Exclusive: America's youngest consumers drive almost half of household spending
Why it matters: The young cohort's $101 billion in direct spending power gives restaurants and retailers a glimmer of hope at a time when the kids' parents are fretting about the state of the economy.
"They have more spending money directly than you might think they would have, and their economic influence is enormous," DKC President Matthew Traub told Axios.
"That's why we call it the gateway generation, because they're this gateway into household spending decisions and what brands are patronized in a way that I think earlier generations haven't ever wielded,"
By the numbers: 42% of all household spending is influenced by 8- to 14-year-olds, American parents said in the survey.
The age group is directly spending $101 billion per year, in addition to the influence they have over their parents' wallets.
The average Gen Alpha child has $67 of their own money to spend in a typical week, amounting to $3,484 per year. This is an almost 50% increase in direct spending over 2024.
The intrigue: "It's not just thinking about what an 8- to 14-year-old is going to purchase or ask their parents to purchase for them, but also how they're influencing the entire household's spending," Traub said.
State of play: Gen Alpha kids have the most sway over their households' food and entertainment spending, according to the report.
52% of parents said they traveled to new or different vacation destinations after being prompted by their children. 61% said they're making more online purchases.
More than half of parents surveyed also said their Gen Alpha kids are pushing them to give charitable donations.
What we're watching: 91% of Gen Alpha children are earning their own money either through payment for chores, good grades and behavior, doing odd jobs outside of the house, or online selling and reselling.
"They're already positioning themselves to earn more money and be savvier about how they spend it than any generation before that," Traub said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 minutes ago
- Yahoo
4 Money Management Tips for Working Multiple Side Gigs
The gig economy started out as a way for workers to earn extra money though side hustles, but it has long since evolved well past that stage. Today, an estimated 57 million workers participate in the U.S. gig economy, according to Deloitte — and many of them hold multiple side gigs. Trending Now: Check Out: Gig workers currently represent more than one-third (36%) of the total American workforce. By 2027, these workers are expected to represent the majority of the workforce. With so many Americans working side hustles, it's more important than ever to develop money management habits designed to benefit gig workers. Here are four money management tips if you work multiple side gigs. Don't Sleep on Tax Planning Unlike traditional payroll workers, gig workers can't rely on employers to withhold their federal and state income taxes. Instead, you're responsible for keeping track of your income, expenses and tax liability. This can get complex when you hold multiple side gigs because you need to keep up with several different income sources. To succeed, you need to stay organized, plan early and keep at it every day. You'll also need to pay estimated taxes every quarter to the IRS and your state tax authority. Explore Next: Fidelity recommended setting aside a percentage of all your gig income and putting it into a dedicated tax account. This will help you avoid scrambling for cash when it's time to pay your taxes. To learn more, visit the IRS Self-Employed Individuals Tax Center. You can also read Fidelity's own tax tips for the self-employed. Take Advantage of Available Deductions Speaking of taxes: One of the best money moves you can make as a multiple gig worker is to research all the deductions available to free lancers and the self-employed. These deductions lower your tax bill and put more money in your pocket. What's more, with multiple side gigs you might be available for multiple deductions that apply to specific jobs, according to Intuit Turbo Tax. For example, as a rideshare driver you can deduct certain mileage costs. If you're also a tennis instructor, you can deduct certain equipment costs. And if one of your side gigs is landscaping, you might be able to deduct rent for spaces you use to store landscaping tools. Here are some common deductible expenses available to gig workers, according to Intuit Turbo Tax: Business mileage on your car. Dues and subscriptions related to your work. Tools and equipment. Tuition for work-related education and training costs. Certain home office costs. Spread Your Income Around One advantage of having multiple side gigs is that you get different payments from different clients and employers. This allows you to devote specific payments to specific financial purposes, whether it's paying down debt, saving for a home, building an emergency fund or buying a work vehicle. According to a UMB Financial blog post, devoting different side gig payments to different accounts has the dual benefit of helping you meet financial goals while also making it easier to keep track of your money. Consult a Financial Advisor As you take on more side gigs — and earn more money — consider hiring a financial advisor. The right professional can help you manage different accounts, create a budget specific to gig income and offer guidance on how to build a secure financial future. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 5 Cities You Need To Consider If You're Retiring in 2025 6 Big Shakeups Coming to Social Security in 2025 This article originally appeared on 4 Money Management Tips for Working Multiple Side Gigs
CNBC
4 minutes ago
- CNBC
Here's what's keeping home buyers on the sidelines even as mortgage rates hit a 10-month low
