The Value of Bitcoin: Teach Your Kids Financial Responsibility

As a father, I want to teach my children about money and how to use it wisely. My father taught me to be responsible, to save money, and to avoid debt whenever possible, and his education has served me well. Now I want to teach these same lessons to my children, but it is difficult in an era when even mainstream financial advisors point in the opposite direction, encouraging reckless lending and seeking government bailouts. Now let's talk about Bitcoin. Teaching our children about Bitcoin can provide them with valuable lessons about money management that will enable them to successfully manage their own money as adults, helping them avoid the current global economic problems that are plaguing us.

Children have no barriers to digital currency

     The great thing about Bitcoin for kids is that they have no mental barrier to purely digital money. While most financial transactions today are electronic, many adults still like to believe that their money is "real" - by which they mean they can touch and hold it. When they complete an online Visa credit card transaction, they still subconsciously think that physical dollars are being transferred from their bank to the merchant's bank. So the digital nature of Bitcoin provides them with a mental barrier.

     Children have no psychological barriers: their entire lives consist of the online world, so it is the "real" physical world for them. The concept of purely electronic money is not only not a problem for children, but also something they expect. Therefore, the time is ripe for young people to be exposed to Bitcoin, and the openness of Bitcoin can help parents teach them some basic virtues about money management, namely personal responsibility and debt avoidance.

Bitcoin Teaches Personal Responsibility

     One of Bitcoin’s key rallying cries is “Take charge of your own bank!” While this may sound appealing to those in the libertarian camp, it is also scary to many people because it requires a greater sense of personal responsibility. If you take charge of your own bank, then you are also responsible for maintaining your funds. If you forget the password to your online banking account, it is relatively easy to recover your money. If you lose your Bitcoin private key… you are not so lucky.
     It's a good lesson for kids in personal responsibility. Instead of relying on others to help you when you make a mistake, they learn to be more careful and responsible. They learn the advantages of a system that relies on personal responsibility; if you run your own bank, you're not relying on the fickle reputation of officials who handle your money, or the arbitrary rules of the world's banks, you're in complete control of it.

Bitcoin encourages kids to save money and avoid debt

     One word sums up the financial crisis facing the world today: Debt. Mountains of debt. Our entire financial system is built on debt, our money supply. And this debt mentality has infected even the average consumer. Want that beautiful necklace? Buy it now and don't pay for it now! Want to move to a nicer house? You can do so now and just pay it off over the next 10 years! Debt has become second nature to everyone and people don't think about the consequences of doing so.

     However, Bitcoin brings a new philosophy. First, unlike today’s government-issued currencies, Bitcoin was not created for debt. It is sound money, not dependent on the capriciousness of government officials. Second, Bitcoin’s deflationary nature encourages saving, not debt. If the value of 1 Bitcoin is expected to rise in the future, you are more likely to hold onto it rather than spend it, which prevents you from becoming a slave to debt. As the old biblical proverb says, “The borrower is a slave to the lender” (Proverbs 22:7). Who wants their children to be slaves?
     Educating your children about Bitcoin can help them stay out of debt and become financially independent adults. It’s something any parent would do for their children.