Gen Alpha - the new family finfluencers

Our latest Youth Economy Report, based on exclusive insight into over 310,000 6-14-year-olds' money habits, reveals that Gen Alpha are not only flexing their economic muscles but also affecting family spending and educating parents on financial management.

 

Gen Alpha, the cohort of young people born from 2010 onwards, is emerging as a generation of family ‘finfluencers’. Our latest Youth Economy Report 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.

 

Over the last year, GoHenry Gen Alpha kids and teens earned £193 million, a 52% increase from the previous year, spent £92 million, and have stashed away £20.5 million in savings, a 36% overall increase in savings compared to the previous year)**. It’s no surprise then that Gen Alpha parents say that, on average, over a quarter (26%) of household spending is influenced by their children, with 15% of parents saying their kids influence between 41-60% of the household budget***establishing them as the new family finfluencers.

 

Family Finfluencers

 

Gen Alpha may be young (the eldest is just 14), but it is the most technologically advanced generation ever. As digital natives, they’re smart about money, savvy about spending, and fearless about influencing family finances. This is why our comprehensive research into the money habits of this generation has earned them the label "family finfluencer," reflecting how they’re bringing financial knowledge and influence to the household economy.

 

 

 

Just over 1 in 5 (21%) of parents say their child has influenced them to shop around and to be more frugal. Nearly half (46%) say their child has influenced which restaurants they eat in, and 43% say their child has influenced which destinations they choose for family trips. Their influence doesn’t stop at spending, with 1 in 4 parents (25%)**** saying their child has influenced them to save more.

 

Gen Alpha are financially assertive

 

Gen Alpha is also more financially assertive than previous generations, proactively earning money from a young age. 38% make £12.38 a month selling online via Depop, Vinted, and eBay, 30% earn £10.01 a month pet-sitting, 27% make £9.63 from being a social media influencer, and 25% make £8.97 from their music****. Yet, with many still being young, the great majority (77%)*** top up their funds by doing chores around the house, with homework, vacuuming, reading, and feeding pets amongst the highest-paid.

 

Top 10 chores

 

 

Based on 311,832 active GoHenry members 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

 

Our data shows that savings for GoHenry Gen Alpha kids increased by +31% to £20.5M** last year. Additional research reveals that nearly 1 in 10 (9%) are already saving for their first home**. Other saving motivations range from 1 in 5 (20%) wanting to have money to fall back on to 12% saving to help parents with bills and household costs. 

 

Most popular savings goals 2024

 

 

"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! When we go shopping, I always look for 'special buys' and show her the cheaper brands of the same things we need. This way, she saves money and can buy bigger and more fun things later. 

 

I save 50p each week from my pocket money so I can buy birthday cards all by myself. I also save the rest of my weekly pocket money on my GoHenry card for the school summer holidays. I'm also saving some money that I can't touch until I'm 18, which mummy says will help me a lot when I'm grown up."

 

- Eva, age 6

 

Who’s influencing the influencers?

While parents and friends still hold a lot of sway with the youngest generation, social media influencers are affecting what Gen Alpha buys, where they shop, how they earn, and even their future ambitions.

Currently, 39% of 6-14-year-olds say social media impacts their brand preferences, 28% say it influences what they buy, and 24%**** say it affects what food and drink they try.

 

Our data backs this up, showing the direct impact on Gen Alpha’s social habits. In the past year, GoHenry kids spent over £3M on food delivery services, an increase of 113% on the year before, while GoHenry girls spent £4M on health and beauty, a rise of +201%**, reflecting the insatiable social media beauty trend. 

 

While the rise of food delivery services and the arrival of the Sephora generation indicate that Gen Alpha values convenience and personalisation, they are also highly aware of and concerned with environmental and ethical issues. Over half (52%)  say they prefer to save up for more expensive, sustainable products that are better for the environment, and 34%**** would rather buy secondhand items than new ones, with platforms like Depop and Vinted (in the Top 10 of most popular shops for GoHenry Gen Alpha girls) facilitating this trend. 

 

Consequently, financial education has never been more critical in helping this generation move forward and build a secure financial future.

 

Says Louise Hill, CEO and Co-founder of GoHenry, “Even though they have only been around since 2010, Gen Alpha are proving to be shrewd and smart about their finances and their effect on the family economy. 

 

“As a result, we need to ensure that this generation gets all the financial education they need and want, from the real-life practice of handling money to navigating how to manage their money throughout their lives. They are also a generation showing hope for the future and one - as their growing family finfluencer status shows - we can all learn from.”

 

 

 

 

 

*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.

**GoHenry data 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

***Mean: Percentage. (Excl. "None/doesn't influence my spending "). Censuswide conducted the research 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.

****Censuswide research *****“Agree” & “Strongly Agree” answers combined. Censuswide research