Gone are the days when children were limited to doing a paper round or washing cars to earn pocket money.
A growing number of young people are now running their own businesses online to earn extra money, according to Visa.
Almost 80 percent of children under 13 earn money, with half using technology to generate income and a quarter using social media, the payments provider says.
Children born after 2009 are known as ‘Generation Alpha’ – the first group to grow up surrounded by technology. Mehret Habteab, vice president at Visa, says: ‘Our research shows that children as young as eight are already finding creative ways to earn money.’
Sharon Davies, head of the charity Young Enterprise, says: ‘Starting a business gives children the opportunity to apply their learning by using skills such as problem solving and communication.’
Three fifths of Generation Alpha believe that artificial intelligence, virtual reality and smart assistants will be an integral part of their future careers.
Skye Ellin, 13, from Stourbridge, West Midlands, started her own business – Skye’s Sweets – during the pandemic. It sells confectionery boxes on Facebook and last year made a profit of £1,200. Prices range from £3 for a lolly cone to £10 for a large box.
related articles
HOWEVER, MONEY CAN HELP
Skye uses artificial intelligence including ChatGPT to understand customer demand. She says: ‘My dream is to sell hundreds of boxes every week and collaborate with sweet shops and supermarkets.’
Skye is in good company, as three-quarters of Generation Alpha aspire to start their own business, according to Visa.
Among them is Jayden Wallis, nine, from Sussex, who runs a toy business called It’s a Kids World. He started selling fidget toys after seeing a gap in the market at his school.
He found a wholesaler from whom he can buy the toys at 11p each and then sells his products at local markets for £2 a piece.
‘My business idea came from my love for toys. It’s the perfect way for me to earn pocket money and do something fun,’ he says.
However, it is important that children still learn important financial skills, says Justin Modray, of Candid Financial Advice, adding: ‘Technology will increasingly influence how children learn about making, earning and looking after money, but we need to ensure that they do not ignore the basics of savings and loans.’
Some links in this article may be affiliate links. If you click on them, we may earn a small commission. It helps us fund This Is Money and keep them free to use. We do not write articles to promote products. We do not allow a commercial relationship to affect our editorial independence.