Financial literacy is a set of skills that enable individuals to make sound decisions with their money. The ability to apply these skills, however, is often lacking in the education system. As a result, many citizens are paying a hefty price for not understanding how financial matters work.
Research from the National Financial Educators Council shows that in 2020, American adults lost an average of $1,634 due to poor money management skills. The U.S. as a whole lost around $415 billion that same year. The figures are predicted to be even higher in 2021.
With the rise of digital currencies and Web3 technology becoming increasingly popular among the younger generation, it’s important to teach them the skills to make sound financial decisions. Blockchain technology can provide an appropriate learning environment for this.
Learning Financial Literacy with Crypto
The use of digital assets and blockchain technology could potentially lead to a resolution of the money mismanaging problem on both an institutional and individual level. In 2018, the cryptocurrency project Banano was launched, operating on the Directed Acyclic Graph (DAG) architecture. The network is instantaneous and no transaction costs are associated with it.
The primary goal of Banano is to make it easy and accessible for people to access the digital world. The project provides intuitive tools, informative workshops, and helpful guides to make learning about crypto and finance easy for everyone.
One of the programs developed from the Banano ecosystem is designed to address and fix financial illiteracy. The program, called Banana in the Classroom, is a reward system that enables teachers to use blockchain technology to help teach students financial and application skills.
One of the success stories is that of Canadian teacher Mr. G. He uses the program to give points to students who are respectful of their surroundings, complete certain tasks and stay focused. The points can be used to buy rewards such as pizza, extra playtime outside, games, toys and school supplies.
The reward system also introduces children to concepts such as saving, spending and earning. Additionally, the program teaches conflict resolution, as major group purchases must be approved by 100% of the group. This requires students to discuss options and come to an agreement.
Mr. G. claims that since implementing the program in 2019, there has been a significant improvement in student behavior and classroom morale.
“Banano in the Classroom has been a great success and has significantly improved behavior, general cleanliness of the classroom, and classroom morale. The students get very excited about cashing in their $BAN for weekly prizes. Some groups will even save their Banana week by week to save money for better rewards. That helps tie in a lot of the financial literacy skills I wish I had learned at nine years old.”
The project aims to eliminate the barriers to entry that often plague other crypto projects. The platform is easy to use and provides valuable financial literacy and application skills for all ages, making it a great choice for anyone interested in cryptocurrency.
Disclaimer. This page does not endorse any products or content. Our goal is to give you as much information as possible. Readers should conduct their own research about the company before making any decisions. This article can’t be considered investment advice.