As a parent, you should spend time teaching your kids about the importance of money and how to spend it wisely. It may not be easy to teach kids how to be financially responsible from an early age, but you can commit if you adhere to a very strict process. In a world of reckless lending, financial bankruptcy, and government bailouts, it all comes down to the internet’s most famous currency- Bitcoin.
Talking to your kids about bitcoin can teach them valuable lessons about money management. In the long-run, this could help them manage their money with a lot more responsibility. Sadly, cryptocurrency is a domain that only the savviest can understand. However, 10 years from now today’s 15-year olds will know everything there is about trading bitcoin. To make sure they make sensible choices, you should talk to them about bitcoin as soon as possible.
Digital money has no barriers
When it comes to cryptocurrency like bitcoin, one of the greatest benefits is that there are no psychological barriers. Even though most of today’s transactions are done electronically, parents should still instill that sense of truthfulness. Bitcoin can be converted into real money, although it can’t be physically touched.
Generation Z will grow up aware of what bitcoin is. At some point, they’ll develop the capacity to understand what virtual money is, and how it can be used as fiat money. The idea of virtual cash holds in a virtual wallet is not the most concerning factor. What’s important is that kids learn that trading bitcoin is risky. Focus on teaching your kids the fundamentals of money management, debt avoidance, and personality financial responsibility.
Bitcoin can actually teach personal responsibility
One of bitcoin’s most famous logos – “be your own bank” – is reason enough to go digital on your finances; and teach your kids about it from a young age. However, with great financial liberty comes great responsibility. When you are in full control of your money, you are also in charge of safeguarding it. With conventional bank accounts, if you lose a password or username, it’s rather easy to regain access. But if you lose the key to your bitcoin wallet, chances to recover it are slim.
On the bright side, this is actually a good thing because you can use the opportunity to teach kids about taking responsibility. Talk to them about the importance of is careful and paying close attention to the actions they take. Emphasize on the benefits of a digital financial system, but make sure to highlight that the decisions they make are fundamental.
Bitcoin can stimulate kids to avoid debt by saving money
Debt is the all-in-one word that sums up today’s financial crisis. The conventional financial system is broken, but successful because it depends on a supply called “the debt of the people”. The average consumer is directly affected a wrong debt mentality. Many vendors allow you to buy things now, but pay for them later. What if you can’t?
Inevitably, while your kids will grow up they’ll learn at some point that they can buy things without paying for them on the spot. They will overlook the consequences involved because they’re driven by instinct. With bitcoin, the rules of the financial game change. To begin with, bitcoin is not debt. It is a reliable, stable source of money that doesn’t depend on any shaky third party, like a bank.
Because of bitcoin’s deflationary nature, people are encouraged to save their coins rather than spend or trade them at a lower price. Talk to your kids about the importance of saving bitcoins. Since the overall value of the digital currency is expected to grow because of a huge demand, toddlers might get excited by the idea that saving will eventually pay off. Rather than support a broken financial system and be unsure that your kids will grow up financially independent, it’s best to take precaution measures ahead of time.
Make sure their private tutor teaches them about the importance of money as well. The more they can understand why it pays off to save, the better chances you have for your kids to grow up responsible and independent.