Financial literacy is an important lesson parents need to teach their children. It’s one way to set a foundation for the children to make wise decisions in life. As cryptocurrency may well be the money of the future, it’s smart to educate them on this as well. Understanding crypto concepts will help them navigate well when crypto becomes widely adopted.
It will be difficult to teach younger children about crypto, but you can start coaching them about the value of money through lessons on earning, losing, and working for money. A five-year-old can understand how money works. Parents can give their children a weekly allowance. If they want to earn more, they would have to complete chores. Make it clear how much they are going to receive for each chore. Explain to them they can also receive deductions if they, for example, misbehave. Encourage them to use their own money when they want something that’s not a necessity. This is one way to teach them to save and to shop wisely. They become more discerning when they are spending their own money.
When your children ask direct questions about crypto, then you know it’s the right time to instruct them about crypto. If you’re not into crypto yet, it’s also time for you to learn the basics. You’ll be able to explain better if you have an understanding of the concept. Here are some ways to describe fundamental crypto concepts.
What is cryptocurrency?
It’s digital money—no cash or real-life coins. You can use it to pay for things or save them.
How can I get some?
You can buy crypto using the money you have from an exchange when you’re old enough.
How will people know which ones belong to them?
People who buy crypto have crypto wallets and these wallets have their own addresses. Whenever you buy or send crypto, these are recorded on the blockchain. A blockchain is like a book where you can write who sent or received crypto and how much.
Why do people like crypto?
Crypto can be used around the world because it’s not run by one country or one person. You can also use it anywhere on the internet. Some crypto coins became valuable after some time and made the ones who bought early rich.
How come people don’t like crypto?
The value of coins goes up and down and some people don’t like that. Others say mining for crypto is bad for the planet.
As the children grow, you can add more details. Remember to answer questions in a way that’s appropriate for their age. If you still find it challenging to simplify concepts, there are books, YouTube videos, and websites that can help them learn. Teenagers are more likely to want to get into crypto seriously. If they are still underage, you can open an account in an exchange on their behalf. Instruct them on how to research on the different types of crypto tokens, choosing wisely, maintaining privacy, earning, and investing.
Encourage them with stories about Erik Finman and Benyamin Ahmed. Eric bought $1,000 worth of Bitcoin in 2011 when he was 12 and grew his holdings to 431 BTC, worth over $4.8 billion in 2020. Benyamin is a 12-year-old who created pixelated artworks called Weird Whales and sold them as non-fungible tokens (NFTs). He made about £290,000 in 2021.
Crypto wallets are another thing you can educate your children on. Help them understand why they must have both hot and cold wallets, how to choose the right ones, and how to secure their keys. If Monero is one of their choices and they’re looking for a Monero desktop wallet, check out XMRWallet.com. It allows them to send and receive Monero instantly on the blockchain, while remaining in full control of their XMR and keys.
XMRWallet also provides a totally open-source app and allows them to use Monero without requiring them to download any software. It has multiple language support. Best of all, it’s completely free, including importing previous transactions. Registration is not required, and it’s easy to use. Create your account now and take advantage of everything XMRWallet offers. Using XMRWallet for your Monero coins will expand the privacy and anonymity that Monero provides.