At least in North America, personal finance education is rarely taught in schools and it shows in the gulf that exists in most people’s understanding of many money basics–a recent survey found that eight out of 10 people polled on the street drew a blank when asked to define a bond.
A further seven out of 10 also did not know the definition of a hedge fund despite most saying confidently that they knew it.
When it comes to cryptocurrency, the need for education is arguably even bigger–when bitcoin’s value was climbing fast in 2021, one study found that only 16.9% of those who bought some cryptocurrency “fully understood” its value while 33.5% had absolutely zero knowledge of it.
A year later, the crypto market is in a major downturn that some analysts call a full-on crash. Even so, there is no shortage of startups promising great “just you wait” returns while new versions of the same scam are popping every week.
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Need for a Crypto ClassA new survey by cryptocurrency site BanklessTimes found that 64% of parents with school-age kids would want cryptocurrency to be established as a class subject or taught in some form.
A further 40% of parents wanted to see classes or some form of education about blockchain technology while 35% of parents want their kids to learn about the metaverse and other similar virtual worlds.
The study does not differentiate between those who believe that cryptocurrency will be a relevant subject for years to come and those who see it as one part of financial literacy for their kids.
That said, it is increasingly something that many believe their offspring should know.
“With the increasing popularity of cryptocurrencies, it is important for people to understand how they work,” BanklessTimes CEO Jonathan Merry said in a statement. “And what better place to learn about this new technology than in school?”
Interest in NFTs is significantly lower; only 25% of parents said that they’d want it to be taught in school.
While cryptocurrency taught at the high-school level is still relatively rare, research from Coinbase (COIN) found that just over 40% of the world’s top 50 universities offer at least one class in cryptocurrency.
Adding Financial Literacy to EducationWith more than 10 courses and its own Center for Blockchain Research, Stanford University was by far the leader for those looking to study cryptocurrency at the post-secondary level.
As many of these classes were launched at a time when interest in cryptocurrency was at its peak, cryptocurrency education is increasingly being seen as part of a wider push to improve financial literacy among younger generations as well as apply the basics of personal finance to any new technologies that will come up.
A Junior Achievement/Fannie Mae survey from the summer found that while 85% of teens believe owning a home would bring them “the good life” only 45% could correctly explain how a mortgage worked while 76% “lacked a clear understanding of credit scores.”
“The financial illiteracy among them is worrying, and we need to come up with clear standards and devise how we can teach financial education to establish positive behavior,” Bill Ryze, a chartered financial consultant in Tennessee, told TheStreet in August. “There is a need to train educators to deliver financial education effectively.”