How Millennial and Gen X Parents Are Shaping the Markets Targeting Their Children.

Marketers may position Generation Alpha as the next big consumer cohort, but the real power behind their spending lies firmly with their Millennial and Gen X parents. From the designer sneakers children wear to the AI-powered math apps they use, it is parents who dictate the purchases—and, by extension, the market trends. For these parents, spending on their children has become a projection of their own aspirations, fears, and ambitions.

In the most affluent countries, such as the United States, the cost of raising a child to age 18 now exceeds $310,000, and in the United Kingdom, the figure surpasses $332,000 (£260,000) for couples. These estimates, which cover basic needs such as housing, food, education, and childcare, only tell part of the story. For affluent Millennial and Gen X parents, discretionary spending—on private tutoring, AI-powered learning apps, luxury children’s goods, and elite summer programs—adds a new, fast-expanding layer. What was once considered optional is increasingly framed as essential, as parents project their ambitions and anxieties through their children’s consumption.

In Southeast Asia, the same pattern is accelerating. In Singapore, Indonesia, Thailand, Vietnam, and the Philippines, rising affluence is fueling demand for premium education, designer children’s fashion, and curated experiences. Parents are investing heavily in AI-powered tutoring platforms, coding bootcamps, and high-end family travel, viewing these as critical to giving their children a competitive advantage. These purchases are not merely about comfort or entertainment; they are treated as stepping stones toward social mobility and status preservation.

This behaviour—widely referred to as “projection spending”—is now a defining force in markets ranging from luxury retail to EdTech. By channelling their ambitions, values, and anxieties through their children’s consumption, Millennial and Gen X parents are reshaping sectors that were once thought to target only youth consumers. The economic power in the so-called Gen Alpha economy resides firmly with the generations raising them.