A teenage girl smiles with credit card and search for what she bought online
Stocks E+ | Gety pictures
In the era of immediate gratification where General Alpha enjoys easily access to immediate delivery services such as Amazon Prime and Uber Eats, some parents ask how to teach young skills to save money.
Born in 2010 and 2024, Gen Alpha is not like other generations. They grew up with smartphones with their own hands and the ability to make purchases with one click of a button.
In fact, the ingenuity of their spending is huge. General Alfa spent 92 million pounds (126.2 million dollars) Between 2023 and 2024, according to the research from the Gohenry Financial Technology Company, which provides debit cards for children in the United Kingdom, the United States, France and Spain. Gohenry published its youth economic report in September 2024, which submitted data from 311,832 Kids Gohenry.
Many of these money will go to online services, as Gohenry Kids spends more than 3 million pounds on food delivery services, an increase of 113 % over the previous year. In addition, nearly half of them want to make purchases on social media platforms such as Tiktok Shop, Facebook Marketplace and Instagram.
The economy is expected to lead It reaches 5.46 trillion dollars By 2029, according to MCCRINDLE research.
“The comfort and speed are the base,” Louise Hill, the founder of Gahnry, told CNBC in an interview. “One of the things we need to remember when we think about General Alpha in particular, is that it is completely accustomed to everything available in dust, with a click of a button, and this pays different behaviors with money.”
Hill explained that despite the flow of financial education resources online, there was also an increase in products and applications that are easy to use, such as credit cards, paid purchase options, and incomprehensible payments. This makes it more complicated for parents to move in teaching children’s money skills.
She emphasized the importance of understanding children, “the money must be obtained before spending,” and then spent it with thinking and looking.
Earn money “concrete”
Hill said it is very important for children to see “concrete aspects of money” like physical cash, to understand its value. Giving “regular pocket funds” is one solution, from giving 50 People per week to 5 pounds.
“If you give a 50 -breezer child and choose a day of the week that suits you as a family to get the pocket money, it may be Saturday, you can literally give them 50 People every Saturday.
Dealing with material criticism allows children to know the cost of their favorite elements.
“You can give a child some coins, and after that they can have the concept of the number of these coins that are exchanged for a bag of sweets, for a larger game,” said Gohenry Founder.
For teenagers, Hill suggested the “pizza budget” method, which allows children to understand the visual amount that goes to family management and pays bills.
“The pizza is your destiny of money, your wages, or your pocket money and then take the child through,” Do you want to guess the size of the pizza slice that we need to cut if these are home wages?
Since the pizza becomes smaller and smaller, it creates an understanding of the amount of money remaining for recreational spending.
Includes children in money talks
Children like sponge and tend to absorb the positions about money from their parents, so Hill believes it is good to keep them in the episode about family financing.
An example of the cost of the living crisis in the United Kingdom was presented after the Covid-19s, which was widely martyred in the media. Gohenry began to hear customers that their children were concerned about the cost crisis.
“Children pave everything in this type of position where perhaps as a family, you are tense with money.”
Parents can talk about money conflicts without raising the accurate issue, as if they were not able to pay the rent.
For example, Hill said that if you can no longer bear the costs of ready -made meals every Friday, you should involve children in making “Fakeaway”, which means making ready -made meals at home.
Hill added: “What about the involvement of children in making pizza and choosing their layer? Maybe even go to the supermarket with you and pick up this layer instead of paying the money in exchange for ready -made meals and then showing them the amount of money that is provided.”
This children can help you feel more control of their habits in spending their money, and learn to tighten their belts when they need tooth.
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