The Future of Financial Literacy Education Must Include Crypto

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Real Clear Education

One revelation of this political cycle is that cryptocurrency is here to stay. Both former President Trump and Vice President Harris are accepting crypto donations for their campaigns and, according to reports, the crypto industry has dominated corporate election spending. Still, many Americans feel lost when it comes to crypto and how it works, with many among the older generations still brushing it off as a financial fad. It is, after all, tailored for the next generation of investors, right?  Therein lies the problem.

The idea of decentralized, blockchain-based assets and digital wallets is attracting young people at an impressive rate. According to recent data, more than 57 percent of crypto owners are under the age of 35. While a youthful market can be exciting, we as parents need to ensure we are educating our kids about cryptocurrency so they can navigate this new financial realm safely and confidently.

Cryptocurrency is more accessible than ever. From YouTube cartoons aimed at young kids to social media campaigns on platforms like X, Instagram, and Discord highlighting the latest crypto investment trends and educational content, there is a wealth of crypto resources readily available. While information can be helpful, it can also be problematic. The sheer volume of content, combined with a lack of oversight in the crypto space, makes it incredibly challenging to distinguish between legitimate advice and outright scams.

Crypto undoubtedly has a place in the future of finance, but it remains largely unregulated, opening up significant risks for young and inexperienced investors. What’s worse, we already know the digital currency landscape is rife with scams, and bad actors are quick to exploit those who don’t know what to look out for.

In 2023 alone, Americans lost more than $4.6 billion to fake investment scams – more than any other scam category and up 21% from the previous year. Even the most financially savvy individuals can fall victim to scams. Take Sam Bankman-Fried’s notorious crypto exchange, FTX, which defrauded investors out of billions. Bankman-Fried misled users into believing that FTX was a secure platform for trading digital assets while using customer funds for high-risk investments. When FTX collapsed in November 2022, it left customers with billions in losses. The damage to many individuals’ finances is irreversible.