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Nearly Half of Crypto-Owning US Parents Invest in Kids’ Future, Dream of Big Gains

Last Updated March 23, 2024 1:12 PM
Teuta Franjkovic
Last Updated March 23, 2024 1:12 PM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • Some parents see crypto as a legacy investment.
  • There is a bullish outlook on crypto as future currency.
  • Parents are prioritizing crypto education.

As parents work towards securing their children’s futures, from setting aside college funds to saving for a first home payment, investment choices are crucial.

All of this prompts one question. How many of today’s cryptocurrency investments will eventually land in the hands of future generations?

Crypto as Potential Legacy – Motivation and Outlook

With cryptocurrency making frequent appearances in financial news and becoming a growing part of investment portfolios across the United States, one wonders whether parents view crypto investments as a was to fortify their children’s financial well-being.

To shed light on these queries, CouponBirds shared its survey  of 1,046 parents with CCN. The survey aimed to uncover the motivation behind parents potential investments in cryptocurrency. It also examined why they invested in such a volatile market, and their outlook on how cryptocurrency could secure their children’s financial futures.

This study seeks to understand how parents are navigating the complex landscape of modern investment options. It also tries to explain what this could mean for the financial legacy they intend to leave behind.

Parents Flock to Crypto, Earmarking Digital Assets for Kids’ Futures

In a revelation about the intersection of cryptocurrency and family financial planning, a significant 45.2% of U.S. parents engaged in the cryptocurrency market have earmarked a portion of their digital assets for their children’s futures. A further 40.6% want to venture into crypto investments with their children in mind, but have not made their move. The primary motivation driving these investments is a belief in long-term cryptocurrency price growth, cited by 52.6% of parents.

However, the rationale extends beyond mere speculation on price increases. A total of 33.3% invest for educational purposes, while 30.7% seeking a hedge against the debasement of traditional currency. Remarkably, a vast majority (81.4%) of parents are convinced cryptocurrencies will gain more value over the next decade. Meanwhile, 82.3% adopt a ‘set and forget’ strategy, planning to hold these investments until their children are ready to take over.

The landscape of American investment is witnessing a notable shift. Recent studies indicate that more than 40% of the population now holds at least one form of cryptocurrency. This extends into the realm of parental investments, with a considerable segment of crypto-owning parents  (45.6%) purchasing digital currencies with their children’s financial futures in mind. Furthermore, an additional 40.6% could join this group in the coming years.

Crypto Booms in the Nursery: Parents Banking on Crypto for Children

In the evolving landscape of financial investments, the sentiment towards cryptocurrencies among parents, whether they have invested in the asset class or not, is telling of the expected shifts in future monetary systems. CouponBirds survey  revealed a profound belief in the long-term viability of crypto. Indeed, it is seen as not only as an investment but as a practical medium for transactions.

Despite data from the US Federal Reserve  showing only 2% of people use cryptocurrency for purchasing goods and services, 79% of respondents are convinced that today’s children will embrace cryptocurrencies as a mainstream form of currency.

This perspective is further reinforced by the finding that 37.5% of parents view cryptocurrency as the most advantageous long-term investment for their children. This surpasses trust placed in traditional savings accounts, foreign currencies, and even stock and index funds. The trend underscores a growing inclination among parents to favor the potential and long-term prospects of cryptocurrencies over more conventional investment vehicles.

Advocating for School Curriculum Integration

A significant portion of parents are directly investing in cryptocurrency with the intention of educating their children. Among parents who have invested on behalf of their children, over one-third (33.3%) are specifically doing so to impart knowledge about cryptocurrencies. Moreover, more than eight in ten (81.2%) of all surveyed parents advocate for integrating crypto education into school curriculums.

Recognizing the importance of financial literacy for young individuals, it’s notable that Americans incurred losses of $415 billion in 2020 due to financial mismanagement, as reported by the National Financial Educators Council. Introducing children to cryptocurrencies as part of their financial education could, potentially, contribute to their financial acumen and decision-making skills in the future.

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