AFTER millennials and GenZs come this new generation cohort called Generation Alpha. They are those born on or after 2010 – the year when the first Instagram post was published and the first generation of the Ipad was released.

Often, they are the children of the millennials, or those born between 1982 and 1994, the digital natives whose activities are mediated by the screen. Some are younger siblings of internet-influenced GenZs, or those born between 1995 to 2010.

A US-based business intelligence company, Morning Consult, conducted a survey among 3,001 American parents with children under the age 9 in December 2022. Another survey was conducted among 1,000 parents with children under the age of 18.

Here is part two of the study of Morning Consult. Let’s delve into Gen Alpha’s purchasing influence, financial future and eating habits.

Purchasing influence

Gen Alpha’s parents are involving their children in the purchase of household items such as their games and toys, children’s apparel and to some extent, family groceries, and in the selection of restaurants.

Morning Consult said children’s influence on household purchases “is consistent” across income groups.

Aside from being more skilled in communicating their choices, children age 5 and above also encounter classmates or schoolmates who share their opinions. Moreover, around 56 percent of Gen Alpha parents say their kids have watched Youtube videos of product hauls or unboxing.

Kids by age 7 usually ask their parents for specific brands of food and videos to watch. Brand affinity for electronics, video games and restaurants comes by ages 8 to 9. 

Around age 10, as they approach their teenage years, kids become more conscious of apparel brands.

“More than simply letting them pick their favorite products, Gen Alpha parents involve their kids in household purchasing decisions to let them exercise critical thinking and decision-making skills that will set them up for future success. Alphas’ input on these decisions, especially in categories that play a big role in their daily lives, paves the way for strong brand preferences from a young age.

That will impact brands that are looking to speak to this cohort: Expect Alphas to already have strong brand preferences by the time they become financially independent,”

Morning Consult

Financial future

Around 47 percent of surveyed parents of Generation Alphas are “financially fraught.” The parents’ mindset when raising their children is for their children to be “financially successful.”

Many of the Gen Alpha parents are asking for financial advice on how to set their children up for financial success.

Who are they turning to? They ask a variety of sources, but their trusted connections like family and friends are the most popular.

But among the professionals, parents with postgraduate degrees turn to banks. The rest resort to financial advisers, just do-it-yourself Google searches and financial planning or budgeting apps. 

There are also those who listen to financial advice from social media, their employer, online influencers, and even online brokers or “robo-advisers.”

Saving for the future

More than 70 percent of GenA parents who have either opened a general savings account or college savings fund for their children started saving when their kids were 4 years old. More than 70 percent of Gen A parents who plan to open a general savings account or college savings fund for their children said they will start doing so at age 10 of their children or older.

Conversations about money have also started at age 4, Morning Consult said.

Gen Alpha parents want their children to have a solid foundation of financial concepts at a young age, and they are putting in the work to make this a reality,”

Morning Consult

The top topics are: 

• spending money and how to consider costs 
• savings and budgeting 
• different types of money (cash, credit, checks)

“By teaching Alphas how to make purchases and about different payment methods early on, parents are encouraging their children to be more financially independent, sooner,” it added.

Thus, despite the economic worries, parents are confident their children will be “secure” financially in the future, it said. Unlike their own parents, Gen Alpha parents say they are also more likely to pay for their kids’ schooling.  

Alphas are growing up amid financial anxiety. Their parents, many of whom have lived through two periods of economic uncertainty, are making sure they’re setting their children up for financial success, but that might not be enough. Brands should expect this generation to be careful and anxious spenders,”

Morning Consult

Eating habits

Parents of Generation Alphas know the importance of building healthy eating habits. Six out of 10 parents said eating fruits and vegetables, fresh food, and variety of food are most important. They also want their children to limit sodas or sugary drinks as well as other sugar consumption.

Compared to parents of teens, more Gen Alpha parents are conscious about their children’s sugary intake.

Sugar is an important issue. The share of Gen Alpha parents looking to limit their children’s consumption of sugar or sugary drinks is roughly 10 points higher than the share of parents of teens. Even if parents become less concerned about sugar as their children age, it’s a large gap to close, suggesting this is part of the foundation of healthy eating parents are looking to instill in Alphas,”

Morning Consult

Only 18 percent of Gen Alpha parents think eating organic food is important.

Ironically, Gen A families tend to be more frequent buyers of fast food. And their top favorite restaurant: McDonald’s.

At least 43 percent of Alpha parents said their kids eat fast food at least weekly, more than the average adult.

“Alphas are fervent fans of fast food. It’s all a balance for Gen Alpha parents,” the study explained.

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