The cashless economy trend isn’t new, yet it’s gaining momentum. Using an app or a device, you can pay for groceries, gas, and other basics; it’s a very similar process to a standard payment with a credit or debit card. A game-changer has been the incorporation of digital wallets into payment services – making physical contact with a human or machine is unnecessary. Transactions are simple and available from any location. Teens are the rising stars in the digital payments space. They learn about finances from social media, websites, and online forums. The question now is: Why are youngsters going cashless? Teens prefer digital payments thanks to transaction speed and reliability. Even in smaller cities where the use of cash is predominant, more and more people turn to cashless payments.
The only way to pay for stuff in a digital society is through digital transfers, which can be realized with cryptocurrencies. The remarkable rise in cashless payments is paving the way for the ampler adoption of digital assets. Many parents have learned that kids have no interest in cash anymore. As a matter of fact, they want crypto, thinking it’s the future of investing. Children are raised in a digital, media-saturated world, so the Internet has become their second home. It’s no wonder they’re more knowledgeable about cryptocurrency than their parents. By the time these kids become teens, cryptocurrencies such as Ethereum will become mainstream and have a remarkably different reputation. That said, to buy Ethereum, you must be at least 18 years old.
Kids Have Become Experts on Crypto Through Using Online Games
Online games allow youngsters to play with friends beyond the watchful eyes of their parents. Games offer a social element, not to mention gameplay, challenges, and rewards. Speaking of which, some games have elaborate reward schemes with the potential to enhance motivation. Play-to-earn games offer tokens that have real-world value and can even be exchanged for fiat money on dedicated exchanges. Most of them are blockchain-based and built on platforms such as Ethereum. It’s possible to earn crypto for anything from pet-centered games (e.g., Hello Pets) to 3D metaverse games (Axie Infinity). If kids had it their way, their first job would be battling cartoon blobs in a pastel-hued world. Children are the experts when it comes to fintech, but not everything they know is correct.
There are no age restrictions when it comes to play-to-earn games, but kids should fully understand the consequences of gameplay and the real money being spent. Becoming a successful crypto gamer isn’t the same thing as in eSports. At times, it’s necessary to have a certain amount of cryptocurrency to get started. All games involve looting and plundering opponents, taking players on a thrilling journey. Still, the cryptocurrency industry is still evolving, therefore, requiring child safeguards; you need to prepare your children for a future where cryptocurrency and blockchain apps are a part of everyday life.
Buying Crypto for Your Kids Is an Option (If You’re Not Buying, You Should)
Children aren’t allowed to buy, sell, or trade cryptocurrencies, but they can do it with a parent or another adult’s help. To remain in compliance with KYC laws, exchanges require users to be at least 18 years old, as mentioned previously. For the sake of clarification, KYC laws are guidelines and regulations in the financial services industries that require professionals to check the identity, suitability, and risks involved with maintaining a business relationship. You can open an account for your offspring if it’s a joint account, custodial account, or another type of account that allows them to make a profit without investing directly into digital assets.
You could send crypto as a gift, but it’s rather complicated. More exactly, you would have to create a paper wallet to show the location of the digital assets on the blockchain with a unique public and private key combination. This only works for smaller amounts of crypto. To gift a hardware wallet, you must purchase a device from a wallet company, add tokens to it, wrap it and gift it. When your offspring turn 18, they can set up their own wallet and transfer the cryptocurrency you bought them. The future is uncertain, but it’s clear that new economies are emerging in the crypto space.
The Internet Can’t Replace Education About Finance and Money
Information and communication technologies offer individuals access to high-quality educational content, such as short-form videos on YouTube. Nevertheless, the proliferation of Internet content can’t replace economic education. Guidance and adult supervision are still necessary. Youngsters are familiar with cryptocurrencies, investing apps or crypto exchanges, and NFTs, but they’re oblivious to the risk associated with investing. Parents are responsible for their kids, so it’s essential to help them understand what it takes to build and maintain wealth. If you want to set your offspring up for success, help them learn about cryptocurrency investing by seeing how your investments perform and how you react to gains and losses.
Undoubtedly, it’s fantastic to see young people take an active interest in cryptocurrency and investing, but let’s not forget that they have misconceptions about how things work. The youth have the capability to learn about finance. Actually, by the age of five, they know what products they want, and by the age of nine, they can distinguish between needs and wants. Back on topic, even if the Internet helps bridge the gap, knowledge gaps persist; information matters to kids, but it’s not discussed in family circles. No matter if you’re hoping to build generational wealth or simply want your children to be smart about money, keep the lines of communication open.
Wrapping It Up
Youngsters are interested in cryptocurrency because it’s innovative and completely different from how their parents use and invest money. They no longer see the need for physical cash. Adults can manage the purchasing of the digital assets on their behalf, but children can’t gain control over them until they become of age. Cryptocurrencies can be used like money, even if they don’t have legal tender; digital assets can be purchased and held via the blockchain network. Although the concept may seem confusing and even intimidating, the underlying technology is quite simple. As a parent, you have a duty to educate your kids on all matters pertaining to money, especially when it comes to cryptocurrency.