Children in the UK are receiving 25% more pocket money than they were in 2021, outpacing inflation, according to the new Gen Alpha report from global consumer insights platform, GWI.
The research, which surveyed over 20,000 Gen Alphas globally, revealed that pocket money allowances have increased by at least 10% across nine of the 18 markets tracked over the past four years.
With that rise comes a shift in purchase power for the younger generation that brands and marketers need to be aware of, especially as the oldest Gen Alphas move towards more adult independence when they turn 16.
Self-expression is going digital
A digitally native generation, it’s no surprise that Gen Alpha’s rise in purchasing power is matched by a jump in online spending habits. In fact, the share of 12-15-year-olds buying products online each week has grown by 40% over the last four years – from 15% in 2021 to 21% in 2025.
In short, online shopping and shopping through social media is not a nice to have for Gen Alpha, it’s the default, especially for the younger end of the Gen Alpha scale.
While 12-15-year-olds primarily spend their cash on snacks and fast food (63%), and clothes and accessories (41%), almost one in five (19%) 8-to-11-year-olds splurge their pocket money on virtual in-game items like skins and power-ups, almost rivalling the 23% who buy real-world clothing.
For marketers, this is a clear sign that self-expression is going digital, and the path to Gen Alpha lies in virtual spaces where they socialise, play and shop.
The new report also revealed that among 13-15-year-olds on TikTok, the number making an online purchase each week is up 18% year-on-year since 2023, underlining the platform’s growing influence on younger users’ spending behaviours and proving that it’s essential for marketers to show up where Gen Alpha already scrolls.
Creativity sells, gender norms don’t
Despite the rise in purchasing virtual goods, creative tools like stationery and art supplies remain a top-three spending priority for both younger (36%) and older (39%) Gen Alpha kids.
Toys and collectibles also remain popular, especially among 8-11-year-olds, where nearly half (47%) choose to spend on physical play, proving that hands-on creativity continues to play a key role in how kids express themselves.
Where Gen Alpha finds inspiration for this creativity, however, leads us straight back to social.
The report also found that other creative pursuits like beauty, makeup and fashion are climbing the ranks of Gen Alpha’s top interests, inspired by online content – in the US 44% of teenage girls have watched a makeup video in the last week alone.
But it’s not just girls who are pursuing creative avenues. In fact, in the UK, the share of teen boys interested in beauty or makeup has more than doubled since 2022, from 4% to 9%, sending a strong signal to brands – disregard gender norms if you want to resonate with Gen Alpha.
