You can’t teach your kids proper financial responsibility while paying them in smelly old fiat money! The money in your child’s piggy bank is inflating away – its time to educate children about Bitcoin.
Paying for chores and allowance is a fun/easy way to teach your kids about crypto:
- Setup a Bitpiggy (wallet)
- Keep a Sats Ledger
- Payments & Rewards
- Cashing Out
Setup a Bitpiggy (wallet)
Any Bitcoin wallet will do the trick, but a Bitpiggy is a great way to get started with little to no setup. Every Bitpiggy comes with an Opendime, which is a “disposable” Bitcoin hardware wallet.
Opendimes are small stick drives which contain a private key generated on the device and never known by a human. The only way to access the private key is to poke a hole in the Opendime – similar to smashing a piggy bank!
Your Bitpiggy will also come with a QR code containing the public address of your Opendime. Bitcoin hodling parents, grandparents and friends can easily scan the code with their mobile wallet to deposit bitcoin into your child’s Bitpiggy.
It’s a good idea to set your kid up with a read-only wallet, or bookmark a link to their public address in a block explorer so they can cross reference the transactions recorded in their Sats Ledger.
Keep a Sats Ledger
Sats Ledgers are a pair of booklets (called nodes) + sticker pack specifically designed to teach your children proper record keeping while also introducing them to the inner workings of Bitcoin along the way.
One booklet is for you, and one booklet is for them. Every time they complete a chore or get paid an allowance, you can deposit bitcoin into their Bitpiggy, record the transaction in the Sats Ledger and then sync up your nodes to keep everyone honest.
Payments & Rewards
Once 12 payments have been recorded in the Sats Ledger they’ve mined their first block! You can pay your child the agreed upon block reward and let them choose from 45+ stickers that come with every pack of Sats Ledgers.
? Pro Tip: To save on Bitcoin transaction fees, you may want to batch all the transactions recorded in your first block and send just the total + block reward every 12 transactions recorded in the ledger.
At some point, your kids are going to want to spend those hard earned sats. In a perfect world they could buy what they want directly with bitcoin! But more than likely they’ll need to exchange their bitcoin for fiat money.
Now’s the fun part – you get to buy the bitcoin back from them! This is also a good time teach them about exchange rates. Compare the value of sats earned to the amount exchanged ~ hopefully it’s appreciated!
Finally, be a good parent and stash those hard earned sats away in a College Savings account on your hardware wallet. If you’re lucky, maybe your kids will pay their way through college themselves via hard work and sound hodling.