Children can learn about personal finance using cryptocurrency
Financial literacy entails knowing how to use techniques like budgeting, investing, and money management to make wise financial decisions. The more possibilities there are to build money, the earlier in life these abilities can be mastered. We are still learning how this affects economics on a bigger scale, but sadly, the educational system significantly lacks teaching the financial literacy and application skills we need to succeed.
Most consumers will have to make selections like switching service providers and choosing the best mortgage rates. But recent research suggests that not completely grasping how it all works can be expensive. According to research by the National Financial Educators Council (NFEC), American people believe they will lose $1,634 on average in 2020 as a result of poor money management. By extrapolating these numbers, it may be estimated that Americans will lose $415 billion in 2020 due to ignorance.
Given that the respondents’ estimates of average losses for the year 2018 were $1,230, this means that a growing number of people may be missing out on the opportunity to establish a financially secure future. Teaching kids good money management and financial application skills are even more crucial now that Web3 and cryptocurrency are getting more and more popular among the next generation.
Financial literacy training with cryptocurrency
Many people believe that the emergence of digital currencies would eventually contribute to the solution of the rising issue of financial mismanagement at both the individual and institutional levels. Numerous other use cases can be used to do this because of the flexibility that blockchain technology provides. One of these applications is encouraging young people to develop sound financial habits.
A “salt” cryptocurrency project called Banano (BAN) was introduced in 2018 and operates on the Directed Acyclic Graph (DAG) architecture. The network is immediate, free, and sustainable, making it the perfect setting for learning about money and coins.
The project’s main goal is to offer a user-friendly and informative entry point into the complex world of digital assets. They offer user-friendly tools, educational courses, and clear guidance in a way that does not require extensive computational power or financial expertise.
One of the numerous projects developed by Banano from its ecosystem is to address and resolve the problem of financial illiteracy. Through the program Banano in the Classroom, educators may use blockchain technology to help students develop their problem-solving abilities, financial literacy, and sense of accountability in both individual and group settings.
One success story of Banano in the Classroom involves the Canadian teacher Mr. G, who uses the program as a point system to commend his students for being considerate of others, doing assigned work, and maintaining their attention. Throughout the week, Mr. G distributes Banano before “buying” it back just in time to cycle prizes out once more the next week.
Should I save or not save
Students can spend their hard-earned Banano in Mr. G’s Banano Store in addition to feeling rewarded. For pizza, additional outdoor playtime, games, toys, school materials, computer time, and a variety of other things, the instructor will collect BAN tokens. Kids are introduced to the ideas of earning, saving, and spending through this incentive system.
Due to the need that all significant group purchases to receive the unanimous agreement, it also teaches conflict resolution. The kids must deliberate the options and ultimately reach a decision. For instance, should everyone save up and pool their money for pizza the following week, or do they all want one piece of candy today?
Numerous additional developmental areas are impacted by teaching kids about money management. According to Mr. G., he was worn out before starting the program in 2019 because of poor behavior in his class. According to reports, after then, things have significantly improved, according to the Banano community-curated news website Daily Peel:
“Banano in the Classroom has been a major success and has greatly enhanced classroom morale, cleanliness, and discipline. When they can exchange their $BAN for weekly gifts, the students are ecstatic. Some teams even store their bananas week after week to accumulate funds for higher prizes. Many of the financial literacy skills that I wish I had learned when I was nine years old are connected in this way”.
Banano intends to do away with the substantial entry barriers that most other cryptocurrency projects experience. It is an important use case for cryptocurrency since the user-friendly crypto platform provides the foundation for individuals of all ages to learn about personal finance, group economics, asset management, and other crucial financial literacy and application skills.
How to cut your cryptocurrency tax burden before the year is over
Crypto investors can now utilize Accointing’s crypto tax software to determine their net tax for all transactions made in 2022 as the year draws to a conclusion.
While most crypto investors will look back on 2022 with regret, the burdensome process of submitting crypto tax returns by the end of December still exists. Unrealized losses on cryptocurrency investments are a common concern for investors, and failing to record cryptocurrency holdings and transactions on tax returns might get North American investors in trouble with the IRS.
Accounting by Glassnode, a cryptocurrency portfolio management, and tax tool, provides a simple way to quickly import and examine all cryptocurrency transactions and fill out your cryptocurrency taxes with just a few clicks. Also, its tax loss harvesting feature aids investors in reducing their tax liabilities.
How do I introduce cryptocurrency to children?
Starting with the fundamentals is one of the greatest methods to teach your children about cryptocurrencies. Describe the nature of money and its operations. You can also discuss how bitcoin is comparable to other forms of investing, such as stocks and bonds. Analogies are another tool you can utilize to aid with their comprehension.
Is crypto beneficial to students?
There are several advantages to investing in cryptocurrencies, and everyone should take full advantage of them. This new currency is available to students for long-term investments. They stand to gain much from it since by contributing additional funds, they may also boost their revenues.