In previous articles, we’ve touched on crypto in the education sector, looking into the future of how technology will continue to evolve eLearners. But, going even deeper into the topic, it’s important to understand how crypto can be the future of financial literacy.
In this article, we’ll focus on why it's important for kids to be financially literate. We will dive into the benefits of teaching kids about cryptocurrency and share ways for them to get involved, including some different options for teaching kids about cryptocurrency and finance.
Understanding Crypto
Before you begin to understand the value in teaching kids about crypto, you should have a better knowledge of it yourself.
Crypto is the abbreviation for the word cryptocurrency, which represents a form of digital, decentralized currency. Crypto got its name from the security it relies on, cryptography.
Value of Crypto Today
According to CoinMarketCap, the current market capitalization of the 18,847+ digital currencies is currently valued at nearly $2 trillion. It’s clear to see the value in understanding this popular currency as it becomes an integral part of our market today and in the future.
Most Popular Crypto
Despite there being over 18,000 different digital currencies today, the most popular, by far, is Bitcoin (BTCUSD). Bitcoin was originally released in January 2009, and is now valued at over $40,000 per coin.
Bitcoin quickly gained traction, because, unlike other digital currencies of the time, it introduced new safety measures. While other products on the market were relatively easy to replicate, blockchain technology released with Bitcoin helped ensure that this crypto could not be double-spent or counterfeited.
Teaching Kids About Crypto
There’s a lot to learn about crypto, which means there’s a lot that can go into educating children about digital currency. Here are a few key points to consider when teaching kids about crypto.
Crypto Isn’t a Game
One of the most important aspects of crypto that should be instilled in all kids is the understanding that it is not a video game. Kids are familiar with different gamification aspects, which can include virtual currencies. Crypto needs to be defined as something separate from this. At ryco, we recommend that you start an open discussion with your kid about how crypto is a legitimate currency with many real-life uses. One way to reinforce this concept is to look for examples of crypto being used to purchase items in real life. For example, grocery stores like Whole Foods accepts crypto as a form of payment at checkout!
Children who play online games with their own currency aren’t losing real money. Alternatively, when it comes to investments made with crypto, they do run the risk of generating actual losses.
Still, you can consider personalized learning and gamification when it comes to educating kids about crypto. This idea can be especially beneficial to children who need practice with a virtual currency before moving on to a more serious format dealing with real crypto exchanges.
Crypto Is Volatile
As cryptocurrency runs with the market, it is bound to have its own set of fluctuating ups and downs. It can be considered both a positive and negative aspect, but ultimately, cryptocurrency is volatile.
For example, let's say you have $500 in your crypto account. You may have more in your account if the value increases. However, it can just as easily dip in value to $10 or even lower. When this happens, there’s little you can do except hope for the value to rise again while waiting to recover from your lost funds.
Explore this volatility by challenging your kid to do some research! Encourage your student to use a search engine to track prices of Bitcoin or another cryptocurrency over time. Start a discussion about how prices change month to month and year to year.
Crypto Is Safer
One of the benefits of teaching kids about crypto is its security. Because you don't need to provide personal information to a vendor, cryptocurrency can be a safer currency for children to access and manage. Ultimately, working with crypto can lessen the chances of identity theft or fraud in children while still teaching them to be financially independent and educated.
Prompt your kid to think about why it might be important to protect personal information. Share some age-appropriate examples of how personal information could be used to commit identity fraud.
Crypto Is Popular
As previously mentioned, cryptocurrencies are continuing to gain traction. Crypto is helpful because it can be used like more traditional forms of currency, like the USD. However, it stands apart. Part of the reason crypto continues to grow in popularity is that it's strictly digital.
Platforms like Bitrefill provide one of the easiest ways to spend cryptocurrency at retailers and vendors through gift cards purchased through their services.
You’ll continue to see more and more retailers accepting cryptocurrencies as a form of payment. Some of the most popular retailers that currently accept crypto include:
Best Buy
Burger King
Live Nation Entertainment
Starbucks
Target
Ticketmaster.com
Yum! Brands
Challenge your kid to think of 3 to 5 ideas of how crypto could be useful in their own lives. Could your kid start accepting crypto payments for mowing a neighbor’s lawn? Or could they use crypto as a way to learn about investing?
How to Set Up a Crypto Account
Of course, once you know the background of crypto as well as teach the crucial elements to kids, you have to walk them through how to set up a crypto account.
Here are a few critical steps in setting up a crypto account, for starters.
Create a crypto account where your funds are stored
Buy crypto with traditional currency using debit cards or bank accounts
Setting up an account is simple enough. Check out Coinbase for additional help. This platform offers many currencies and payment methods and is a cryptocurrency exchange.
ryco.io and Crypto
When it comes to content development, ryco.io is known for being an industry leader. In fact, we pride ourselves on staying ahead of the game regarding finding the latest information and valuable lessons to integrate into our courses.
That’s why it should come as no surprise that ryco.io is partnering with leaders in the crypto industry to produce cryptocurrency content for middle schoolers. Stay tuned to see what ryco.io has in store for the crypto space!
Final Thoughts
Encouraging a self-learning atmosphere that promotes student growth is a primary focus here at ryco.io. Our efforts to become pioneers in cryptocurrency education are just one of the ways we successfully take strides in terms of online educational materials that are relevant and useful in today’s environment.