Crypto can help teach kids about personal finance

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Financial literacy means understanding how skills such as money management, budgeting, and investing can be used to make effective financial decisions. The earlier these skills are adopted in life, the greater the opportunities for wealth accumulation. Unfortunately, the education system is sorely lacking in teaching the financial literacy and application skills we need to succeed, and we are still learning how this affects the economy on a larger scale.

Switching service providers and deciding on the best mortgage rates – those are the kinds of decisions most people will make. But not fully understanding how it all works can be costly, according to recent research. The National Financial Educators Council (NFEC) found that, on average, American adults estimated they lost $1,634 in 2020 due to a lack of money management skills. Extrapolating these numbers, lack of knowledge cost US citizens an estimated $415 billion in 2020.

Given that in 2018, respondents estimated an average loss of $1,230 for that calendar year, this suggests that a growing number of people are potentially missing out on building a financially stable future. With Web3 and crypto becoming more and more popular with future generations, teaching children the right skills in finance and financial application becomes even more important.

Learn financial literacy with crypto

Many hope that the rise of digital currencies may eventually help solve the growing problem of money mismanagement at the individual and institutional level. Thanks to the flexibility offered by blockchain technology, many different use cases can be adopted to achieve this. One such use case is teaching kids about finance and taking financial responsibility early on.

Banano (BAN) is a freely distributed “potassium-rich” cryptocurrency project launched in 2018, running on the Directed Acyclic Graph (DAG) architecture. The network is user-friendly, instant, and sustainable, making it the perfect environment to learn about crypto and finance.

The main objective of the project is to provide an accessible and educational route to enter the complex world of digital assets. They provide intuitive tools, informative workshops and helpful guides in an easy-to-understand way so that financial experience and massive computing power are not required.

Banano has many programs that have evolved from its ecosystem, one of which aims to solve and improve the problem of financial illiteracy. With the Banano in the Classroom program, teachers can leverage blockchain technology to teach students financial and application literacy skills, problem-solving skills, and individual and group responsibility through cryptography and rewards.

One of Banano in the Classroom’s success stories involves Canadian teacher Mr. G who uses the program as a point system to reward students in his class for respecting their environment, completing certain tasks and staying focused. Mr. G distributes the banana throughout the week and “redeems” it in time to redistribute the rewards the following week.

To save or not to save?

In addition to feeling rewarded, students can spend their hard-earned bananas at MG’s banana shop Teacher accepts BAN tokens for pizza, extra time for outside play, games, toys, school supplies, computer time and much more. This rewards system introduces children to the concept of earning, saving and spending.

It also teaches conflict resolution, as large group purchases must be made with 100% group approval. Students should discuss the possibilities and eventually come to an agreement. For example, does everyone want candy today, or should they save up and combine their funds for pizza next week?

Teaching children about financial responsibility touches many other areas of development as well. MG says that before he implemented the program in 2019, he was burnt out due to bad behavior in his class. Since then, things have reportedly improved a lot, as the Banano community-run news site Daily Peel quoted:

“Banano in the Classroom was a huge success and dramatically improved behavior, overall classroom cleanliness and class morale. Students are super excited to cash out their $BAN for weekly prizes. Some groups will even save their banana from week to week to save for better prizes. It helps tie together many of the financial literacy skills that I wish I had learned when I was nine years old.

Banano aims to eliminate the high entry barriers that plague most other crypto projects. Easy-to-use crypto platform provides the infrastructure for people of all ages to learn about personal finance, group economics, asset management, and other valuable literacy skills financial and application, making it an impactful use case for crypto.

Disclaimer. Cointelegraph does not endorse any content or product on this page. Although we aim to provide you with all important information we may obtain, readers should do their own research before taking any action related to the company and take full responsibility for their decisions, and this article cannot no longer be considered as investment advice.

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