Starting Cryptofinance in the Youth

in LeoFinance2 months ago (edited)


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Looking at my grandma watching the time of the day pass by slowly I have grown to appreciate the opportunities we are currently seeing unfold. It’s expensive to be old and your options to do what you want get more limited due to your body’s changing needs. I’m sure a lot of the members from the elderly group could feel some tension related to personal finance.

When their pension funds aren’t enough to sustain their increasing costs of living, they know somewhere along the decades that have passed, they regret missing out a financial opportunities that could've avoided this problem in their later years. Listening to my grandma talk about job opportunities they had, and the lifestyle they were conditioned to, I couldn’t blame some of the mistakes made financially. They would have done better if they had more access to information and options we have now.

I live in a third world country and technology here adapts slowly except for information hubs found in the nation. The fact we have less than 5% of people investing in the stock market direct and indirectly speaks volumes of how better financial literacy can save futures later on. Our educational system is still tailored to produce employees working on factories and maintaining the status quo. It hasn’t yet adapted to the changing needs brought by technological advancement of our time.

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In a world where some can’t keep up processing new information being pumped daily, those that are left behind will end up being financially vulnerable. Upcoming retirees are slowly waking up that their pension funds aren’t going to keep up with inflation. Their job security will be gone and sources of income will be limited especially for those have had poor financial planning decades prior. You just can’t trust the government and banks to have your best interests at heart because these institutions prioritize their own survival over your welfare.

So while you’re young, consider starting a financial plan for your kid to follow and think for themselves. Because once you get old and you body aches everywhere, each day will be a horror story as you try to push yourself to work continuing a lifestyle of hand to mouth (this is from a third world living perspective). When you’re old, there is a physical and mental limitation to what tasks you can accomplish but you still got to do something otherwise you’ll starve and in debt. Maybe I’m a little pessimist when I paint that graphic scene in mind but that’s the impression I got from an 89 year old street sweeper working on a hot summer’s day.

I just think a financial literate person has that moral obligation to pass the knowledge onto the next generation. We are lucky to live in a time where things are starting to be interesting in the world of finance. The traditional way of finance on a global and personal scale is changing. Those that can’t keep up get left behind and the consequence is felt generations after just as my forefathers made their choices for the succeeding generations.

From experience, motivating teenagers to save up works if they have a spending goal in mind. But it’s all alien to them what adulting is and the financial burdens it entails especially as one ages through the workforce. They won’t know their missed chances until they get hit financially. Those college loans won’t be appealing once they know what debt means for their future.

So while they’re young, it’s good to teach them the basics of personal finance like budgeting, saving, and spending within their most. Most important I think is having them develop habits that make them think for themselves. I know we still need traditional institutions for finance but letting them know that are multiple ways to achieve financial freedom goes a long way. I don’t want my kid to think having their money on a bank secures their future. I don’t want them to think that by giving their hard earned money to a mutual fund manager is enough. And I don’t want them to think that they should rely their financial needs in the government that can change their minds depending on the political weather.

The older one gets, the more limited choices that they can afford. It’s not that they no longer are incapable of making choices, but more along the lines of lacking in resources to enforce those choices. My grandma lives with a lot of chronic diseases that eats away her budget sadly. She worked for years in the government that now decreased her benefits and somehow raised the cost of living for everyone else. Looking back, they didn’t have access to crypto, were conditioned that the government would take care of their needs, and living in bliss before recessions took a toll on their funds. We should learn from their past.

When they’re young, financial mistakes tend to be less punishing because they have plenty of time to bounce back. But what can you do for someone that planned their finances too late and are waiting for their time? Certainly not resort to toxic charity.

My own parents are entering their retirement period and was blunt enough to tell me things are getting downhill for them financially. It’s a common thing in Asia where family becomes close knit and parents still live with their kids even when they have a family of their own. I live away from them but dread at the idea that they won’t be able to provide enough for themselves while they’re aging. So I started stacking up some bitcoin and other tokens for that purpose. It’s not much for now but hoping it’ll mount to something eventually.

If you made it this far reading, thank you for your time. This is a creative footer by @adamada. A Hobby Illustrator.

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Our educational system is still tailored to produce employees working on factories and maintaining the status quo.

