Children today are often described as “digital natives.” Gen Alpha (born in 2010 and onwards) have grown up surrounded by Internet-enabled technology, making them naturally adept at using digital tools. From as young as three years old, many are playing online games and watching videos. Some children under eight can already make online purchases independently, and by age 10, many have a basic understanding of programming and AI tools. But when and how do they start monetising their digital activities?
A new era of online earning
A growing number of children are no longer just passive consumers of digital content—they are turning the Internet into a platform for self-expression and income generation. Research shows that over 70% of young people in the U.S. and Europe consider having their own earnings important, and 42% of teenagers are already making money online.
So, how are Gen Alpha kids making their first digital earnings, and what potential cyber threats do they face?
The rise of kid influencers
The “kidfluencer” phenomenon is reshaping the digital landscape. Young bloggers with large followings and brand collaborations dominate platforms like YouTube, Instagram, and TikTok. The Top 5 global kid influencers collectively have hundreds of millions of subscribers, with annual earnings ranging from $10 million to $30 million.
Brand partnerships are the most common way for young influencers to monetise their content. Companies like Mattel, Hasbro, and Lego actively collaborate with child bloggers to reach younger audiences. Even those with smaller audiences can attract advertisers if their content is engaging and trend-driven.
However, young influencers are also prime targets for cyber threats. Phishing scams disguised as brand collaboration offers are common, tricking children into clicking malicious links or downloading malware. Attackers also create fake brand pages that closely resemble legitimate ones. Parents and young bloggers should be vigilant, verifying sources before responding to messages and using cybersecurity solutions to prevent malicious attacks.
Gaming as a path to digital income
When discussing children and gaming, the focus often centres on how much time and money they spend. However, many young gamers have found ways to monetise their passion. Opportunities include coding, writing reviews, testing games, and even “skin gambling.” A select few even enter the professional esports scene, competing in international tournaments for large cash prizes. The youngest winner of the International Dota 2 Championship was just 16 years old.
Children make up a significant portion of the online gaming community. In some major gaming platforms like Roblox and Minecraft, over 40% of users are minors. Unfortunately, this makes them prime targets for cybercriminals. In the first half of 2024, cyberattacks targeting young gamers increased by 30% compared to 2023.
To protect their earnings and personal data, young gamers should use strong passwords, avoid downloading from unreliable sources, and implement financial security measures to prevent fraud.
The growing popularity of cryptocurrency and online sales
Despite regulatory restrictions, cryptocurrency trading and e-commerce are becoming popular among children.
Cryptocurrency trading involves buying and selling digital assets for profit. While most major trading platforms like Binance and Coinbase require users to be 18 or older, children can participate through custodial accounts managed by parents or specialised platforms designed for younger traders. In these cases, parental supervision is essential to ensure safe and responsible transactions.
Online selling is another avenue for young entrepreneurs. Children use platforms like eBay and Amazon to sell toys, books, clothing, and handmade products. However, they must use parent-supervised accounts to comply with platform regulations.
Online transactions, whether through crypto trading or e-commerce, expose young users to financial fraud. Cybercriminals often create fake websites designed to steal banking information or take over crypto wallets. To avoid scams, children and parents should be cautious about where they enter personal data, PIN codes, or passwords. Using secure payment protection solutions can help prevent credit card fraud and account takeovers.
Cyber awareness is key to financial independence
Children’s financial independence online is on the rise, shaping the digital habits of Gen Alpha. While the Internet provides exciting opportunities for young users to earn money, it also demands an adult-level awareness of cybersecurity risks. By staying informed and implementing protective measures, children can make the most of their digital experiences safely and successfully.
Insights in this article were provided by Kaspersky.
