Generation Alpha: Wealth Could Come Easy, But What Could Go Very Wrong

Probably the last generation in America to have it "easy" was us Boomers. 

The post-WWII economic boom was kicking in. College opened up to us and was cheap. Investing, not just surviving, was doable. And we became the wealthiest generation in America. At least so far.

Members of Generation Alpha - born between 2010 and 2024 - could outdo us. A recent PwC survey found two things:

These kids are entrepreneurs from the get-go. 86% earn their own money.

They are one with technology. It's like breathing air for them. 38% use AI tools for fun.

But much could go wrong along the way. 

As CNBC cautions, pareents have to guide Alphas to invest the money, not get caught up in consumerism. For big spenders even something as basic as financial security - never mind acquisition of wealth - has been unbundled from high earning power. Up to 40% of those grossing $300k - $500k annually live paycheck to paycheck.

Also, despite the myriad grim warnings about the unmarketability of many college degrees, too many of them are still headed there. Billionaire venture captialist Peter Thiel has put his money where his recommendation is to skip college. His two-year, $250,000 fellowship is for those with an idea they want to try out instead of doing college. 

Another possible obstacle is that almost 90% want to earn a living in a creative capacity. Beware.

If you've ever been employed in those lucrative knowledge-work positions you know power determines how tasks get done. Not your innovative ideas, at least not until you get power. On Blind, the professional anonymous network for techies, it's common for posters to lament rejection of their recomendations to improve processes. The power tier wants things as they are, not a fix. That creative type could wind up in a penalty box.

Meanwhile, those traditionally creative fields such as music, acting and writing are both glutted and being wiped out by AI. 

In addition, more of the old standbys for economic-class mobility are downsizing. As law firm Paul, Weiss partner Brad Karp predicted in Lawyer Monthly last year, because of AI:

Demand for entry-level lawyers will be significantly reduced. Already it's down 7.5%.

Certain lucrative practices could evolve into commodities. So, even if you got in and rose in the ranks you could still be knocked out of your million-dolloars equity partner pay slots. De-equitization is more and more probable. The big money was short-lived.

Yes, before AI, it was possible and downright probable for brilliant driven lawyers such as Karp to navigate from the middle class to affluence. Currently, don't bet on it. 

Management consulting, which had been among the first stops of Ivy graduates, is being hollowed out.

Just last month, finance/insurance lost 7,000 jobs. It might take lots more than being a Nepo baby and luck to land an internship.

The platform for building wealth for Alpha could come down to what they're already so good at: entrepreneurship. Some have sized up the wow opportunity in dumpster diving and reselling whatever. No need for them to bother trying to please The Man. 

Boomers embraced The Man - the ethos then was labeled "The Organization Man." Yes, back then, it was worth caving to conformity. I had a This Old House in Connecticut and a cottage at the Jersey Shore. 

But, for younger members of Alpha, who haven't already looped into the college experience, go  look over at the garbage dump, not traditional success formulas, for becoming rich. 

Careers. Forget all that. It’s about earning a good living, no matter what.

Complimentary consultation with Jane Genova, StreetSmart Coaching (janegenova374@gmail.com)