Gen Alpha are spending big — here's 2 tips to raise money savvy kids in a world of instant gratification

They grew up with smartphones in their hands and the ability to make purchases at the click of a button

In fact, their spending wess is huge

Gen Alpha spent £92 million ( $126. 2 million) between 2023 and 2024, according to re from financial nology company GoHenry, which vides debit cards for kids in the U. , France, and Spain

Additionally, almost half to make purchases on social media platforms TikTok Shop, Facebook Marketplace and Instagram

Their economic foot is expected to reach $5. 46 trillion by 2029, according to re firm McCrindle. "Convenience and speed have become the norm," Louise Hill, GoHenry founder, told CNBC Make It in an interview. "One of the things we need to remember when we're thinking Gen Alpha in particular, is that they are totally used to everything being available at the flick of a switch, at the click of a button, and this drives different behaviors with money. "Hill explained that despite the influx of financial education resources online, there has also been a surge in money ducts and apps that are easy to use, such as credit cards, buy-now-pay-later options, and less payments

This makes it more complex for parents to navigate teaching money skills to kids

She emphasized the importance of kids understanding "that money has to be earned before it can be spent," and then spending it with thought and consideration

Make money 'tangible'Hill said it's crucial for children to see the "tangible aspects of money" physical cash, to understand its value

Giving "regular pocket money" is one solution, from giving 50 pence a week to £5 pounds. "If you give a child 50 pence and pick a day of the week that works for you as a family for pocket money, that might be Saturday, then you can literally give them 50 pence every Saturday

It is incredible how quickly they will start to realize 'Oh, look, it's every Saturday

If I up four Saturdays, I've got two pounds

And now I can buy X, Y, Z, if I up 10 Saturdays. "Handling physical cash allows kids to know how much their favorite items cost. "You can give a child some coins, and then they can have the concept of how many of those coins get exchanged for a bag of sweets, versus a bigger toy," the GoHenry founder said

For teenagers, Hill posed the method of "pizza budgeting," which allows children to visually understand how much money goes into running a household and paying bills. "The pizza is your pot of money, or your wages, or your pocket money and then taking the child through, 'Would you to guess how big a slice of pizza we need to cut out if this is the household wages

How big a slice we need to cut out of that to pay the rent or to pay the mortgage. "As the pizza gets smaller and smaller, it creates an understanding of how much money is left over for leisure spending

Include kids in money conversationsKids are sponges and tend to absorb attitudes around money from their parents, so Hill believes it's good to keep them in the loop household finances

She offered the example of the cost of living crisis in the U

After the Covid-19 pandemic, which was cited widely in the media

GoHenry started hearing from customers that their kids were concerned the cost-of-living crisis. "Kids do soak up everything in that of situation where perhaps as a family, you're stressed money," she said

Parents can talk money struggles without raising the exact issue, such as if they're unable to pay the rent

For example, Hill said that if you can no longer afford to have a takeaway every Friday night, then get children involved in making a "fakeaway," which means making a takeaway at. "What getting the kids involved in making a pizza and choosing their toppings

Maybe even going to the supermarket with you and picking up those toppings instead of paying the money for a takeaway and then showing them how much money is being d," Hill added

This can help children feel more in control of their money spending habits, and learn to tighten their belts when they need to as they get older.