Parents Start Saving Bitcoin for Their Children! Traditional Funds are Becoming History - Coin Bulletin

In the US, some parents have started investing in Bitcoin instead of traditional 529 education funds and savings accounts for their children's future.

According to Bloomberg, these families believe that Bitcoin will provide higher returns in the long run and are adopting this new method to secure their children's financial future.

For some investors, this decision stems from the belief that the exchange is not generating enough profit. While some believe that Bitcoin will gain significant value in the long term, others do it for the purpose of diversifying their portfolios. The fact that Bitcoin surpassed $16,000 levels in 2022 and exceeded $100,000 in December 2024 has led many parents to move away from traditional investment models.

For example, Texas financial advisor Jim Crider aims to accumulate at least one Bitcoin for each of his four children by the time they reach 18 years old. Crider believes that Bitcoin will reach $1 million in the next ten years and sees it as an opportunity not to be missed for his children's future.

Another investor, Louisiana doctor Travis Headley, completely converted his children's education funds to Bitcoin. After using tax-advantaged 529 plans for ten years, he withdrew all the money and invested it in Bitcoin. Headley, believing that his children should also have the same earning opportunity in the long term as he has invested his own savings in crypto.

Investing in Bitcoin is not just a financial choice, but also turning into a method of building a family connection. Chris Bobay from Nashville wrote a book called “Bitcoin for Kiddos” (Bitcoin for Kids) to teach his children about Bitcoin. His children check the price of Bitcoin every day and want to buy Bitcoin with the money they receive from the tooth fairy.

However, some financial experts point out that 529 plans offer more reliable tax advantages. This is because in many states, these funds offer tax deduction, tax-free growth, and tax-free withdrawal when used for education. Bitcoin does not have such incentives.

Still, crypto is becoming more and more popular among kids. Kids learning how to mint NFTs, investing in memecoins, and talking to their friends about crypto. Digital assets are now creating a financial shift that affects not only young investors, but also their families.