Lorene Cowan, 44, thought she would own a home by now. However, in New York City, where Cowan lives and works, home prices have soared beyond reach. "I would love to buy a home, that's the next step," said Cowan, a business and life coach. But "in New York, the entry in became so much more difficult," she said. In fact, New York notched the highest annual gain of all the metropolises in the latest Case-Shiller 20-city composite, up 7.4% in May compared to the prior year. The median listing price of a home in New York City is now more than $829,000, up 3.8% year over year, according to More from Personal Finance:Mortgage rates have made a 'substantial improvement'Fewer young adults reach key life, money milestones'Job hugging' has replaced job-hopping, consultants say In recent years, rising prices have made it harder for first-time home buyers to enter the market nearly nationwide, causing many millennials like Cowan to delay that traditional milestone. With record-high home prices and limited inventory, even a recent drop in mortgage rates has done little to change that affordability equation. "This is holding back first-time home buyers from entering the market," Lawrence Yun, chief economist of the National Association of Realtors, said in a recent statement. Across the country, the median age of first-time homeowners is now 38 years old, an all-time high, according to a 2024 report by the National Association of Realtors. In the 1980s, the typical first-time buyer was in their late 20s. And first-time buyers currently make up just 24% of the market, the lowest share on record, according to NAR. Millennials and Gen Z still believe in the dream of homeownership as a wealth-building opportunity and an achievement, said Matt Vernon, head of consumer lending at Bank of America. "It's just taking longer for them." Higher mortgage rates have also helped keep first-time homebuyers on the sidelines. Although mortgage rates fell to their lowest level since October, the average rate for a 30-year, fixed-rate mortgage is still just above 6.5%, according to Freddie Mac — a big leap from the below-3% levels near the start of the pandemic. "The American consumer has gotten very used to the low-rate environment that has spanned over a decade," said Bank of America's Vernon. According to Bank of America's latest homebuyer insights study, 60% of current homeowners and prospective buyers — a three-year high — said they're unsure whether now is the right time to buy. "Not knowing if rates are going to come down or go up is adding to the uncertainty in the marketplace," Vernon said. Where rates could be headed is key. Fed Chair Jerome Powell said at a news conference in July that the Federal Reserve hadn't yet determined whether it would cut its benchmark rate at its September meeting. However, even if the central bank does cut rates, "it's not a guarantee that mortgage rates are going to fall and make housing more affordable," said Ashley Weeks, a wealth strategist at TD Wealth. "Mortgage rates are more directly tied to the 10-year Treasury, so it's entirely possible mortgage rates remain flat or even increase regardless of where the Fed moves in September," Weeks said. Still, many believe lower rates will come and that will help ease the housing affordability problem. Roughly 75% of prospective homebuyers expect home prices and interest rates to fall and are waiting until then to buy a new home, Bank of America also found in its survey of 2,000 adults in March and April. About one-third, or 32%, of Americans said they would need mortgage rates to fall below 6% to feel comfortable buying this year, according to another recent report by Bankrate. However, more than half — 51% — of those polled said they wouldn't buy this year at any mortgage rate, a whopping 13-percentage point jump from Bankrate's 2024 survey.
Business Wire
33 minutes ago
- Business Wire
PPG recognized in Newsweek's America's Greatest Companies 2025 list
PITTSBURGH--(BUSINESS WIRE)--PPG (NYSE:PPG) today announced that it has been named to Newsweek magazine's inaugural America's Greatest Companies 2025 list. The list recognizes 650 U.S. companies that are operating at the highest caliber when it comes to business performance. 'PPG prides itself on its workplace culture, operational excellence and financial stability, which is why we're honored to be included among the greatest American companies,' said Bryan Iams, PPG vice president and chief communications officer. 'As a leading manufacturer of paints, coatings and specialty products, we work to ensure that we're leveraging the strengths of our 45,000 employees to deliver innovative, industry-leading solutions to our customers as we continue to protect and beautify the world.' Newsweek's America's Greatest Companies 2025 recognizes the nation's leading corporations through an in-depth analysis of their performance across four key pillars of excellence: financial strength and market performance, dedication to the American workforce, track record of innovation, and commitment to environmental sustainability and corporate ethics. Companies must be listed on a U.S. exchange, have their main office in the U.S., and report revenue exceeding $75 million in 2024. PPG: WE PROTECT AND BEAUTIFY THE WORLD® At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and specialty materials that our customers have trusted for more than 140 years. Through dedication and creativity, we solve our customers' biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we operate and innovate in more than 70 countries and reported net sales of $15.8 billion in 2024. We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets. To learn more, visit The PPG Logo and We protect and beautify the world are registered trademarks of PPG Industries Ohio, Inc. CATEGORY Corporate
