Jasmine Birtles
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Gen Alpha and Money: The Biggest Financial Trends Shaping the Next Generation
Vicky Parry
19th Jun 2025
Gen Alpha—children born from 2010 onwards—are on track to become the most financially savvy and digitally fluent generation yet. Even before their teenage years, they’re navigating in-game currencies, budgeting apps, YouTube influencers, and conversations around sustainability and side hustles.
With analysts predicting that Gen Alpha will be wealthier, more entrepreneurial, and more socially conscious than previous generations, it’s vital to understand the emerging financial trends shaping their world in 2025 and beyond.
In this guide, we break down the top Gen Alpha money trends, backed by up-to-date UK data, to help parents, educators, and policymakers support this generation’s evolving relationship with money.
1. Digital Pocket Money Is the Norm
Physical money is going out of fashion for Gen Alpha. Instead, prepaid cards and apps like GoHenry, RoosterMoney, Revolut <18, and HyperJar Kids are teaching children how to spend, save and budget in a digital world.
- As of 2025, over 65% of UK children aged 6–14 use a digital pocket money app (Source: Finder).
- These apps allow parents to automate allowance, set chores, track spending, and introduce interest on savings.
2. Virtual Economies Are Teaching Spending (and Risky Habits)
Games like Roblox, Fortnite and Minecraft are central to how Gen Alpha learns about value exchange. Virtual currencies like Robux and V-Bucks are often their first experience with budgeting.
- 85% of children aged 6–13 in the UK play games involving microtransactions (Source: Ofcom 2025).
- Many children associate in-game spending with real-world value—and learn hard lessons when the currency runs out.
Tip for parents: Set spend limits, use parental controls, and talk to children about digital value vs real-world money.
3. Financial Education Is Starting Younger
Today’s millennial and Gen Z parents are prioritising financial education from early on. Many start teaching money lessons by age 6, using apps, board games, and family discussions.
By age 8, many Gen Alpha kids can:
- Track their own digital spending
- Understand interest and compound savings
- Differentiate between needs and wants
Schools are also starting to adapt. Some UK primary schools now include budgeting and saving in the curriculum—though rollout is patchy.
4. Influencer-Driven Consumerism
Gen Alpha is growing up with social media from birth. YouTube, TikTok and Instagram shape their wants, needs, and money mindset.
- Influencer culture has introduced kids to branded products and sponsored content by age 5
- Children are increasingly requesting products they’ve seen online
This creates pressure to spend, and can fuel comparison and materialism. Parents and teachers are being encouraged to introduce conversations around value, advertising and mindful consumption.
5. Kids with Side Hustles: Mini Entrepreneurs on the Rise
Whether it’s slime-making, YouTube tutorials or selling homemade crafts, Gen Alpha is already entering the creator economy.
- Etsy and TikTok are popular platforms for kids (with parental accounts) to market products
- Platforms like Kidpreneurs and Young Enterprise are helping children turn hobbies into mini-businesses
Many of these “side hustles” are done with parental supervision, and they help instil early lessons about profit, marketing, and even tax.
6. Green Spending and Social Values Matter
Sustainability and ethics are major priorities for Gen Alpha. They’re more aware of climate issues than any generation before—and their spending reflects that.
- Parents report their kids asking for eco-friendly toys, second-hand clothes, and plastic-free packaging
- Gen Alpha is influencing family purchasing towards greener options
Brands that don’t align with these values are starting to lose favour with Gen Alpha households.
7. Rising Money Anxiety Among Kids
With more access to media, Gen Alpha are also more exposed to discussions around inflation, job insecurity and the cost-of-living crisis. This has led to growing financial anxiety—even in primary school children.
- In 2025, 1 in 4 UK children aged 8–13 say they’re worried about money (Source: Money & Mental Health Foundation)
- Experts are calling for age-appropriate ways to talk to kids about financial stress and family budgets
Tools like mindfulness apps, visual money trackers, and honest but calm conversations are helping children build financial resilience.
8. The Future of Gen Alpha Finance
As this generation grows up, expect big changes to the financial landscape:
- Demand for fintech products tailored for kids and teens
- Stricter regulation of child-targeted advertising and in-game purchases
- Earlier inclusion of money lessons in UK schools
- Greater focus on values-based banking and ethical investing for young people
How to Support Gen Alpha with Money in 2025
- Set up a free trial of a money app like GoHenry or RoosterMoney
- Use fun, age-appropriate games to teach budgeting (like Monopoly Cash Decoder or The Game of Life)
- Have open conversations about money values, advertising, and the difference between “rich” and “wealthy”
- Explore free financial resources for parents at MoneyMagpie.com
Takeaway Tips: Setting Gen Alpha Up for Future Financial Health
- Make money part of everyday conversations – Talk about spending, budgeting and saving in daily life.
- Start habits early – Use digital apps, but also encourage “spend/save/give” jars or trackers.
- Model financial behaviour – Kids watch and absorb how you handle your money.
- Build emotional resilience – Teach them that mistakes are part of learning—and saving is an act of self-care.
- Teach beyond spending – Help them understand credit, taxes, insurance and even pensions when they’re ready.
Building these habits now lays the groundwork for a generation that sees money not just as a tool—but as a responsibility and a source of security.
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