Bloomberg Businessweek: "Gen Alpha Arrives With Very Grown Up Spending Power"

Date: February 23, 2026
Hosts: Carol Massar & Tim Stenovec
Guest: Stacy Vanek Smith, Businessweek Columnist

Episode Overview

This episode focuses on Generation Alpha—the cohort born roughly from 2010 onward—and their unprecedented direct spending power, changing family dynamics, and how coming of age during the pandemic has shaped their outlook and abilities. The discussion uncovers both the strengths and challenges Gen Alpha brings, from their digital savviness to anxieties surrounding their social development and future impact on the economy.

Key Discussion Points & Insights

1. Defining Gen Alpha and the Pandemic's Impact

• Major Life Milestones in Lockdown:

  • Many Gen Alpha kids experienced formative years via screens during the pandemic, impacting both social development and learning.
  • "A lot of these kids came of age and experienced big life milestones during the pandemic inside through screens. As a result, there are issues with socialization... but at the same time, this generation shows itself to be very good at teamwork, also very entrepreneurial." – Stacy Vanek Smith (01:53)

• Digital Natives with Real World Skills:

  • Gen Alpha’s comfort and proficiency with technology is highlighted as both a potential risk (screen time/social skills) and a strength (entrepreneurial agility, adaptability to AI and automation).

2. Entrepreneurial Spirit and Online Influence

• Online Businesses & Social Media:

  • The guest recounts stories like Gunner and Lux, a jewelry brand started by a 5-year-old and her father that gained attention and commercial success through Instagram.
  • "She was only five and she was making jewelry out of her plastic toys and her dad put pictures of it on Instagram and then she was doing deals with Barneys... they sell thousands of pieces now." – Tim Stenovec (03:25)

• Influencer Culture and Parental Roles:

  • Discussion on how parents nurture (or push) children into having an online “creator” presence, sometimes blurring boundaries between childhood and business.
  • "There are kids whose parents are clearly enabling them to become creators and like want to be influencers... What are we doing to them in that process?" – Stacy Vanek Smith (03:06)

3. Spending Power & Family Decision-Making

• Financial Voice in Households:

  • Gen Alpha wields approximately $100 billion in direct spending power in the US (ages 1-16), having a say in choices like travel, food, and streaming services—far more than previous generations.
  • "Apparently these kids just have a huge say over travel, food, streaming services. Just a much bigger voice that... I mean, when I was growing up, my parents did not consult me on any purchases." – Tim Stenovec (04:38)

• Anecdotes of Independence:

  • The conversation turns personal, with stories about children expressing strong preferences for family vacations, demonstrating how young kids now influence household spending.
  • “My 7 year old did tell us this week... we should have gone on vacation this week.” – Stacy Vanek Smith (05:36)

4. Societal Shifts and Generational Differences

• Changing Attitudes & Criticism:

  • Gen Alpha is both celebrated and scrutinized as perhaps the most heavily analyzed cohort due to the unique pandemic context and the looming technological revolution.
  • Criticism includes concerns from teachers about discipline and respect for authority, but there is also recognition of adaptability and resilience.

• Comparison with Previous Generations:

  • The group discusses whether the attention, hype, and worry Gen Alpha receives is unique compared to how society regarded millennials or Gen Z.
  • "I think we are definitely talking about them differently because... we all went through the pandemic and maybe in certain ways are still processing it, both as an economy and a society. I think the kids became a focus because we could at least look at kids and worry about them..." – Tim Stenovec (07:04)

5. Resilience versus Setbacks

• Academic and Social Gaps:
  • Concerns remain about academic setbacks in reading and math due to the pandemic.
• Resilience Through Change:
  • Despite setbacks, this generation is seen as being better able to adapt to rapid change, since it’s been their norm.
  • "They've undergone such enormous change and transformation... they're probably better able to adapt to shifts and huge changes than the rest of us were, simply because that is the water they grew up swimming in." – Tim Stenovec (08:02)

Memorable Quotes & Moments

• On Entrepreneurship at a Young Age
  "This jewelry business, Gunner and Lux. She was only five and she was making jewelry out of her plastic toys... then she was doing deals with Barneys." – Tim Stenovec (03:25)

• On Influence in the Household
  "A hundred billion dollars in direct spending power... these kids just a huge say over travel, food, streaming services." – Tim Stenovec (04:38)

• Parental Reflections
  "My 7 year old did tell us... we should have gone on vacation this week. Where should we have taken this vacation? And he said, to California, because then I can wear shorts." – Stacy Vanek Smith (05:36)

• On Resilience
  "They've undergone such enormous change and transformation... They're probably better able to adapt to shifts and huge changes than the rest of us were." – Tim Stenovec (08:02)

Timestamps for Key Segments

• [01:21] Start of Gen Alpha discussion
• [03:25] Story of young entrepreneurship (Gunner and Lux)
• [04:38] Gen Alpha’s spending power and influence
• [05:36] Parental anecdotes showing children’s influence
• [07:04] How society talks about Gen Alpha differently
• [08:02] Observations on resilience and adaptability

Conclusion

This episode provides a nuanced look at Gen Alpha, spotlighting their advanced digital skills, emerging economic influence, and capacity for resilience amid unique societal and economic pressures. The hosts and guest balance concerns over excessive screen time and social development with optimism about Gen Alpha’s entrepreneurial spirit and ability to thrive in a technology-driven future.