In the age of instant gratification where Gen Alpha has easy access to instant delivery services like Amazon Prime and Uber Eats, some parents are wondering how to teach the young money-saving skills.
Born between 2010 and 2024, Gen Alpha are not like other generations. They grew up with smartphones in their hands and the ability to make purchases at the click of a button.
In fact, their spending prowess is huge. Gen Alpha spent £92 million ( $126.2 million) between 2023 and 2024, according to research from financial technology company GoHenry, which provides debit cards for kids in the U.K., U.S., France, and Spain. GoHenry published its Youth Economy Report in September 2024, which provided data from 311,832 GoHenry kids.
Much of this money is going to online services, with GoHenry kids spending over £3 million on food delivery services, up 113% from the year before. Additionally, almost half like to make purchases on social media platforms like TikTok Shop, Facebook Marketplace and Instagram.
Their economic footprint is expected to reach $5.46 trillion by 2029, according to research firm McCrindle.
“Convenience and speed have become the norm,” Louise Hill, GoHenry founder, told CNBC Make It in an interview. “One of the things we need to remember when we’re thinking about Gen Alpha in particular, is that they are totally used to everything being available at the flick of a switch, at the click of a button, and this drives different behaviors with money.”
Hill explained that despite the influx of financial education resources online, there has also been a surge in money products and apps that are easy to use, such as credit cards, buy-now-pay-later options, and contactless payments. This makes it more complex for parents to navigate teaching money skills to kids.
She emphasized the importance of kids understanding “that money has to be earned before it can be spent,” and then spending it with thought and consideration.