Both Gen-Z and Gen Alpha place great importance on financial literature, just like their parents

Much like their mothers who control 85% of household purchases, children today are influenced by recommendations from friends and influencers online. 37% of American parents say their kids are more likely to ask them to buy a toy or gadget because a friend has it, while 22% say their kids are most influenced by online influencers.

Generation Alpha, the generation after Gen Z, are the children of Gen X, Millennial, and Gen Z parents. 11 years old, they’re impacting the spending behaviors of their millennial parents (now in their peak spending years) and already giving consumer brands a run for their money. This is a generation that is not afraid of money: earning it, spending it, investing it and also budgeting for it.

Greenlight Financial Technology (also simply known as Greenlight) is a family-owned financial technology company that offers debit cards and investments for kids. Its product is an all-in-one financial management platform specially designed for families, with a debit card and companion app. Parents can automate allowances, manage household chores, set flexible spending controls, and invest for their children’s future. Children and teens learn to earn, save, spend wisely, give and invest with parental approval.

The company recently polled Gen Z and their parents on how they both view financial literacy as part of their life goals. The survey also asked about financial skills parents and teens wish they had learned. Tim Sheehan, CEO and co-founder of Greenlight, says the product is typically used by families with children between the ages of 8 and 18, so the survey results could also serve as takeaways for the generation. Alpha and their parents.

In 2021, the average weekly allowance for Greenlight children ages 5-9 was $12. Generation Alpha managed an average of $204 for the year and collectively saved over $225 million. Given that young women invest their money nearly a decade earlier than women 36 and older, a natural conclusion is that young working mothers in this demographic are also involving their children in the investment.

Gas prices stress the whole family, and as a result, “sex talk” takes a back seat.

67% of parents and teens rank money as one of the topics they’ve talked about the most in the past six months, just behind the pandemic at 78%. Surprisingly, teens and their parents are on the same page, especially on feelings about the impact of current events like inflation and gas prices on family stress. Parents and teens agree that gas prices (68%) and inflation (55%) are the biggest financial stressors right now. Less discussed topics include politics, drugs and alcohol, sex, and natural disasters. Additionally, 36% of parents and teens report increasing their budget due to inflation and the rising cost of goods.

Teenagers have fewer jobs than previous generations, but still want to control the money.

85% of parents had a job at the age of 18, while only 53% of today’s teenagers say they have work experience. Despite the decline in teen jobs, teens ranked having a well-paying job as their #1 financial life goal and know they would learn valuable practical experience and important financial skills by working. However, they still want access to money and the ability to manage it. Last year, teens aged 15-17 who used Greenlight managed $959 on average and those aged 18-22 managed $1,258.

Teenagers have big life goals and seek financial knowledge to achieve them.

93% of teens think they need financial knowledge and skills to achieve their life goals, and 97% of parents agree. More than half (54%) of teens aspire to become an entrepreneur, however, boys are more likely to pursue a career in entrepreneurship (60%) versus (34% of girls). Results from the Greenlight survey show that teens know financial literacy is essential to achieving their life goals, yet still score an average of 64% on the National Financial Literacy Test.

Sheehan agrees: personal finances for children and teens have never been more important, likely because younger generations have easier access to financial knowledge. “We see Generation-Z starting to invest using Greenlight where they can research stocks and ETFs and make real investments with parental approval.”

The pandemic has also exposed more gaps in financial literacy and reinforced the importance of developing healthy financial habits for Generation Alpha, just at a time when they were in the early stages of learning the value of money. . “We see this group using the chores and allowances features of Greenlight because with chores and allowances, kids can make the connection: ‘If I do this job, then I’ll make money,'” Sheehan says. “We’re also seeing this age group learn to save and spend wisely, once they start managing the money they’ve earned.”

Everyone in the family agrees: the most important financial skill children and teens need for their future is knowing how to budget and spend wisely. They have already understood the importance of financial literacy, but new and growing financial stressors reinforce its importance. With April 1st marking the start of Financial Literacy Month, it’s a great opportunity for working parents to not only assess their own financial situation, but also to educate their children and teens about financial matters, the education and the importance of financial literacy.

Comments are closed.