Raising the wealthiest generation: Gen Alpha
Generation Alpha is on track to be the wealthiest generation ever. Credit unions contributing to this cohort’s financial education will share the rewards.
Who is Gen Alpha?
Generation Alpha are the kids of Millennials born in or after 2010 – the same year the iPad debuted. Most of this cohort is under 12, with the oldest members set to become teens in 2023.
There’s one new member of Gen Alpha born every nine seconds in the U.S., according to social analyst Mark McCrindle. As such, it’s estimated Gen Alpha will be the largest generation ever with around 2.5B members by 2025. By 2030 Alphas will make up around 11% of the workforce.
Alphas have a social conscience. Sixty-six percent say they will buy from companies that do good in the world. Alphas also embrace activism – 66% want to work somewhere saving the planet. Kids see and become influenced by young champions like Greta Thunberg and other personalities not that much older than them, says Abdaal Mazhar Shafi of UpstartED.
And as the first generation of the 21st century, Gen Alpha is also the first digital-first generation – 65% of kids 8 to 11 own or have access to a mobile phone. And, 80% of parents of children under 11 say their kids watch YouTube.
Generation Alpha’s financial impact
Gen Alpha is set to have the greatest spending power in history. Early signs show Alphas already have an effect on family finances – 87% of parents saying their “Alpha Kids’ influence their purchases. And research firm Wunderman Thompson reports almost half of kids aged 6 to 16 have access to an Amazon Prime account.
Further evidence of Gen Alpha’s spending power comes from The GoHenry Youth Economy Report, showing that in 2020 alone, the annual spend for American kids and teens was approximately $24 billion, or $450 each. Much of the money going on gaming, retail, tech, fashion and food.
How credit unions can help Alphas reach their financial potential
Financial education leads to better financial decision making and credit unions offering financial education will help their members improve their financial outcomes. Credit unions will win by capturing, nurturing and deepening member relationships and profitability.
Take the next step
Check out our It’s a Money Thing financial education program. It's perfect for teaching and equipping Gen Alpha with basic financial skills. The content is relevant, educational and fun. Parents, teachers and credit union leaders strongly agree.
Tim McAlpine is the Founder & CEO of Currency Marketing. He is best known for developing the It's a Money Thing Financial Education Program that credit unions from around North America are using to connect with new young adult members. He is also a driving force behind CUES Emerge, an emerging leader program that combines online learning, peer collaboration and an exciting competition component.
