A growing number of parents are now using cryptoassets as a way to save for their child\u2019s future college education.\u00a0<\/p>\n
According to a report by CNBC, 87% of parents who are saving for their children\u2019s future college expenses have invested in cryptoassets. The report cites a recent poll of 1,250 parents by the online magazine Intelligent.com<\/p>\n
The report outlines a number of ways parents can invest in crypto for college savings without \u201cgambling away\u201d their child\u2019s future. In particular, the report tells parents to use crypto in moderation and to proceed with caution when adding digital assets to their savings strategy.\u00a0<\/p>\n
Ric Edelman, a financial advisor and founder of the Digital Assets Council of Financial Professionals, told CNBC:<\/p>\n
\u201cYou don\u2019t want to gamble your child\u2019s ability to go to college on a speculative bet.<\/em>\u201c<\/p>\n Edelman recommends that investors should include crypto as part of their diversified portfolio with an allocation of 1-5%. He warned that parents should have limited exposure and not make crypto the majority of their investment strategy.\u00a0<\/p>\n Ben Weiss, CEO and co-founder of CoinFlip, said that parents should be mindful of their student\u2019s time horizon when creating a college savings plan. He advised against parents investing in crypto if their child will be beginning college in the short-term. However, he said parents with longer time horizons such as a decade or more could be \u201cmore aggressive\u201d with their crypto investment strategy.<\/p>\n The report also warned parents about the tax implications of investing in crypto, saying they could wind up owing a \u201clarge tax liability\u201d when they finally cash out.<\/p>\nImage Credit<\/h2>\n