May 11, 2021
Why are Gen Alphas becoming creative entrepreneurs?

It’s boom time for screen time as Gen Alphas and younger Zers start leveraging the earning opportunities of online play. Yet while they may be more financially autonomous, they may not necessarily have adequate education around money management. So, how can parents and brands help them?

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“People’s money habits are formed at a young age based on the times and their surroundings,” says Mitchell Kraus, the owner of wealth management firm Capital Intelligence Associates. [1] For the two-thirds of 4- to 14-year-olds across the US who are given a regular allowance, those habits are quite different from those of their Gen Y parents. [2]This is partly due to the pandemic, which has accelerated the uptake of digital transactions among teens and younger children. “Kids are not only telling parents that they want to spend their money digitally, they’re now telling them that they also want to receive it digitally,” says generational expert Dr. Eliza Filby. [3] Indeed, according to the CEO of RoosterMoney, Will Carmichael, rather than spending on old analog favorites such as books and magazines, many kids viewed accessories for Roblox and Minecraft as ‘essentials’ in 2020. [4] And even before the COVID-19 outbreak, while 61% of parents said they paid their children’s allowance in cash, 30% paid digitally either by mobile payments, direct bank transfer, or with a debit card. [5]