Teaching Financial Literacy in Bitcoin

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Recently, I met with a group of high school students in transition to college to ask them how we can improve our education system. One thing they mentioned was that they didn’t feel prepared for the real world. I started asking them questions to try to figure out what they meant. When we got to the topic of financial literacy, I was amazed at their lack of knowledge. They didn’t know the difference between a debit card and a credit card. One student didn’t even know he was responsible for refunding money debited from a credit card.

While some members of Congress are considering banning bitcoin, they don’t know what the real problem is. The federal government should not ban innovative new technologies, but the government has a role to play in funding age-appropriate financial literacy classes from Kindergarten to Grade 12. As an educator and candidate for service in California’s 30th Congressional District in 2022, I believe this is a moral imperative. We allow our young people to leave high school unprepared and ready to fail.

Financial literacy classes are essential for instilling the principles of saving, budgeting and investing, which leads to financial responsibility. These courses provide students with hands-on skills that they can apply in the real world. Current California state standards require public school students to take a one-semester economics course that teaches economics as a whole, but does not address the practical skills people need to manage. their money. Students learn about international trade and monetary policy, but they don’t learn how to find an apartment to rent or calculate credit card interest. Students need courses dedicated to personal finance. They must leave high school knowing the difference between a debit card and a credit card. They need to understand that credit cards are inherently high interest rates and that businesses want people to get stuck in the debt trap by making minimum payments that leave the principle largely intact. They need to know how to make smart investments for themselves balancing risk with potential reward while taking inflation and fees into account.

Every student deserves to be taught financial literacy, but there is a deep inequality in which students really have the opportunity. A federally funded program ensures that every student receives a quality education, regardless of family income. In the absence of these lessons, young people usually learn about their family members’ finances or are forced to figure it out on their own. For children raised in affluent families, this may not be a problem, but children from disadvantaged backgrounds may not have mentors or family members who are knowledgeable about finance. Young people who do not have these skills are doomed to fail. They are vulnerable to predatory loans. They risk falling for check cashing services and payday loan companies promising service fees and rates that seem low, but never are. They are likely to be surprised by the minimum account balance fees and penalties incurred for accidental overdrafts. Financial literacy gives children growing up in poverty a fighting chance.

As the economy evolves with Bitcoin and blockchain technologies, a solid foundation in financial literacy is more important than ever to navigate an increasingly complex world. Bitcoin is already changing finance and investing, and it has the potential to revolutionize the entire economy. If the federal government banned bitcoin, it wouldn’t destroy the technology, but it would help ensure that the U.S. economy loses out to foreign markets and investors. Stifling innovation is never good for economic prosperity. It’s a technology that’s here to stay, and any well-run financial literacy course should teach students about Bitcoin and cryptocurrencies to enable them to make their own decisions. A teacher should never advise a student to make or not to make an investment, be it stocks, bonds or bitcoin. The teacher’s job is to help students learn so that they can make their own informed decisions.

Calls to ban bitcoin are bad for the economy and ignore Americans’ right to manage their own money as they see fit. These calls also ignore what the real problem is. More than half of Americans live paycheck to paycheck. The government must fulfill its obligation to provide every child with an education that prepares them for financial responsibility. Tens of millions of ordinary Americans have bought bitcoin as a chance to build real wealth. It’s hard enough for ordinary people to move forward. It is inconceivable to think that the government could or would pass a ban that, with the stroke of a pen, would destroy all this wealth. In Congress, I will fight for federal dollars to support financial literacy programs and stand with the bitcoin community against any attempt to ban it. We must act together. Where are your representatives on Bitcoin? Are personal finances included in your state’s educational standards? To find. To write letters. Support candidates who reflect your values ​​and who will fight for your interests and make your voice heard.

This is a guest article by Aarika Rhodes. The opinions expressed are entirely theirs and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.

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