The future of Generation Alpha
Hello my fellow Baby Boomers, Gen X’ers and Millennials!
I’m sure you all are aware of Gen Z but did you know there’s another Generation right behind them … Generation Alpha!
That’s right, Generation Alpha is anybody born after 2010 which means this marks the first year that they become TEENAGERS! Soon enough this generation will be applying for student loans, purchasing cars and homes once they enter the workforce. We have the opportunity to do right by this generation but we must take a preventative approach. It starts by monitoring our own money behaviors, our kids are ALWAYS WATCHING.
A study from University of Cambridge showed that by age 7 money habits are already set; so even though there are new initiatives in place to mandate financial literacy courses in High School in some states, the question I pose here is when is it too early to teach about money?
The answer to that is never. Educating about finances comes in different forms, we can teach about conservation and simple counting. By four to five years, children understand they need to pay for merchandise, but may not understand that coins have differentiated values. As the digital economy continues to grow it’s imperative that children understand different dollar amounts.
This generation is projected to have the GREATEST SPENDING POWER in history and we would fail our youth to not give them the tools to protect it. As they say, what’s better – to be the vitamin (financial education) or the pain pill (financial repair)?
Well what are some basics for parents to use to teach about money…
- Mobile apps
- Chore charts
- Books
- YouTube
- Good ol’ dinner conversations
The CFPB has a great free tool to learn more about the basics of educating youth on financial knowledge and decision making skills.
Interested in learning more about how your credit union can effectively communicate with families of Generation Alpha kids? Check out Kiddie Kredit and request a demo on how we can help effectively educate on financial topics (especially credit), establish positive habits, and help your CU establish early accounts.
