They’re too young for jobs, but not too young to shape the economy. Gen Alpha’s spending influence is real and growing, with new data from public relations firm DKC showing that children in this age range (8-14) impact nearly half of their households’ purchasing decisions. 

When ads become content: The new norm for Gen Alpha

Unlike any generation before, Gen Alpha never experienced a time without pervasive digital influence. Social media is where entertainment and ads mix, sometimes reaching children who might not fully understand they’re being marketed to.

In the past, a child hearing, “No, you don’t need that,” from a parent learned to manage impulses tangibly and productively. The store aisle was a controlled environment, and adults helped set limits that felt real and immediate. 

But today’s reality is different, and on social media, that kind of guidance doesn’t exist for Gen Alpha. Children as young as age 8 or 9 are bombarded with powerful, direct and highly engaging visual corporate messages that turn products and commercial lifestyles into objects of near-obsessive admiration. For today’s young generation, the line dividing entertainment from advertising has effectively vanished. Corporate messages no longer knock before suggesting consumerism; now, they live inside the content itself with very little oversight or regulation.

Teens see thousands of targeted online ads every day

Children are uniquely vulnerable to marketing because their skills at critical thinking and impulse control are still developing. The constant stream of familiar faces, stories and product placements on social media can light up the same pleasure centers that drive adult buying habits, conditioning young minds to crave and consume in ways that can become deeply ingrained and addictive. 

Advertising for children has evolved into a multibillion-dollar industry. According to estimates shared by UNICEF, a typical 14-year-old encounters around 1,260 advertisements daily on social media. 

Brands track children’s online behavior using sophisticated algorithms and data analytics, allowing them to deliver personalized ads that target kids’ interests and emotions. This constant, tailored exposure creates strong desires in children, who then repeatedly ask their parents to buy the products—a phenomenon known as “pester power.” Parents, often giving in to avoid conflict, complete the cycle with the final purchase. 

Kids’ spending power reaches $101 billion annually in the U.S.

According to DKC, parents of kids ages 8 to 14 estimate that 42% of household purchases are swayed by their children, with Gen Alpha directly controlling $101 billion of consumer spending power. The average child in this age group has $67 a week to spend, equaling $3,484 a year—almost 50% more than in 2024, according to Axios. Gen Alpha is drawn to highly visual, interactive and community-driven entertainment. Popular platforms like YouTube, TikTok and gaming streams dominate their screen time, with many preferring short, snackable content that fits into their fast-paced digital lives.

Gen Alpha thrives on popular cultural messages that flow naturally into their everyday conversations. Living and breathing online culture, their social norms create a clear divide from Gen Z in the digital realm. This generation rejects straightforward marketing altogether. They want to see their purchases woven into stories they can follow and engage with. 

How brands speak directly to Gen Alpha through storytelling

To reach Gen Alpha, brands are moving beyond traditional ads to create immersive, narrative-driven content. MrBeast (Jimmy Donaldson) is one of the world’s top digital influencers, and among the wealthiest, proving how a single creator can build a brand worth hundreds of millions. As of 2025, his net worth is estimated to be at $1 billion, with annual earnings reportedly exceeding $100 million through YouTube ad revenue, sponsorships, merchandise and his own product lines. His success is a prime example of how creative content and smart marketing can lead to massive earnings. 

With over-the-top challenges and jaw-dropping generosity, MrBeast keeps his young fans glued to the screen. But look closer, and you’ll see brilliant marketing at work. From slick sponsorships to subtle plugs for his own brands, like Feastables and MrBeast Burger, every view is a sales opportunity.

While viral TikTok trends generate quick buzz, they rarely foster lasting loyalty. Instead, brands are becoming full-fledged media creators, producing original, high-quality videos and collaborating with influencers to build enduring digital communities that resonate with young audiences.

In today’s social media landscape, advertising has transformed into a sophisticated creative industry. Leading directors and social creators craft compelling stories that connect deeply with Gen Alpha, blending cinematic artistry with cultural relevance. This approach makes brand messages feel authentic and engaging, speaking directly to a generation raised entirely within the digital world.

For Gen Alpha, connection with brands isn’t transactional; it’s relational. This generation demands narratives that resonate and communities that feel real. Marketers today face a paradox with this demographic though: They must build relationships through storytelling and community, yet do so with heightened awareness that this audience is uniquely impressionable. Responsibility here isn’t a box to check—it’s a continuous, evolving commitment to respect the boundaries between engagement and exploitation in an environment where those lines so often disappear.

Photo by LightField Studios/Shutterstock

Spending money is an American pastime. With a national saving rate hovering around 5%, it’s clear we collectively love to spend. And honestly, being able to enjoy our wealth is a beautiful thing. It’s something more personal finance enthusiasts like me—and readers of Financial Samurai—could probably do more of.

But like with most things, moderation is key. Overspending can trap us in the rat race forever. It can increase our anxiety about job security or unexpected health issues as we live paycheck to paycheck. And if you have kids, excessive spending might even put them at a long-term disadvantage, creating a cycle of financial stress.

