Why Young Generations Need Financial Education to Embrace Bitcoin as the Solution
Financial literacy is more critical than ever for younger generations facing an increasingly challenging economic environment marked by rising prices, stagnant wages, and rampant inflation. A lack of basic financial education in Canadian school systems has left many young people in precarious positions. These circumstances are poised to have devastating effects on their future success. Additionally, younger generations are confronted with an economic climate that has made homeownership and other financial milestones, once easily achieved by older generations, slip further out of reach. Young people are experiencing a greater and more pervasive sense of disillusionment about their futures than any generation before them; many feel the weight of these economic pressures, yet, due to a lack of education on the financial system and the role of monetary policy, they often do not know where to begin seeking solutions. It is imperative that we prioritize financial education in schools to equip young people with the skills to understand and question the economic landscape they encounter. At this critical inflection point, with the mainstream global adoption of Bitcoin, we have an opportunity for Bitcoin to be understood as a transformative solution to the challenges they face.
It is no secret that financial literacy is not adequately taught to younger generations, despite being mandated to attend school for 12 years. Students are inundated with course material that lacks tangible benefits for the real world. While some may pursue higher education believing that a university degree will secure their futures and expand career opportunities, this path is frequently presented as a necessity rather than an option. In many cases pursuing University often necessitates taking out large student loans, often without a clear understanding of how loans work, what amortization entails, or the long-term implications of accumulating debt. From here, students are further funneled into irrelevant classes, fulfilling elective requirements with little connection to their chosen fields of study. At the same time, basic financial literacy courses remain conspicuously absent. Consequently, when graduates leave with a mountain of debt, they find themselves equipped with little to no knowledge of managing their finances effectively.
Beyond the lack of financial education young people receive, it seems that financial institutions have become increasingly more predatory, which only compounds this problem. Young people are encouraged to take out credit cards to begin building credit; however, they are frequently left without any clear explanation of how these cards function or the implications of carrying a balance that cannot be paid off. While some may benefit from parental guidance, not everyone can access knowledgeable financial mentors, leaving many to navigate this terrain alone. Ironically, credit cards which are generally the most promoted means for establishing credit, often come with some of the highest interest rates in financial lending. This situation is particularly concerning for Gen Z and younger generations, especially as credit card interest rates have escalated since the 2008 financial crisis. Compounding this issue, overdraft fees introduced in the 1990s further entrap young individuals in debt spirals created by excessive credit card use. The credit card industry appears increasingly predatory, with companies actively soliciting new customers and constantly offering to raise credit limits. Additionally, layaway services like Kalarna and Affirm have surged, making financing accessible for nearly any purchase and providing young people with endless access to credit they often can't manage. The consequences of these practices are evident in economic data, showing a significant rise in bankruptcy claims among younger individuals in recent years. Even for those who haven’t accrued debt, inflationary pressures make life feel increasingly unaffordable. With financial institutions becoming increasingly more predatory in the 21st century, one must wonder how the lack of financial literacy and the potential omission of this education in early schooling seemingly benefits these institutions.
Beyond personal financial behaviors, younger generations have been gaslighted by institutions that claim inflation has been tamed and expected targets have been met. However, nothing feels as affordable as it once did. Consumers are not naive and feel the inflationary pressures acutely at the checkout, regardless of whether these institutions choose to acknowledge them. Yet, for the average member of Gen Z, understanding inflation and its impacts is both fleeting and limited. While we recognize how inflation affects our standard of living and everyday expenses, we often struggle to grasp the full scope of what is happening, particularly because financial literacy was not part of our school curriculum. It raises the question: how can we expect younger generations to be financially literate when they have not been provided with the necessary tools and resources to learn? Inflation is one of the largest drivers of wealth inequality worldwide, yet it is frequently downplayed by our government and media. The blame is often diverted to discussions of corporate greed or insufficient taxation on the wealthy, while inflation itself is brushed aside.
Inflation permeates every aspect of our lives, from everyday goods to significant assets, with $50 now barely stretching at the grocery store. Meanwhile, wages remain stagnant, failing to keep up with the rising costs of essential goods and services, much less the dream of homeownership for young people. The social implications of this inflationary pressure are profound; purchasing a home represents financial security and is often viewed as a cornerstone of success. Yet, for many hardworking young people, this goal is simply unattainable, leading to feelings of nihilism and an evident rise in consumerism. Faced with the daunting reality that meaningful purchases are out of reach, many young people view saving as futile, choosing instead to seek short-term gratification as their dollars depreciate in value. With the traditional wisdom of “work hard and save” becoming obsolete, the need for comprehensive financial education has never been more urgent. Now more than ever, it is essential to empower younger generations with the knowledge to understand financial manipulation and to highlight revolutionary alternatives like Bitcoin.
The significant knowledge gap that exists between where we are and where we need to go poses a substantial challenge. It is unreasonable to expect young people to instinctively question our financial system when they possess only a minimal understanding of how it operates. To foster a generation that actively engages with these issues, we must prioritize financial education, making it not only readily available but also a mandated part of school curricula across Canada. By establishing a foundational understanding of both personal finances and the government’s role in monetary policy, we can empower young individuals to critically assess the current economic climate they have been dealt. Young people are increasingly seeking clarity amid the affordability crisis they face. With Bitcoin gaining international recognition and entering mainstream conversations, it presents an opportunity for educational growth. However, without adequate financial literacy, younger generations may view Bitcoin merely as a speculative investment rather than a groundbreaking and revolutionary means to restructure the flawed monetary system they face. Younger generations must become equipped with a basic understanding of our financial system so they can appreciate Bitcoin’s potential and advocate for a more informed future that allows them to reclaim the financial milestones that previous generations have taken for granted.
