Beyond pocket money: How Gen Alpha is earning in the digital economy
From about the age of three, most of them play online games and watch videos regularly. Many children under the age of eight already know how to make online purchases independently. By age 10, many children have already mastered the basics of programming and AI tools. But when and how do they start to monetise their digital activities?
One trend in recent years shows that for a growing number of children, the Internet is not just a place to spend pocket money and be entertained. It's a platform for self-expression and creative money-making. For example, over 70% of young people in the U.S. and Europe claim that having their earnings is important, and 42% of teenagers are already making money online.
But just how are Gen Alpha kids all over the world making their first digital earnings, and what possible cyber threats do they face?
Blogging
Kidfluenсers with numerous subscribers and contracts signed with major brands are a hallmark of the current blogosphere. Due to the original content, ability to tap into the latest trends, as well as bright images and real-life stories, kids’ blogs are quickly gaining popularity.
The number of subscribers on the YouTube, Instagram and TikTok accounts of the Top 5 global kid influencers reaches hundreds of millions of users in some cases. Their average annual income exceeds several million dollars (top influencers’ earnings vary from $10 to $30m), and most of them are not even teenagers yet.
The most common way for a kid to monetise their blog is via advertising contracts. In recent years, the promotion strategies of many children-oriented brands were built primarily on collaboration with young bloggers. Both world-famous companies such as Mattel, Hasbro or Lego and smaller local brands are showing interest in kids blogging. Even influencers with a relatively small audience can attract some advertisers.
At the same time, kids blogging may be exposed to potential cyber risks. These can be phishing letters disguised as cooperation offers sent by attackers on behalf of alleged brand representatives. Following the link or opening a document attached to such emails/messages can result in downloading malware on the kid’s device, causing personal data or monetary loss and account theft.
To mislead users, attackers create fake brand pages that look very similar to real ones. Young bloggers and parents, who often act as their managers, should pay close attention when receiving messages from unknown senders, verifying the source and links, as well as using a reliable cybersecurity solution that prevents clicking on malicious links.
Online gaming
When it comes to children and gaming, the discussion usually centers on how much money and time children are spending while playing online. However, many young gamers have found a way to capitalise on their favourite activity: Coding, review-writing, game-tasting and skin gambling are just some examples of how children can make money in games.
A small handful of children may even become professional cybersports contestants and participate in regional and international tournaments, winning large cash prizes. For example, the youngest winner in the history of the International Dota 2 championship was only 16 years old at the time of his victory.
Minor players are gradually taking over the online gaming space; in some world-famous games like Roblox or Minecraft, their numbers exceed 40% of users. At the same time, such popular games often become a target for attackers and scammers. For instance, Kaspersky defined that the number of young players targeted by cybercriminals in online games increased by 30% in the first half of 2024 compared to 2023.
While kids rapidly improve their gaming skills and monetise them, there is also a growing need to take proactive steps to save this kind of digital income. Some actionable advice for staying safe in online games includes creating strong and secure passwords and avoiding downloads from unreliable sources. Safeguarding financial and personal data are cardinal rules to protect online earnings.
Cryptocurrency and online sales
Cryptocurrency trading and selling items online are gaining popularity among kids despite restrictions in place to protect youngsters.
Cryptocurrency trading is the process of purchasing and selling virtual currency to obtain a margin on pricing fluctuations. Legal restrictions on cryptocurrencies vary from country to country. In most countries where cryptocurrency trading is officially permitted, there is no official prohibition for minors to conduct crypto transactions.
However, major trading platforms such as Binance or Coinbase require users to be at least 18 years old to create an account. However, there are various workaround options, like custodial accounts being set up and managed by parents or specialised “Crypto For Kids’’ platforms. The main condition in these cases is that all transactions should be approved and supervised by parents or guardians.
The rules are almost the same for selling items online. Children can freely use platforms like eBay and Amazon to sell toys, books, clothes and even hand-made items. To avoid being blocked, their accounts must be created by parents or with their official permission.
Transactional activities online must usually be linked to a payment card or online wallet, which attracts the attention of fraudsters. Kaspersky cybersecurity analysis shows that fake links/websites aimed at stealing a user’s banking data or making an account or crypto wallet takeover are popular crypto scams.
Children as well as their parents should be very selective with online resources where they enter their personal data, PIN codes or passwords and always double-check special offers made online. To mitigate the risk of money loss, it’s crucial to think about online payment protection solutions that detect malicious payment links and prevent credit card details from being intercepted.
Overall, there is a noticeable uptrend in children’s financial independence on the Internet. Digital technology is already making “kids’ earnings” a common practice, greatly shaping Gen Alpha’s online habits on the one hand. On the other hand, the digital world requires children to have a truly adult attitude towards all potential cyber risks to make their digital experiences even more positive and safer.