Gen Alpha Purchasing Power Tops $28 Billion

Gen Alpha has an estimated $28 billion in direct purchasing power, according to Numerator's latest research featured in Gen Alpha Shopping Trends to Expect in 2025 and 2026, which explores how Gen Alpha—the first cohort born entirely in the 21st century—spends and what influences their choices.

Key insights include:

• 66% of Gen Alpha parents say their child prefers shopping in-store with the top reasons being family time outside the home (47%) and the sense that shopping trips are fun (45%).
• 53% of Gen Alpha parents report giving some sort of allowance to their children with the average weekly allowance being $22 for personal spending and saving.
• Gen Alpha uses their allowance dollars to purchase snacks (59%), toys (55%), entertainment (34%), electronics (31%), and beverages (31%).
• Spending varies by age. The youngest (ages 1-5) spend most of their money on toys (64%) and snacks (51%).
• Kids ages 6–10 still focus on toys (70%), but they also spend more on snacks (65%), entertainment (35%), and electronics (29%).
• By ages 11–14, older Gen Alpha kids are using money to express independence, style, and identity with spending shifting to apparel (42%), electronics (42%), and beauty or skin-care products (30%).
• Gen Alpha consumer behavior is also clear in their quick-service restaurant preferences. Gen Alpha parents say their kids like McDonald's best overall (34%), especially among 1–5-year-olds (40%) and 6–10-year-olds (39%), thanks to kid-friendly menus and cultural staying power. Chick-fil-A ranks second at 17%, maintaining steady appeal across all groups. But by ages 11–14, choices diversify: McDonald's slips to 25% while Starbucks (10%) and Taco Bell (9%) rise in popularity.
• The top health trends that Gen Alpha parents follow for their children include limiting screen time (57%), taking vitamins and supplements (50%), and limiting processed foods (42%).
• For Gen Alpha aged 11-14, the top concern is still limiting screen time (49%) but caring for mental health (48%) is a close second.
• Gen Alpha is the first truly digital-native generation, and social media is central to how they discover products. Among 11–14-year-olds, 48% learn about new products from influencers and internet personalities, a rate that now rivals in-store discovery.
• When it comes to platforms, preferences lean strongly toward video. YouTube dominates at 56%, followed by TikTok (22%), and then Snapchat and Instagram (12% each). While adoption is highest among older Gen Alpha, even younger children are active: 43% of kids under 10 already use YouTube.