Smiling young girls keeps credit card and searches what to buy online
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In the age of immediate satisfaction, in which gen Alpha has simple access to immediate delivery services such as Amazon Prime and Uber Eats, some parents wonder how to teach the skills for saving young money savings.
Alpha was born between 2010 and 2024 and is not like other generations. They grew up in their hands with smartphones and the opportunity to make purchases when clicking a button.
In fact, her output art is huge. Alpha spent 92 million pounds ($ 126.2 million) between 2023 and 2024, according to the research of the financial technology company Gohenry, which provides children's maps for children in Great Britain, the USA, France and Spain. Gohenry published his youth management report in September 2024, which provided data from 311,832 Gohenry Kids.
Much of this money is directed to online services, with Gohenry children spend over £ 3 million for food suppliers, which corresponds to an increase of 113% compared to the previous year. In addition, almost half of them like to make purchases on Social Media platforms such as Tikok Shop, Facebook Marketplace and Instagram.
According to the research company McCrindle, her economic footprint will probably reach 5.46 trillion dollars by 2029.
“Comfort and speed have become a norm,” said Louise Hill, Gohenry founder, CNBC in an interview. “One of the things we have to remember when we think especially about Gen Alpha is that you are not used to clicking a button that everything that is available on the switch film and do this differently with money.”
Hill explained that despite the online influx of resources for financial education, money products and apps are also increasing that are easy to use, such as credit cards, buy-now-later options and contactless payments. This makes it more complex for parents to teach children who teach teaching skills.
She emphasized how important children understand “that money has to be earned before it can be spent” and then spent it with thoughts and considerations.
Money “make tangible”
Hill said it was of crucial importance for children to see the “concrete aspects of money” like physical money in order to understand their value. Giving “regular pocket money” is a solution, from 50 pence per week to 5 pounds.
“If you give a child 50 pence and select a day of the week that works for you as a family for pocket money, you can give you 50 pence every Saturday. It is incredible how fast you start to see that you can save every Saturday every Saturday when I can save 10 Saturdays.
With physical money it enables children to know how much their favorite items cost.
“You can give a child a few coins, and then it can have the concept of how many of these coins are exchanged for a bag of sweets compared to a larger toy,” said Gohenry's founder.
For teenagers, Hill proposed the method of “pizza budgeting”, which enables children to visually understand how much money will enter into the management of a household and the payment of invoices.
“The pizza is your pot with money or your wages or your pocket money and then with the child. Would you like to advise how big a piece of pizza we have to cut out if this is the household wage? What is a piece we have to cut out to pay for the rent or pay the mortgage?”
When the pizza gets smaller and smaller, it creates an understanding of how much money remains for leisure editions.
Take children in money conversations
Children are like sponges and tend to absorb attitudes to absorb money from their parents.
She offered the example of the cost of living in Great Britain after the Covid 19 pandemic, which was widespread in the media. Gohenry heard from the customers that their children were concerned about the lifestyle crisis.
“Children do everything in this kind of situation in which perhaps stressed as a family about money,” she said.
Parents can talk about money fights without addressing the exact problem, e.g. B. if you cannot pay the rent.
For example, Hill said that if you can no longer afford to have a snack every Friday evening, then the children are included in the manufacture of a “fakeaway”, which means that they do a snack at home.
“What about the children to make a pizza and choose their coverings?
This can help children control their money expenses more and to learn to tighten their belts when they need when they get older.
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