Signal16 Mar 2023
Gen Alpha kids are finding their financial footing Gen Y parents are trying to protect their kids from the financial turmoil they faced back in 2008. During the cost of living crisis, many mums and dads are setting up bank accounts while others are having money talks with their children – but more can be done to boost Gen Alpha's finances.
A Morning Consult report found that Gen Y parents are making efforts to equip their kids with the financial security they missed out on. Many Yers graduated into the 2008 financial crisis, starting their adulthood amid a rocky job market with student debt and rising living costs. Now, post-pandemic and mid-cost of living crisis, they want to arm their children with financial literacy and safety nets to prevent similar struggles. “The great recession left many Millennials disillusioned with the idea of reaching or surpassing their parents’ level of financial success... They faced an unexpected uphill battle at the beginning of their careers, and they want their children to be better prepared for economic uncertainty than they were,” says Charlotte Principato, financial services analyst at Morning Consult.
Gen Y parents have placed savings accounts and college savings at the top of the list of their priorities for their kids – some (10%) have already opened CD accounts/money market accounts/IRAs for their kids, and more than half have discussed spending, saving, and budgeting with their children. This bolsters parents' belief in their kids' future, with 77% being very or somewhat confident in their child’s financial future. However, there is more scope to help Gen Alpha find its financial footing in the future. For example, Goalsetter gamifies money matters to encourage family discussions around finances.
©Karolina Grabowska (2020)
