Gone are the days when children were limited to doing a paper round or washing cars to earn pocket money.
A growing number of youngsters are now running their own businesses online to earn extra cash, according to Visa.
Almost 80 per cent of children under 13 earn money, with half using technology to generate income and a quarter using social media, says the payment provider.
Children born after 2009 are known as ‘Generation Alpha’ – the first group to grow up surrounded by technology. Mehret Habteab, a vice president at Visa, says: ‘Our research shows that children as young as eight are already finding creative ways to earn money.’
Cashing in: Almost 80% of children under 13 earn money, with half using technology to generate income and a quarter using social media
Sharon Davies, head of education charity Young Enterprise, says: ‘Starting a business allows children to apply their learning, using skills such as problem solving and communication.’
Three fifths of Generation Alpha believe that AI, virtual reality and smart assistants will be integral to their future careers.
Skye Ellin, 13, from Stourbridge, West Midlands, started her own business – Skye’s sweetsntreats – during the pandemic. It sells confectionery boxes on Facebook and last year generated a profit of £1,200. Prices range from £3 for a cone of sweets to £10 for a big box.
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 stores 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 then sells his products at local markets for £2 per item.
‘My business idea came from my love for toys. It’s the perfect way for me to make pocket money and do something fun,’ he says.
However, it’s important children still learn essential financial skills says Justin Modray, of Candid Financial Advice, adding: ‘Technology will increasingly influence how children learn about earning, making and looking after money but we must ensure that they don’t ignore the basics of saving and borrowing.’
