A recent survey by Prudential reveals that while many parents of Generation Alpha children in Hong Kong feel optimistic about their financial futures, a significant portion is still unprepared for the long-term financial demands of raising a family. Generation Alpha, which includes children born between 2010 and 2024, is the focal point of the study, which highlights both the current and future financial plans of their parents.
According to the Prudential Financial Wellbeing Tracker, only 33% of Gen Alpha parents in Hong Kong have established concrete financial plans for the future. In contrast, 18% of these parents have yet to begin planning. Despite this, the survey found that half of Gen Alpha parents believe they have sufficient savings for their future daily needs, a figure slightly higher than the 39% seen across the general population.
The study also indicates a slight improvement in the financial wellbeing of Hong Kong residents overall, with the Financial Wellbeing Tracker recording a score of 58.0 out of 100 for this year, up from 53.1 in 2024. This positive shift can be attributed to gains across four financial wellbeing pillars: “Security Now,” “Security in the Future,” “Financial Freedom Now,” and “Financial Freedom in the Future.” The largest improvement was seen in the “Financial Freedom Now” category, which increased by 6.1 points.
However, the survey found that financial wellbeing tends to decline with age. Those in the 18 to 35 age group scored the highest, with 62.7 points, followed by individuals aged 36 to 49 at 57.2 points, and those aged 50 to 60, who scored the lowest at 53.5 points. Respondents in the younger age brackets also reported feeling more financially liberated, with the 18-to-35 group scoring 64.4 points, compared to 52.9 points for those aged 50 to 60.
For parents of Gen Alpha children, the outlook appears slightly more favorable. They reported an average financial wellbeing score of 62.3, above the overall citywide average of 58.0. Many Gen Alpha parents also expressed confidence about their future financial freedom, though financial preparedness remains uneven. While 74% of parents place high importance on nurturing their children’s interests, and 73% encourage their children to stay true to themselves, just one-third have concrete financial plans in place. Notably, 18% have not begun planning for their children’s future at all.
Furthermore, despite a strong sense of duty to provide financial support for their children, with 94% of Gen Alpha parents stating they expect to assist their children until the age of 25, only 37% are actively saving for their children’s future. The survey also revealed that while 62% of parents plan to draw on family savings to support their children, the majority expect this wealth to last only two (63%) or three (33%) generations.
These findings paint a mixed picture of financial preparedness among Hong Kong’s Gen Alpha parents, who express optimism but may face challenges as they attempt to secure long-term financial stability for their families.
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