Shifting Priorities in Family Savings
According to Bloomberg, parents usually focus on building 529 college savings plans, brokerage accounts, or high-yield savings for their children. Recently, some have moved away from traditional methods, choosing to accumulate Bitcoin as a future asset for their kids. Some believe stock market gains aren’t impressive enough, while others see it as a smart diversification strategy. Many are strong advocates, confident that despite Bitcoin’s 500% rise since the last “crypto winter,” its growth journey is far from over. In December, Bitcoin crossed the $100,000 mark, a huge leap from under $16,000 in November 2022.
A Personal Mission: Saving Bitcoin for the Future
Consider Jim Crider, a 35-year-old dad of four from San Antonio, Texas. He plans to save one Bitcoin for each of his children by the time they turn 18. His kids are aged one, four, five, and seven. As a certified financial planner, he understands the risks but firmly believes Bitcoin could hit $1 million within a decade. He feels this is an opportunity too valuable to ignore. “Not having any Bitcoin exposure is actually the bigger risk,” Crider explained.
The introduction of Bitcoin exchange-traded funds last year brought in new investments and renewed interest after a period of skepticism following several crypto-related scandals. The asset’s surge following President Donald Trump’s election highlighted its strong comeback.
Though few financial advisers recommend putting all funds into crypto, having a small portion in Bitcoin fits some traditional financial principles. According to Annamaria Lusardi, head of the Initiative for Financial Decision-Making at Stanford, longer time frames allow investors to embrace more risk. A modest crypto allocation could enhance diversification. However, she still prefers Roth IRAs for young investors due to their simplicity and tax-free growth.
Some parents are leaning on crypto to boost their college savings. With private university costs nearing $100,000 per year, traditional stock returns feel inadequate to some.
Take Travis Headley, a 43-year-old physician from Louisiana. After discovering Bitcoin about four years ago, he began converting his entire paycheck into crypto. He even withdrew funds from his kids’ 529 plans—despite tax penalties—to invest entirely in Bitcoin. “If it makes sense for my own savings, it makes even more sense for my kids since they have more time to grow their investments,” Headley shared.
Professional soccer player Alex Crognale shares this perspective. When his daughter was born, he wanted to secure her financial future. Unimpressed by traditional 529 plan returns, he turned to Bitcoin for its flexibility and growth potential. “The numbers show me that sticking to the traditional path won’t create the best opportunities for my child,” Crognale remarked.
Source: CNN
Teaching Financial Lessons Through Crypto
Chris Bobay from Nashville has been passionate about crypto for eight years. When his first child arrived, he and his wife wrote a children’s book about Bitcoin, featuring forest animals and simple explanations. Their kids, now four and seven, even have their own crypto wallets. His eldest eagerly checks Bitcoin’s value daily and prefers to use Tooth Fairy money to buy Bitcoin.
Families like Bobay’s show how crypto is evolving. As Bitcoin matures, so do its early adopters, who now teach their kids about the digital currency. If Bitcoin were a person, it’d be old enough to drive today.
529 plans offer state income-tax deductions, tax-deferred growth, and tax-free withdrawals when used for education. Crypto doesn’t come with these perks. Yet, even parents cautious about crypto find it hard to keep their kids away from it. Bitcoin’s popularity among young people is undeniable, driven by peer influence and digital trends.
