How To Teach Your Kids About Finances By Using Bitcoin?
It is important to give your kids a foundation about money very early on. This foundation will create a healthy relationship with money and help them avoid a lot of financial problems later on that often come with being irresponsible. In this article, we would indicate how you can teach your kids using Bitcoin as a tool.
How To Teach Your Kids About Finances By Using Bitcoin?
With how banks and financial institutions operate these days, it pays to go a step further into your child’s education on financials and teach them about Bitcoin. Many of the broader aspects of the technology will likely go over their heads, but if you use the crypto currency as a teaching tool then they will slowly come around. Then, later you can teach them about investing and other more complicated lessons about how money and crypto currency works.
1) Teach about restraint
The trickiest thing about teaching kids about money these days is that there are few times we use physical money.
Often times, it’s all electronically so it is easy to forget that it is a real thing. Overspending and not appreciating the real value of money comes with the territory. With Bitcoin, it can be even more of a challenge since there is never a time when you can hold a Bitcoin in your hand and use it to buy things in person.
This is a good opportunity to teach them the concept of how it is virtual as later on there will be even less physical money being used.
Teach them about a Bitcoin mobile wallet and how it works in a way that you might have taught them about piggy banks in previous generations.
This way they can put the idea that they are their own bank into practice.
2) Safety and security
There is a risk of losing money through fraud and being hacked very easily these days. You can make sure that they understand this by using Bitcoin as an example of how much safer it is than having their money in a regular bank and using a traditional debit card.
There is a risk of course, as if they lose the keys to their wallet, there is little chance of getting their money back at some point. That is the worst case scenario of course.
What they will gain from that is the feeling of responsibility for their money to keep it safe. But they will also learn a lesson about how there are people out there that can take their money if they aren’t careful.
3) Saving and growing
The way Bitcoin works offers two different lessons when it comes to saving. Kids will get a thrill about seeing how their wallet can grow when they transfer money to it regularly. Just like a piggy bank, when they get birthday money, or from doing chores, they can send a transfer to their wallet and watch it grow.
In addition to that, they have a unique opportunity to see how it can grow when the value of the Bitcoin increases. With a traditional bank account, interest on deposits is so low that the only way to watch the savings grow is to add money to it. When there is a bull market, the Bitcoin will grow on its own.
If you enjoyed this article, share it with your friends and colleagues through Facebook and Twitter.
Team – Myinvestmentideas
How To Teach Your Kids About Finances By Using Bitcoin
- 5 Mutual Funds with Consistent Positive Returns in 9 out of 12 Months - June 8, 2023
- How to Use Credit Cards to Improve Credit Score? - June 7, 2023
- 11 Genuine Ways to Make Money in Free Time (Online + Offline) - June 5, 2023