Generation Alpha Fuels Digital Economy with Rising Influence and Independent Spending

A global study released by Checkout.com titled "How Consumer Behavior Shapes the Digital Economy," highlights the considerable impact of Generation Alpha (ages 8–15) on digital spending worldwide Over a quarter (27%) of household non-essential monthly spending is influenced by Generation Alpha, according to studies done in the UK, U.S., UAE, and China. Digital items make up over a third of this category. Parents, particularly millennials, increasingly buy digital goods for their children, such as educational resources, which are the top choice, followed by streaming services. This shift reflects the growing preference for digital services, which now make up over a fifth (21%) of global household expenditures.

The report also shows regional differences in purchasing behaviors. In the UAE, nearly half (47%) of parents spend monthly on e-gaming for children, while in China, a majority (59%) prioritize digital educational content. Children’s independent spending is also rising: over a third of U.S. children aged 8-15 use pocket money for in-app purchases, and in the UAE, 92% of 15-year-olds make their own payments. Social commerce and emerging payment methods like digital wallets and Buy Now, Pay Later options are gaining traction, particularly in China, signaling shifting consumer behaviors that businesses must adapt to for sustained growth.

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