In a recent interview with “Real Housewives of Atlanta”, cast member Phaedra Parks, she revealed that she gave her 13-year-old son, Ayden, $150,000 to learn about building wealth through investments. Parks mentioned that her son is interested in rental properties and is particularly drawn to cryptocurrency.
While most cryptocurrency exchanges have age restrictions that prohibit minors from trading digital assets, parents can open accounts on behalf of their children and allow them to engage in trading. It’s becoming increasingly common for the younger generation to invest in digital currencies, with numerous stories of children delving into crypto since the advent of Bitcoin (BTC).
One notable example is Erik Finman, who received a $1,000 investment when he was just 12 years old. By turning 18, Finman had become a millionaire through his BTC investment. A study by the teen neobanking platform Gohenry last year revealed that 1.33 million children from the U.K. had invested in cryptocurrency.
In April 2022, T. Rowe Price released the 14th annual Parents, Kids, and Money Survey, which unveiled that 57% of children aged 8-14 are familiar with digital currencies. Interestingly, the survey indicated that children were more knowledgeable about cryptocurrencies than their parents, as only 47% of parents reported being familiar with the technology.
During an interview with People magazine, Phaedra Parks shared that she provided her 13-year-old son with $150,000 for investment. Parks, who hails from a middle-class family of educators, mentioned that her own parents would have aspired to provide such an opportunity but lacked the financial means. Parks highlighted her son’s interest in cryptocurrency assets, stating, “Ayden is big into cryptocurrency and researching how to become a millionaire before he is 25.” She added that both of her sons “love anything about making money in cryptocurrency,” with her other son, Dylan, aged ten, sharing the same aspirations for future financial stability.
Various guides and books are available to help parents introduce their children to digital currencies, as kids of all ages have embraced decentralized cryptocurrency technology. Dedicated applications like Earlybird Crypto aim to assist kids in beginning their journey into cryptocurrency investing. Earlybird raised $4 million from Seven Seven Six, and Gemini in November 2021, and the platform secured additional funding on June 13, 2022, though the exact amount remains undisclosed. Additionally, an annual Crypto Kids Camp in Los Angeles caters to children aged 5 to 7, offering education on cryptocurrencies and artificial intelligence (AI).
Parents encouraging their children to invest in cryptocurrency at a young age raises an interesting discussion. While some may view it as an opportunity for financial education and potential long-term gains, others may have concerns about the volatility and risks associated with the crypto market. As with any investment, parents must provide proper guidance, education, and supervision to ensure responsible and informed decision-making.
Overall, the increasing involvement of children in cryptocurrency investments reflects the growing influence of digital currencies in our society. As the younger generation becomes more familiar with and enthusiastic about this emerging asset class, it will be intriguing to witness how their experiences and perspectives shape the future of finance.