Using Cryptocurrency To Teach Children About Money
I had to go on one of those long car rides and in that car was a parent. We started talking about teaching young children about money. As I was talking about curriculum and the role of parents, the parent stopped me. She said all you need is cryptocurrency to teach children about cryptocurrency.
I learnt from the parent that she uses a proof of stake token. The parent would stake the minimum required amount of token for its rewards. The parent explained that she used to provide her children with a weekly allowance. The problem with that was the unhealthy ‘hand-out’ mentality that came with that.
The parent lamented that the children would come to her before the week is up asking for an advance. Of course, the easy solution is to not give the child any advance. However, that solves nothing and lecturing the child is counterproductive.
Thus, the parent started teaching her children about cryptocurrency, specifically, those that would give a constant and frequent reward. The parent did consider mining as an option but found that it required too much maintenance. Thus, she chose a proof of stake coin.
The child would then trade whatever rewards from staking into the local currency. Whatever money earned would become the child’s allowance.
Lessons The Child Learnt
The parent pointed out that the child learnt some really great lessons from this experience. The first lesson learnt was on trading. Of course, we are not referring to reading moving averages but just some basic concepts. Namely, the children learnt the important lesson of buying low and selling high.
Mind you, the children had the freedom to do whatever they want. They are free to buy in a bull market or sell. If they were to make any mistakes, they would bear the consequences. This has taught the children to better manage their funds. This has also taught them to indirectly appreciate money.
The parent pointed out that since she started training her children to claim their allowance from the coin, they have started becoming more thoughtful. The parent felt that the children would stop asking for expensive items. Often they would even save up or sell their coins in a bull market for a new phone or any other items that they want.
Furthermore, the children have also started researching about how their ‘magic money printing machine’. This has allowed the parent to teach and provide the children with the tools to research about cryptocurrency.
Is This Practical?
It seems as though this is such an idealistic scenario. However, this is no different from a parent buying a child a mutual fund. The child could easily live off the dividends from the fund itself. The parent also pointed out how certain situations may require some…wisdom. In the recent bear market, its common for the children to start worrying.
This became a great teaching experience for the parent. However, the parent also had to supplement the children allowance. The parent felt rather sorry that one of her children was skipping lunch in school due to the cryptocurrency bear market.
It was not long before we arrived at our destination and I wished that the ride was longer. I wouldn’t be surprised if one day more parents would start using this method to provide their children with an allowance. The allowance in the bigger picture is secondary when you consider the potential of preparing the children for valuable lessons which would help them in the future.
Oh, and if you want to know what the coin is, do drop me a message in the comments below.