In this post, I want to share a personal experience that helped me understand just how emotionally difficult it can be to stop spending, even when we know we should.

That Sinking Feeling of Being Judged

After dropping our kids off at parkour class, my wife and I took a stroll to Haight-Ashbury for some ice cream at Ben & Jerry’s. It’s a nostalgic spot I first visited back circa 1993 on free cone day with a line several blocks long. Jerry Garcia from the Grateful Dead was still alive, and he was performing that day.

On our walk over, we passed funky odors and colorfully dressed folks who had just finished the Bay to Breakers race. When we finally reached the store, I asked the attendant if they had any unique flavors unavailable in grocery stores. She pointed to a sorbet, but we wanted ice cream.

Then came the sticker shock: $8.75 for one scoop, $13 for two. A waffle cone? Another $3.75. My frugal brain screamed, “This is insane! You can get a whole pint on sale for $5!” But I felt too embarrassed to back out in front of my wife. So I caved: one scoop in a waffle cone, $14 total.

We enjoyed it—triple caramel chunk—but I felt like a fool. On the walk home, I turned to my wife and said, “I’m never buying Ben & Jerry’s waffle cone ice cream again.”

The Shame of Not Spending

I didn’t stick to my frugal instincts because I didn’t want to look cheap. Even after years of being together, I still didn’t want to disappoint my wife.

This wasn’t just about ice cream. I had told her for several months that I was open to renting a house in Hawaii for our upcoming five week summer trip. When the stock market tanked in early April 2025, I figured, why not spend the money instead of losing it all in the stock market? At one point, we were down around $1 million, a gut-wrenching amount for dual unemployed parents. She agreed. YOLO and decumulate, right?

But the cheapest 4-bedroom single-family home rental I found that we both liked was $24,000 a month after taxes, utilities, and fees. Yikes! That’s a lot when we could just stay at my parents’ house for free. Sure, it’s not ideal for privacy and puts a lot of pressure on my mother as a host, but it’s great for family bonding. And $24,000 invested in our kids’ custodial accounts today could more than double to $50,000 in 11 years at a 7% return. That could help pay for college or help them buy a home.

My wife was disappointed, and I don’t blame her. Living with in-laws isn’t easy. And she knows that hosting is especially hard on my mom, who needs her space—something that’s tough to maintain with six people under one roof, especially when two of them are particularly loud and rambunctious. My wife is also the planner for all of our travel logistics, so my indecision was starting to frustrate her.

But I just couldn’t get myself to pull the trigger, even if it is within my vacation spending guide. I felt bad for letting my wife down. If you’re curious, below is the picture of the $24,000/month rental. Cute, right? But not for $24,000/month.

Tried to Spend Again After Several Big Wins

After about 35 days of painting, de-weeding, staging, and prepping our old house post-tenants, we finally sold it for a solid profit. Selling a home is often a stressful process, but we accepted a preemptive offer after a couple rounds of countering and ultimately hit my target price.

I used about 70% of the proceeds to buy the stock market dip over a 50-day stretch. First we were losing, which felt horrible given the home was such a stable investment. Eventually, the S&P 500 clawed back its full 20% loss, and I locked in gains on half our position. Our allocation for this important portfolio shifted from 100% stocks to a more balanced 60/40, as the S&P 500 returned to trading at 22X forward earnings—an expensive level in my book.

To top it all off, Millionaire Milestones made the USA TODAY bestseller list—a distinction earned by only ~0.04% of authors. I spent 2.5 months grinding away on marketing through guest posts on CNBC and MarketWatch, publishing related content on Financial Samurai, running consulting promotions, and giving interviews.

Surely, this triple win deserves a little celebration, right? I was exhausted after working so hard and taking so much risk. So I floated the idea of renting a house for a month again. YOLO, baby!

So Hard to Find Value When Booking a Vacation

My wife was cautiously optimistic. But as I searched more, I still couldn’t justify spending $24,000 for that house we looked at earlier because I really wanted a pool if we were going to shell out big bucks. Unfortunately, homes we considered with pools and views were going for $50,000 to $85,000 a month. A ridiculous sum of money. No thanks.

My wife could have cared less about a pool. She just wanted somewhere clean with two bathrooms, AC, a kitchen, and laundry that we could have to ourselves. Then we could have planned meals and family time with my parents at their convenience.

The thought of spending $24,000 on rent for just one month stung deeply, especially since I haven’t been a renter since 2002, when I was 25 years old. On top of that, it was emotionally draining to buy the dip and watch losses pile up for three to four weeks straight. Parting with that hard-earned cash felt too psychologically and financially painful.

I’m in the process of grinding back to financial independence given we bought an expensive home in 2023 and used much of our dividend income investments to do so. This realization was only made after I published this post and had some time to think about the feedback.

Took My Dad’s Advice About Spending

I even asked my dad for advice since there are a lot of vacation rental scams out there too. During the stock market crash, he said, “Stay with us.” After the recovery, I showed him new options, and he still said, “Stay with us.” So I listened, as any good son would.

