Gen Alpha are making money online, going cashless and giving more to charity than ever before, according to research from GoHenry, the prepaid debit card and financial education app for kids aged 6-18. 

The insights into young people's financial habits - gathered from more than 435,000 UK GoHenry customers and samples of over 2,000 young people aged 6-18 - indicate that this age group are more assertive than previous generations when it comes to their money, proactively earning it from a young age and making more conscientious spending decisions.

Entrepreneurial kids are making money by gaming and selling clothes online over babysitting and dog walking. In fact, a quarter of kids and teens (25%) are now earning from selling items on online marketplaces such as Etsy, Ebay, Depop and Vinted with an average monthly 'wage' of £7.34. Nearly one in five (18%) kids are earning money from gaming and more than a quarter (26%) aim to become entrepreneurs when they are older¹.

This is a generation of savvy savers, with data showing that monthly savings for GoHenry kids increased by 14% in 2022 (from £14.67 in the first half of 2021 to £16.75 during the same period of 2022). Whilst they are watching the pennies, they are still willing to help others in need, with the number of kids giving to charity increasing by 256% in 2022. This resulted in the total amount donated increasing from £120,000 in H1 2021, to £435,000 in H1 2022².

When it comes to spending, as well as being the first digital natives, this generation is likely to be the first cashless natives too, with only 10% of 6-18 year-olds’ spending in cash. Gen Alpha kids are shopping more sustainably, with the average spend on Depop having risen by 114%, despite a decline in the amount spent on fashion generally². GoHenry data from the first half of 2021 vs the same period in 2022 also shows children spent less on “non-essential” items like toys (-32%), fashion (-14%) and gaming (-11%)².

Commenting on Gen Alpha’s money habits, Louise Hill, COO and co-founder of GoHenry said: “Even though they have only been around since 2010, Gen Alpha are proving to be shrewd when it comes to their finances, earning their own money through less traditional means and thinking carefully not only about what they buy but also where they buy from. With the eldest of this generation now entering their teens, we can expect an exciting few years ahead as they use their money skills to make their mark on the world. In fact, many adults could take a leaf out of their book when it comes to earning, saving, spending and giving responsibly!”