Americans Turn to Cryptocurrency to Save Up for College for Their Children
An increasing number of parents are currently using crypto assets as a way to save on their child's future college education.
According to a CNBC report, 87% of parents who save for their children's future college expenses have invested in crypto assets. The report cites a recent survey of 1,250 parents conducted by an online magazine Intelligent.com .
The report describes a number of ways parents can invest in cryptocurrency for college savings without "losing" their child's future. In particular, the report recommends that parents use cryptocurrency moderately and exercise caution when adding digital assets to their savings strategy.
Rick Edelman, a financial consultant and founder of the Council of Financial Professionals on Digital Assets, told CNBC:
"You don't want to risk your child's opportunity to go to college on a speculative bet."
Edelman recommends that investors include cryptocurrency in their diversified portfolio with a distribution of 1-5%. He warned that parents should have limited access and not make cryptocurrency a major part of their investment strategy.
Ben Weiss, CEO and co-founder of CoinFlip, said parents should keep their student's time horizon in mind when creating a college savings plan. He advised parents not to invest in cryptocurrency if their child goes to college in the near future. However, he said that parents with longer time horizons, such as a decade or more, may be "more aggressive" with their crypto investment strategy.
The report also warned parents about the tax implications of investing in cryptocurrencies, saying they could face "large tax liabilities" when they finally cash out.
https://coin-signal.com/cryptonews/americans-turn-to-cryptocurrency-to-save-up-for-college-for-their-children/
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