Gen Alphas Already Exhibit Strong Buying Power Across Several Categories
Key Takeaways
More than two-in-five (42%) of Gen Alpha’s parents give their kids an allowance. That number trends upward with the kids’ ages, but most of their money goes to kid favorite categories like toys, games and snacks.
More often than spending their own money, kids are always influencing their parents. A plurality of parents said their Gen Alpha kids ask them to buy something a few times a week.
Kids over age 3 flex enormous influence over family’s food decisions, both at the grocery store and in deciding which restaurants to visit.
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For more insights about Gen Alpha, download our report Gen Alpha’s Influence.
The spotlight is dimming on Gen Z as marketers’ favorite generation, and Gen Alpha is waiting in the wings. The oldest Alphas are entering their pre-teen years at age 11, and they’re not just Gen Z 2.0. While yes, they are another generation of digital natives, the media and technology landscape that their parents are operating in has changed dramatically from Gen Z’s early years. The macro and micro factors influencing young adults today are permeating parenting decisions. Consumerism, media and brand preferences take root early, so to understand how kids are influencing family spending we surveyed the parents of 0-11 year olds.
Gen Alphas spend their own money on kid favorite categories like toys and candy
Alpha’s parents are split on the degree of control they have over children spending their own money. That money includes allowances, which 42% of Alphas receive, or other funds, like a crisp $20 bill in a birthday card from grandma. About half (51%) of Gen Alpha’s parents say they can at least spend some of their own money without parental restrictions. Those numbers are, of course, lower for the youngest Alphas.
Kids predictably prioritize fun purchases with their own money, like toys, food or candy, and games. As they get older, in-app purchases, social time and personal care products (including makeup) become more common.
Gen Alpha kids spend their money on toys, food and games
Some brave parents also give their kids independent buying power via connected credit cards. For the most part, kids’ money comes in the form of cash. Few parents allow their kids to use their credit cards (11%) or fund their kids’ online money transfer apps like Venmo (12%). Stored payments in various accounts do give kids a bit of a boost, hopefully with their parents’ permission. For example, some kids (14%) can use their parent’s payment details saved in a streaming account to buy a movie. Online games and stores are the most common place where parents allow their kids to use linked payments, and that freedom increases as kids get older and have more defined preferences, and can handle the responsibility to spend appropriately.
Kids have the power of persuasion — and they’re using it a lot
Regardless of any funds they may or may not have access to, Alphas are influencing the buying behaviors of those around them in notable ways. This shouldn’t surprise readers who are raising Alphas of their own, but kids are quite incessant with their shopping requests: Across most age bands, pluralities ask to buy something at least a few times every week.
Kids ask their parents to buy something for them frequently
Those requests are most often for toys and food: More than 3 in 5 (61%) of Gen Alpha’s parents said their child regularly informs grocery purchases, and a similar share said the same about toys.
As kids age their influence over family’s food choices grows: Once a kid hits 3, about 80% of parents said they influence all, most or some of the family’s grocery and snack choices. Pre-teens rule restaurant choices, with 74% of parents saying 9-11 year olds weigh in on those decisions.
Kids influence household purchases across categories, most often for food and toys
Gen Alpha’s influence over electronics, personal care, experiences and sports spending decisions increases dramatically with age, so while they don’t top the list here, they become much more important as the tween years approach.
For more on what drives kids’ brand awareness, and their top brands by category, download Gen Alpha's Influence.
Ellyn Briggs is a brands analyst on the Industry Intelligence team, where she conducts research, authors analyst notes and advises brand and marketing leaders on how to apply insights to make better business decisions. Prior to joining Morning Consult, Ellyn worked as a market researcher and brand strategist in both agency and in-house settings. She graduated from American University with a bachelor’s degree in finance. For speaking opportunities and booking requests, please email [email protected].
