Ok stacker hivemind, i often am baffled that kids don't seem to get a rudimentary education about finance of any kind and while i have taught my eldest at least the basics of bitcoin, i was thinking i should do more and maybe plan out my own thing, make it fun.
I think the easiest way to think about it is maybe in terms of topics or units, so what would be the top-level.
what topics would you say are the most important to include?
I haven't started with my daughter yet but with my son I used to make him write out his own monthly financial statements. Basic Balance sheet and income statement. Didn't take long at all as there wasn't much to write. He might get some money for doing choirs or as a gift that would fall under income and maybe he would buy flowers for mom for mother's day that would be expense. Then we would track the value of his assets. Bitcoin, a couple silver and gold coins and I had a small stock market account for him but have since sold that and he just holds Bitcoin now.
this is a great idea actually, never thought of doing a balance sheet. going to implement this, i think it will be quite good for my youngest who is much more of a spender as compared to the eldest who is a saver
Are his chores denominated in bitcoin?
He doesn't get paid for chores anymore (turning 16 this year) but when he was younger he started on a fiat standard but was moved to a bitcoin standard when I was comfortable with him having his own wallets (hot and cold).
I will start this soon with my daughter.
I think the idea of compounding. How money multiplies like rabbits. Having an understanding of how money grows should encourage children to put aside some money for a rainy day
i think the most important thing with compounding is they need to understand that to compound, money has to be invested in something since it wont grow by sitting in the piggy bank
I think the most important thing is just to start with the basics: what is an interest rate? Why do borrowers have to pay an interest rate?
Then, what is a bond? Are the buyers of bonds borrowers or lenders? What about the issuer of a bond? What would cause demand for bonds to go up/down? What would cause supply of bonds to go up/down? What does that do to interest rates?
what is interest , why does it exist is a good one yes, do you think bonds might be too advanced for a 12 year old, or just have that as a later module ?
the reason to talk about bonds is that everything in finance is a promise and bonds are the most basic kind of promise
even cash is kind of like a promise: it's a promise that you can redeem it for something of value in the future. That understanding of money as a promise is a good entry way into understanding inflation and bitcoin
My view is that experience is the best teacher.
Our daughter gets tiny payments for doing small chores, like a quarter for feeding the dog or a dollar for sleeping through the entire night in her own room. We started doing this because she wanted to be able to buy stuff at the school store. Interestingly, she hasn't actually wanted to buy anything since earning enough to do so.