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By Jess Sharp, Money Team

Traditionally, financial power in a household rests with the parents, who decide how the money is spent, pay the bills and, if they’re lucky enough, put some of it away in an emergency fund.

However, according to research, young children are gradually becoming the “most influential financial forces” in their families.

Generation Alpha, born from 2010 onwards, is earning and saving more than ever before and is encouraging their parents to do the same, prepaid debit card app GoHenry’s latest Youth Economy report has found.

With nearly one in 10 children already saving for a house, their proactive approach to money encourages parents to also think more carefully about how much they save.

One in five parents said their children influenced them to save more. Two-thirds said they discovered and purchased new brands thanks to their children using companies that align with their values.

GoHenry has discovered that part of Generation Alpha’s financial fortunes can be attributed to social media. Many children have grown up watching bedroom businesses boom online.

One in three children have already started a part-time job or are planning to do so, with 29% motivated to do so in order to save in the future.

Combined, the generation has spending power of £3.3 billion, the report said.

Last year, children aged between six and 14 earned £193 million and saved £20.5 million in savings, the report said.

Here are some of the top ways they spent their money through GoHenry:

• PlayStation proved to be the top shop for Gen Alpha, with a total spend of £3.9 million last year.
• Online giant Amazon is also in the top 10 with a total spend of £2.3m;
• Shein led the online fashion space with total spend of £1.5m;
• The generation also spent more than £3 million on food delivery services;
• Girls spent £4 million on health and beauty products.

What impact could Generation Alpha have on the economy as they get older?

Louise Hill, CEO and co-founder of GoHenry, told the Money team that Generation Alpha is already “shaking things up” and has the potential to become the “most economically powerful generation” ever.

“Gen Alpha is quickly becoming the most influential financial force in their households. By influencing their parents to budget more effectively and spend more responsibly, these children are changing the face of family finances,” she said.

“What’s particularly exciting is their future-oriented approach to money – whether it’s saving for something special or even starting a part-time job, they show us what smart financial habits look like.”

She explained that a solid financial education is crucial to achieving her potential.

“The older they get, the greater their impact on the economy and retail – particularly on the way we think about purchases, including more sustainable shopping,” Ms Hill added.

“Gen Alpha knows what she wants and she pushes her families to support brands that align with her values.

“For brands looking to connect with this generation, social media is the way to go.”