Crypto Parenting in the New Era
Photo by David McBee from Pexels

Crypto Parenting in the New Era


Given that cryptocurrencies are increasingly integrated into our daily lives, the usual practice of getting a child to divide his money into 3 money jars labelled Save, Spend and Share seems a bit antiquated. No doubt, cash will still play an important role in society, but besides teaching our children to handle fiat wisely, modern parents will also need to impart healthy attitudes towards crypto. How can they do so? I don’t claim to be an expert but here are my thoughts.

Earn Crypto

I think the most empowering thing about crypto is how it has harnessed technology to bring about an abundance of money-making opportunities for the masses. For instance, I now use the Brave browser as it enables me to earn BAT tokens while I’m surfing the Net, going about my usual business. No doubt, the amount of BAT tokens given is rather insignificant these days. However, I think it’s a fuss-free way to introduce the idea of passive income to children. I get a kick of converting BAT to ETH and then depositing this ETH into my crypto account. 

Coinbase also has a great system in which it will occasionally release educational contents about emerging cryptocurrencies and reward its users with free crypto for such currencies if they answer quiz questions correctly. And of course, who can forget about Publish0x who rewards its users simply by reading articles and tipping the authors? 

Now I don't think I will set up Coinbase and Publish0x accounts for my child while he is still in elementary school. Nonetheless, attitudes are caught rather than taught. When my son sees what I am doing on these two platforms, he will gradually pick up the ropes about earning crypto online for minimal effort.

Save Crypto

What should I do with the crypto I earn online? Well, it's crucial that we pay ourselves first, regardless of whether it is fiat or crypto. While I hope to capitalize on market trends to buy low and sell high, I also want to remain grounded and stay true to my investing strategy instead of obsessively chasing after high returns. Hence, part of my strategy is to park some digital assets in either crypto exchanges or crypto-lending platforms. 

I think that before I even agonize about which company to save my digital assets with, choosing my preferred crypto is a big headache. Do I convert my BAT/AMPI/IFARM tokens to BTC or ETH because I want to pursue the "high risk, high reward" strategy or do I convert them to stablecoins because they are pegged to a national currency and are deemed as less volatile? But stablecoins may not be exactly free of controversy. For instance, the claim that each USDT was backed 100% by US dollars that Tether held in its reserves was subsequently shown to be false. 

What cryptocurrencies should I choose for my portfolio then? I need to do my due diligence, discern facts from authoritative sources, make intentional decisions decisively and not fall prey to FOMO. I will also need to impart such analytical and critical thinking skills to my son. 

Next, the question of whether I should earn my interest by depositing my crypto with an exchange or with a lending platform. I cannot get my son to just examine the various interest rates. I will need to get him to probe deeper by thinking of issues like withdrawal fees, ease of conversion into Singapore dollars (we are not from the US.) and even regulatory requirements from the Monetary Avenue of Singapore. Personally, I hope to get familiarized with this wide array of avenues myself so that I can guide him to make sound and informed decisions. 

Spend Crypto

Currently, there are 10 Bitcoin ATMs in Singapore. I'm sure with the gaining prominence of Bitcoin and other cryptocurrencies in Singapore, this figure is set to increase. 

Hence, if my boy can readily withdraw crypto in future, I will need to inculcate healthy spending habits. The scary thing about crypto is that because it is an intangible digital asset, one won't feel the pain so acutely if he chooses to pay with crypto as compared to paying with cash. I'm sure we have heard of horror stories of young impressionable children who blew the root off in regards to their parent's credit card as they indulged themselves in in-app purchases. I won't want my boy to fall for this trap!

Even if my son happens to have excellent spending habits, there are other things to take into account. Given that ATM withdrawal of Bitcoin is not the norm yet, the transaction fee associated with an ATM withdrawal could amount to a significant sum. Hence, instead of just thinking of the withdrawal sum, I will need to train my son to think in terms of withdrawal sum PLUS transaction fee. 

Are you already teaching your child(ren) about crypto? Any best practices to share? Please let me know in the comments below!

 

How do you rate this article?


1

0

diaperfinancingfund
diaperfinancingfund

budding investor


diaperfinancingfund
diaperfinancingfund

Blogging about crypto as I learn

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.