Crypto for Kids:
Investing for a Child's Future

According to the Pew Research Center, 88% of the U.S. adult population are familiar with cryptocurrency on some level, and yet despite the research showing that most still lack confidence in its safety and reliability, a record number of Americans have now invested into one or more cryptocurrencies. In 2023, the percentage of Americans who own a cryptocurrency was 30%, which has since breached 40% in 2024.

Despite a difficult 2023 for crypto including the collapse of trading platform FTX, the market is continuing to boom following a 'crypto winter' as the market's historical patterns highlight. The price of Bitcoin reached record highs in 2024, as Wall Street approved crypto-backed exchange funds for the first time.

Whether saving for a college fund or a future home deposit, we know that parents strive to invest in their children's future. But with crypto continuing to dominate the headlines, and forming an increasing number of Americans' investments, are they planning to purchase cryptocurrencies as a way to safeguard their children's financial future? And how much of the crypto invested today is sidelined for future generations to assume ownership of one day?

To find out, CouponBirds surveyed 1,046 parents about their attitudes towards investing in crypto, what the reason(s) might be for investing, and what their thoughts are about the future of cryptocurrencies for their children's future.

Key findings

• 45.2% of U.S. parents who own cryptocurrency have purchased some as an investment for their children

• A further 40.6% plan to buy cryptocurrency specifically for their children but haven't yet

• The most common reason for purchasing crypto for their children is they believe the price will appreciate over time (52.6%) but education (33.3%) and debasement of currency (30.7%) are also key reasons

• 81.4% of parents (invested in cryptocurrency or not) believe that cryptocurrencies will be more valuable than they are today

• 82.3% said their purchases of crypto are on a 'set it and forget it' basis - with no intention of trading or selling before their children take ownership

86% of crypto parents have purchased or plan to for their children's future

Recent research shows that the number of Americans invested in at least one cryptocurrency has breached 40% of the population - more than it has ever been. But of these owners, are parents investing in these assets on behalf of their children?

Our research shows that over four in 10 parents (45.6%) who currently own some cryptocurrency have done so on behalf of their child, with an additional four in 10 (40.6%) revealing that they intend to buy in future. Only 13.8% of this group don't intend to buy crypto for their children.

It seems that the industry's unstable image hasn't put off families searching for long-term financial security for their children. Over 81%, who have invested in the assets or not, believe that cryptocurrencies will be more valuable in 10 years than they are today, and being the key reason that most have put some cryptocurrency assets aside for their child's future.

With a vast majority of cryptocurrency owning parents investing or planning to with their children in mind, it's important to understand what's driving this decision and their thoughts on the cryptocurrency industry in general.

As part of our survey, we also asked parents who have and haven't invested in cryptocurrencies at all, what they think of the asset class and if it's something they think will be important in the future.

Most participants also see crypto's long-term future in buying goods and services. Despite U.S. Federal Reserve data indicating that just 2% of adults currently use crypto this way, 79% believe that today's children will use cryptocurrencies as a mainstream form of currency.

Our research also reveals that parents see cryptocurrency as the best long-term investment for their children. 37.5% of our respondents agreed, a greater number than those who endorse savings accounts (18.7%), foreign currencies (9.6%), and stocks/index funds (8.3%). It seems its long-term prospects entice today's parents more than traditional investments.

More than half of parents see crypto's value on the rise

Cryptocurrency is undoubtedly becoming one of the most popular ways to invest, but why are parents so keen on purchasing these assets for their children?

For the parents who own any form of cryptocurrency the most common reason (52.6%) is that the value of cryptocurrency will continue to grow in the long run. While crypto is speculative and the industry is known for its volatility, it seems people are willing to take the risk that currencies will exceed their value by the next generation.

Our research also shows that 30.7% of Americans favor investing in crypto to help secure themselves and their children against future devaluation of fiat currencies. In contrast to digital currencies, 'fiats' are government-backed securities - think U.S. dollar or British pound.

In September 2022, the Biden administration announced extensive research into the adoption of a U.S. digital currency administered by the federal government. While this is unlikely to be rolled out in the short term, it shows that policymakers are moving towards digital currencies to counter the rise of crypto.

Set it and forget it

Of the crypto parents in our survey, the vast majority see no reason to trade or sell the cryptocurrency they've purchased until their children assume ownership, with most purchasing on a 'set it and forget it' basis.

One-third of parents directly invest in crypto to educate their children

Parents seem especially keen on educating their kids about crypto. Of the 'crypto parents' (i.e. those that have invested on behalf of a child) surveyed, more than a third (33.3%) are doing so in order to help educate their children about cryptocurrencies. However, of all parents surveyed, more than eight in 10 (81.2%) also believe the younger generation should learn about the crypto market in school.

Financial literacy is a vital skill for young people; according to the National Financial Educators Council, Americans lost $415bn in 2020 by mismanaging money. Teaching kids about crypto as an aspect of the financial landscape can certainly help them become smarter with money later in life.

Methodology

Between 1/3/2024 and 3/4/2024, a total of 1,046 U.S. parents were surveyed about their attitudes around cryptocurrency and future investment to benefit their children. Of these, a total of 510 confirmed currently owning a cryptocurrency. The answers from these parents form the answers in the indicated sections above specifying 'crypto parents'.

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