With some millennials already in their 40s and Gen Z almost all grown up, there's a new generation becoming economically active. Generation Alpha includes everyone born after 2010 – young people growing up in an age where digital technology is present everywhere in our daily lives. Unlike previous generations, they are digital natives by default, comfortable with smartphones, social media, and artificial intelligence (AI) from an early age.

This familiarity with technology has shifted many young people's attitudes towards jobs and earning income. Gone are the days when pocket money was the only source of funds for under-18s. Nowadays, Gen Alpha is paying its own way through the digital economy, finding innovative ways to earn money online. This trend is particularly helpful in South Africa, where we need more people employed and earning an income to sustain economic transformation, and where digitalisation offers new paths for young entrepreneurs.

How Gen Alpha is making money online

From content creation to gaming, Gen Alpha is monetising digital platforms in ways unthought of a decade ago. These sources of income include:

'Kidfluencers' and content creation

Social media platforms like YouTube, TikTok, and Instagram have produced young influencers who monetise their content through brand collaborations, sponsored content, and affiliate marketing. South African brands are now cooperating with young creators to reach more young people through channels they relate to.

Gaming and e-sports

The online games industry has expanded enormously, and several young South African game players earn a livelihood from streaming, sponsorship, and winning tournament prizes. Local gaming tournaments and e-sports leagues give game players the opportunity to capitalise on the trend.

Freelancing and digital services

Sites like Upwork and Fiverr let young people offer services like coding, graphic design, and video editing. This has led to an explosion of entrepreneurial freelancers in South Africa, who make money selling their specialist skills online.

Online retail

Most young entrepreneurs make and sell products online. They can be digital products like templates, e-books, and online courses, or physical items like clothes, art, home furnishings, hair or skincare products, toys and games, or useful gadgets. Thousands of young South Africans are using platforms like Takealot, Gumtree, and Facebook Marketplace to sell their wares.

Software development and AI

Youngsters start programming at an early age these days, and many become experts in software engineering, AI development, and blockchain technology in their teens. Initiatives like Naspers Labs are building South African digital skills, offering Gen Alpha opportunities in both freelance and salaried careers.

Social media management

Young go-getters skilled at online interactions can build careers online in digital marketing, managing influencers, and brand planning. Many South African businesses hire social media professionals to increase their presence on the web.

Cybersecurity

In response to an increasing number of cyberattacks, 'ethical hacking' has become a viable career choice. That sounds slightly scary, but it's a reputable practice. Instead of using their computer skills to hack company sites for fun (or criminal purposes), talented youngsters are hired by companies to try to breach company security software in an external cyberattack. They then report any vulnerabilities, so the company can take steps to fix gaps in their security. SA's cybersecurity sector is growing fast, and demand is rising for ethical hackers and data protection specialists.

The digital economy has risks as well as benefits

There are many benefits to earning your living from side hustles online, starting with the range of opportunities available.

• Flexibility can be important when you're young and trying to cram as much living into your day as possible. And if you work online, you usually get to set your own hours.
  
  
• Running your own business from an early age will also give you a head start learning the financial skills and other crucial lessons you'll need to be a successful entrepreneur.
  
  
• If you develop your online income streams constantly, your income has the potential to increase enormously – something you won't achieve on a set monthly salary.

On the other hand, running several businesses online expands your digital footprint significantly, putting you at higher risk from cybercriminals. You'll need to protect your digital devices with up-to-date security software and stay informed about trending scams or cyberattacks. You'll most likely be interacting with customers and suppliers almost exclusively online, so you need to verify their identities and check that they're legitimate too, to make cyberfraud easier to spot and avoid.

Running a business solo is stressful – and managing several income streams even more so. Make sure you schedule proper breaks for yourself with regular downtime, or you risk burnout and damage to your mental well-being.

Ethical and legal considerations

South Africa has some strict legislation regarding child labour and online businesses.

• Minimum age for employment
  You may not employ anyone younger than 15 in a full-time job, except in certain specific cases. However, online earnings and children working for themselves occupy a legal grey area. If you're a parent whose child runs their own business online, you need to check that it complies with legal requirements.
  
  
• Online business and tax laws
  Your business must comply with tax legislation, business registration requirements, and consumer protection laws.
  
  
• Cybersecurity and privacy laws
  SA's Protection of Personal Information Act dictates how you must handle personal information. Have the security tools in place to protect customers' data privacy when they do business with you online.

The digital revolution has opened up a world of potential income streams for Gen Alpha – and anyone else who understands the possibilities of the latest technology. Explore all your online earning opportunities, and you could turn a side hustle into a full-time career.

If you're starting your own business online, consult our Small Business Services Team for all your business banking needs. Get guidance and support from the Essential Guide for Small-business Owners. Learn more about business solutions, networking, marketing, and funding by joining SimplyBiz, powered by Nedbank.

For everything you need to manage multiple digital income streams, from smart devices and accessories to prepaid packages for data, voice calls, and SMSes, you can shop on your phone on Avo SuperShop, and have your order delivered to your door.