As a result, we will save $24,000 on rent and now have $800/day to spend on food, activities, and more. That feels amazing! All we can eat poké here we come! But I could tell my wife wasn’t as thrilled. Ah, the feeling of disappointing her again despite the wins we had.

Ice Cream as Emotional Compensation

So when the Ben & Jerry’s attendant asked, “How many scoops?” I flashed back to all of this. I felt ashamed that I couldn’t follow through on the vacation rental. I’m the provider, gosh darn it. I didn’t want to let my wife down again. So I said yes to the overpriced cone at least.

But afterward, I still felt stupid. I knew I could get a more delicious matcha soft ice cream in a waffle cone at the mall for $6.90, or half the price.

Spending $14 on ice cream was my emotional Band-Aid for not spending $24,000 on the vacation rental. But it didn’t fully patch the wound. I still feel like I need to do more.

As someone who grew up middle class with frugal parents, there’s simply no way I can justify spending that much on a temporary living arrangement with no equity. I’ve spent too much of my life focused on building wealth, not spending it.

Besides, at least 70% of the joy of being in Hawaii comes from just being there, enjoying the weather and outdoors. I don’t plan on staying inside for most of the day.

Fear Of Being Judged Is Why We Overspend

This experience helped me realize something important: We often spend money not because we want or need to—but because we don’t want to be judged, especially by loved ones. Even after 26 years together, I still didn’t want to disappoint my wife.

Unlike some personal finance or FIRE enthusiasts, I don’t take being called or viewed as cheap as a badge of honor. Instead, I take offense to it because I’m fully spending my money according to my values. And we don’t all value the same things, so who is anybody to judge?

This need to appear generous, carefree, or successful may push us to spend more than we should. Our insecurities lead us to waste money on things we don’t value. We’re not always spending for joy, we’re spending to protect our image.

I don’t care what others think, only what my wife and children think. As men, we often work tirelessly to provide for our families, yet there are still moments when we feel like it’s not enough.

Related: Feeling Like A Burden Is A Terrible, Terrible Thing

The Solution to Overspending

The next time you feel pressure to spend, pause and revisit your core values and financial goals. If you don’t know what they are, figure them out—fast. Ask yourself: Does this expense align with who I am and what I want for my future? If the answer is no, then don’t spend. Love yourself enough to follow your values.

And if you’re in a relationship, talk it through. Being on the same page financially is important for a successful, long-term partnership. The last thing your partner wants is for you to be grouchy or regretful after spending. At the same time, you don’t want to let your partner down and feel constrained, especially if you have the funds. Resentment will only build.

In our case, the compromise I came up with is to spend weekends at my aunt’s beach house on the other side of the island to give everyone some breathing room, assuming she’s okay with that. The only problem is my aunt hasn’t said yes, yet! She’s traveling.

Another solution is to spend one or two nights at a beachfront resort in Waikiki or Kahala. I’m open to booking a Saturday night so we can make the most of the facilities on both Saturday and Sunday. Maybe we should do Friday night as well, but the kids get out from summer school at 3:30 pm on Friday, so is it really worth it? Perhaps I’m being too frugal again, but at least I’m offering up solutions. That’s progress!

Achieving Financial Freedom Is Worth The Price

Thanks to all your thoughtful feedback, I decided to write a follow-up post titled: “The Choices We Make To Achieve Financial Freedom Aren’t For Everyone.” I was able to retire in 2012 at age 34 because I made hard choices to save and invest.

What I’ve realized is that frugality is deeply ingrained in me. It’s not just a habit, it’s who I am. As a result, I find it hard to spend money on anything that doesn’t align with my values, even when I technically can afford to.

After being a homeowner since 2003, I simply can’t bring myself to pay rent—especially not for a luxury rental I don’t need. On top of that, I’m laser-focused on hitting financial independence by December 31, 2027. I made a detour in 2023 by buying a home we didn’t need, which knocked down our passive income by roughly $150,000.

Now, I’m on a mission to rebuild our passive income so it once again covers 100% of our desired living expenses. That’s why I’m not only saying no to a five-week rental this summer—I’m kicking off a no-spend challenge too. I love a good financial reset, and this one’s going to fuel me to save and invest even more for our family’s future.

With AI innovation picking up speed again, I’m also aiming to deploy more capital into private AI opportunities. One of the easiest ways I’m doing this is through Fundrise Venture, which has exposure to top-tier AI companies like OpenAI, Anthropic, Databricks, Anduril, and more.

Readers, do you think we mainly overspend because we are not secure with ourselves? Why do you think it’s so hard to stop spending despite knowing we should be saving and investing more? Is it silly to let other people judge us for how we spend our own money? What choices are you making to accelerate your path to financial freedom?

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CIT Bank has long offered some of the highest savings rates around thanks to lower overhead from not having physical branches. So if you’ve got extra cash sitting idle, now’s a great time to maximize its interest rate. CIT Bank is an affiliate partner of Financial Samurai.

To expedite your journey to financial freedom, join over 60,000 others and subscribe to the free Financial Samurai newsletter. Financial Samurai is among the largest independently-owned personal finance websites, established in 2009. Everything is written based on firsthand experience and expertise.