This is so true. As someone who took up fine arts in college, we expect to be a full-time artist after graduating. You know, doing fine arts for the sake of doing arts, meeting collectors, investing in ourselves, being a business owner ourselves.. We were never equipped with marketing strategies, how to handle finances as an artist, know how to protect ourselves from those who'd want to take advantage of us, knowing about investing (cos our art is basically an investment of a collector), etc.. They should be the second most important things that should've been taught to us but nothing. What's funnier is that every year, the university sends us a form that asks where we are now in life - if we're employed... and self employment is just a second option. When the very reason why we took up fine arts is to be self employed lol.

Upcoming retirees are slowly waking up that their pension funds aren’t going to keep up with inflation.

This too. LOL. I'm 24 but I am now worried if I put my savings in Peso, it will be worth nothing by the time I'm retired. Sadlayf. It's getting harder and harder to live everyday and I see the prices just go up so fast while the salaries stay still. What's sadder is many young people seem to not realize this yet. And investments are seen as "ez money" or "scams", which makes Filipinos stay away from a lot of opportunities that could save their lives in the future.

This is a well written post, adam. :D

We were never equipped with marketing strategies, how to handle finances as an artist, know how to protect ourselves from those who'd want to take advantage of us, knowing about investing

It's difficult to teach something that you don't know or even practice. That's why academicians and field specialists teaching the same thing can still have different perspectives on the matter. Getting a degree is no guarantee you learned something, it may just mean some are just good at memorizing stuff than knowing what it means in the real world.

I know doctors that have given up their practice only to be confined into the classroom setting and the gap in their teaching styles are evident. When in the area, what I felt confident about in the classroom only made me dumb on the field. The rules are different and it's the same energy as getting to learn marketing and studying business. Not everyone that has a degree on those fields will be good at it.

I just learned the life hack of asking people who practice what they preach. You can talk about business with a teacher teaching about business but the advices would be different from a self made entrepreneur vs an entrepreneur with formal education. If that makes sense. I first ask if the person I'm asking does what I'm trying to know rather than be all about the textbooks.

I'm 24 but I am now worried if I put my savings in Peso, it will be worth nothing by the time I'm retired. Sadlayf.

If you lurk on the tradings and investments channel on our discord you'd see me make some stupid chats about returns and stuff. Yeah, even the smol 3% HBD interest is still more than what our savings account gives per year and that's already a big hit to what people are missing out from not using this platform, 3rd world advantage.

You got a reason to worry but you also have a lot of time to start with. I wish I started from where you are right now. I had the idea but wasn't willing to put in the work. To think I could have made my first million by now.

PS. I got pressured when you said it's a good post now had to review and edit out my typos. I don't really value my own works highly or have any impressions that anyone would stop by and read my post. It's a pessimistic habit that curves my ego. I even feel bad if some posts of mine are overrewarded when I don't think I've put in the work :P

Thank you for the tip!

That is so kind of you
Good bless you

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I never realised you were from The Philippines! The problems there are reflected here in Thailand to a certain extent. One difference here is that the younger generation is often being supported by their parents still as the parents all seem to have land to sell but this is a gamble as they are losing their assets in the hope that the younger generations will turn things around and go back to supporting them in their old age as they are 'supposed' to do traditionally.
I think Crypto may not turn out to be an answer unless its HIve. Simple account names, ultra-fast transfers and extremely low cost. Crypto appears to me to have been taken over by simple money makers and whilst they are just trying to generate cash, traditional finance companies have been getting their act together with simple, fast payments. The movement of money is the key to crypto for me. Anything to put those parasites WU and that pawnbroking firm , zhuallier?? you have there out of business! That's what brought me into crypto. As for a store of value, until we get rid of greedy speculators and get stability, it will always be no more than a niche instrument for trading.
BEst wishes to you. Hope you're having a great weekend :-)

That culture is more common on Asian countries where children are used as retirement funds by their parents. That's why it's difficult to escape poverty by the generation as each new generation will be tied down to the financial mistake of the previous generation by some sense of tradition and moral obligation.

It's programmed and I see how it costs a lot of families their wealth. I find it both irrational and understandable. Some people just prioritize family over wealth which is nothing wrong but how it plays out is something that has been a persistent problem for years.

I used to think of crypto as a revolution for anticensorship and spreading wealth without borders but those old values changed as you say. Now it's treated like quick cash grabs. I still believe in it's power on the sense that it is easy to get into compared to institutional programs for investing. Not an ideal way to start financial literacy training but if it's more simple and lucrative to understand, I'd go for it.

I did some math on what I could gain on investing on Hive despite the failure of it being an investment, it still earns me more than 10x what I get from dividend stocks from my country and I only need to invest half the money I put on my stocks to get those large returns. 3rd world advantage I guess but still life changing to think about long term.