the ranks of the financially educated.