- Over a quarter (26%) of household spending is influenced by Gen Alpha kids
- Over two-thirds (67%) of parents say they’ve learnt about new brands and products from their Gen Alpha child, with 69% going on to buy them
- A quarter (25%) of Gen Alpha parents say their child has influenced them to save
LONDON, 12TH SEPTEMBER 2024: Gen Alpha, the cohort of young people born from 2010 onwards, is emerging as a generation of family ‘finfluencers’. The latest Youth Economy Report from prepaid debit card and financial education app GoHenry reveals the youngest generation’s combined £3.3 billion spending power influences everything from where families spend, to the brands they buy, and even how much they save.
The exclusive insights into Gen Alpha’s money habits - gathered from over 310,000 6-14-year-olds and over 2,000 Gen Alpha parents in the UK - show that the youngest generation holds the household purse strings, with Gen Alpha parents estimating that, on average, over a quarter (26%) of household spending is influenced by their child’s opinions. A further two-thirds (67%) of parents say they’ve discovered new brands or products from their Gen Alpha kids, with 69% going on to buy them.
Gen Alpha aren’t just influencing, they’re earning and saving more than ever before too. In the last year, GoHenry Gen Alpha kids and teens earned £193M (an increase of 52% from the previous year) and stashed away £20.5M in savings (an overall 36% increase compared to the previous year).
Gen Alpha’s money skills rub off on parents
With nearly 1 in 10 kids (9%) already saving for a house, the youngest generation’s forward-looking approach to money is encouraging parents to think more carefully about how much they’re saving too. A quarter (25%) of Gen Alpha parents say their child has influenced them to save more, and over 1 in 5 (21%) say their child has influenced them to shop around and be more frugal.
In terms of what’s driving Gen Alpha’s savings savviness, the most popular pocket money-saving motivators for this age group are:
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To buy new items (e.g. clothes, shoes, beauty products, tech) - 43%
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To go out with friends - 32%
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To build a rainy day fund - 20%
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To not have to rely on parents - 20%
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To travel when they’re older - 17%
Eva, a six-year-old from Wiltshire, has been teaching her Mum new ways to save: "My mummy and I are learning to save together, and it's fun helping her find new ways to do it. I noticed that bottles of flavoured sparkling water are really expensive, so I told her we should buy cordial and mix it with plain sparkling water instead. It's much cheaper!”
Social media driving kids’ spending habits
The first generation entirely born in the 21st century, Gen Alpha has been hugely influenced by the growth of social media. This influence is reflected in where kids are spending their money, with over a third (39%) of Gen Alpha admitting that social media impacts their brand preferences, and 28% saying it influences what they buy.
According to GoHenry data, in the past year, Gen Alpha kids spent over £3 million on food delivery services (an increase of 113% year-on-year), and girls spent £4 million on health and beauty (a rise of 201%) as popular online beauty trends dominate social media feeds.
The financial finesse of Gen Alpha
Having grown up watching bedroom businesses boom on social media, over a third (38%) of Gen Alpha have already started or plan to start a side hustle, with 29% motivated to do so to save for the future - demonstrating a desire for financial independence from a young age.
This ambition is having a positive influence on family funds too, with almost 1 in 5 (19%) Gen Alpha kids who have started or plan to start a side hustle doing so to help their parents out with household bills.
Louise Hill, Co-Founder and CEO of GoHenry said:
“Gen Alpha is quickly becoming the most influential financial force in their households. Influencing their parents on how to budget more effectively and spend more responsibly, these kids are changing the face of family finances.
“Their spending power of £3.3 billion, paired with their entrepreneurial mindset and savviness for savings, means they could be the most economically powerful generation yet. Ensuring they receive a solid financial education will be vital to unlocking Gen Alpha’s potential and setting them - and their families - up for a more robust financial future.”
Learn more about GoHenry’s latest Youth Economy Report ‘Gen Alpha: The New Family Finfluencers’ here.
About the data:
Censuswide:
This research, commissioned by GoHenry, was conducted by Censuswide with a sample of 2,001 nationally representative UK parents of children aged 6-14 (2,001 children aged 6-14 were available to answer specific questions). The survey fieldwork took place between 08.07.2024 and 17.07.2024. Censuswide abides by and employs members of the Market Research Society, which is based on the ESOMAR principles, and is a member of the British Polling Council.
GoHenry:
Based on 311,832 active GoHenry members (aged 6-14 and born since 2010) between 28/06/22 and 27/06/23, compared to the same group of members also active between 28/06/23 and 27/06/24.
Cebr:
Rounded up from £3,299,442,891. Cebr conducted a weighting process on anonymised GoHenry member data. Weighting took place on the basis of three demographic cross-breaks: age, gender, and region. Cebr is an independent consultancy known for providing sound business advice grounded in thorough and insightful research. Since 1992, Cebr has been at the forefront of business and public interest research, offering analysis, forecasts, and strategic advice to major UK and multinational companies, financial institutions, government departments and agencies, and trade bodies.
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For media enquiries: comms@gohenry.co.uk
About GoHenry:
Launched in 2012, GoHenry is a financial education pioneer with a simple mission to make every kid smart with money. The GoHenry prepaid debit card and financial education app is designed for kids aged 6 - 18. Parent and child apps provide tools to help kids learn about money — by earning, saving, spending responsibly, giving, and more, all with parental oversight. In-app Money Missions offer a gamified, integrated financial education experience that offers a rewarding and fun way for kids to build financial literacy.
In 2023, GoHenry teamed up with Acorns to deliver financial wellness to the whole family. Together, their members across 5 countries fiercely believe that being good with money is a vital life skill. For more information, visit GoHenry.com or follow @gohenry on Twitter, LinkedIn, and Instagram.
In the U.K. the GoHenry card is issued by IDT Financial Services Limited pursuant to a license from Visa Europe. IDT Financial Services Limited is a regulated bank, licensed by the Gibraltar Financial Services Commission. Registered office: 57-63 Line Wall Road, Gibraltar. Registered No. 95716.
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1 Rounded up from £3,299,442,891. Cebr conducted a weighting process on anonymised GoHenry member data.. Weighting took place on the basis of three demographic cross-breaks: age, gender, and region.
2 Based on 311,832 active GoHenry members (aged 6-14 and born since 2010) between 28/06/22 and 27/06/23, compared to the same group of members also active between 28/06/23 and 27/06/24
3 The research, commissioned by GoHenry, was conducted by Censuswide with a sample of 2,001 nationally representative UK parents of children aged 6-14 (2,001 children aged 6-14 were available to answer specific questions). The survey fieldwork took place between 08.07.2024 and 17.07.2024. Censuswide abides by and employs members of the Market Research Society, which is based on the ESOMAR principles, and is a member of the British Polling Council.
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