Generation Alpha has a gigantic influence on purchasing

They sometimes don't get off the ground, but children belonging to Generation Alpha are extraordinarily voracious consumers and have a great deal of buying power, so they do not deserve to be ignored by brands (often too focused on targeting centennials).

According to a recent study carried out in the United States by DKC, Generation Alpha has at their young age (we are talking about children between 8 and 13 years old) a great financial impact on households. In fact, children in this demographic group spend an average of $45 every week, the equivalent of $2,350 a year and $50 billion if we add up the purchasing power of the entire Alpha Generation residing in the United States.

It is also worth noting that 36% of Generation Alpha children earn income by selling and reselling items on the Internet (and are therefore not solely and exclusively at the mercy of their parents to indulge their fervent consumerism). 47% also undertake tasks outside the home (babysitting, for example) to fill the piggy bank. More commonly, this demographic group is paid by their parents in exchange for doing chores inside the home (69%) and as a reward for good behavior or good grades (73%).

The fact that Generation Alpha is so fond of consumption is influenced by the fact that spending money today is literally just a button press away. "Today's 10-year-olds don't face the hurdles they traditionally had to deal with when it comes to spending money, and that has a huge impact on how they look at money and how they spend it," explains Matt Traub, COO of DKC, speaking to Fast Company. "Digital in-app payments have eliminated the friction of having to plan ahead, ask parents to open the wallet, take the money to the store and buy the desired item there," Traub adds.

The apps also make it easier for children to make purchases at physical retail outlets without necessarily carrying cash. And after school, a child can go to Starbucks, for example, and buy a milkshake there thanks to her parents' Starbucks account (which has been pre-enabled on her cell phone).

The fact that money is more readily available to children does not mean, however, that Generation Alpha is particularly maniacal. In fact, 76% of parents surveyed by DKC in its report claim that their children make better purchasing decisions than they did at the same age. And not only that. Sixty-nine percent say their children are perfectly familiar with the concept of corporate values.

Household purchasing decisions are often made at the dictates of Generation Alpha

Generation Alpha also has a huge influence on household spending. Indeed, 49% of spending is influenced by the children of Generation Alpha. In the same vein, 92% of parents confess that they often discover new brands, products and services through their children. And this influences the way adults spend their money in all areas of activity, whether it's food, fashion or music.

Because of Generation Alpha's influence on adult purchasing decisions, Traub has renamed this demographic cohort the "Gateway Generation". After all, the youngest members of the household are the gateway to a number of brands and their products and services for the oldest members of the household. "This means that if brands can properly capture the attention of Generation Alpha, they can also access the buying power of their parents, who are typically attached to the Millennial Generation", says Traub.

However, the influence of Generation Alpha on their parents is actually two-way in nature and flows both ways. Not surprisingly, the favorite stores of the youngest members of the household (Walmart, Amazon and Amazon) are also to a large extent their parents' favorite outlets.

Looking at Generation Z's favorite brands, the list is led by Nike, followed by Amazon, Walmart, Adidas, Apple, LEGO, Target, Starbucks, Disney and Nintendo. Kids are also fascinated by luxury and 69% of parents say their children have a clear predilection for premium brands.

However, children are also conscious consumers and 66% of parents confess that their children implore them to donate money to charitable causes. In addition, Generation Alpha also feels particularly concerned about issues such as diversity, equality and inclusion (68%) and sustainability is also a major concern (63%) for the youngest members of the household.

While Generation Alpha is very attached to social networks, this also ultimately leads their parents to pay more attention to the influencers who are active there in order to better understand how they influence their children. This is what 94% of parents confess. And 54% of parents are also more likely to make purchases influenced by the ads and influencers their children follow on social networks.