They may be young, but their impact is already profound. Members of this generation not only have more of their own money to spend than previous generations, but also wield unprecedented power in influencing their parents’ purchasing decisions.

These are the kids of the boomers, “forever young” parents who envision a healthy family as a democratic body in which children have a vote and help sway decisions—from what cereal and jeans to buy to where to vacation and which family car to choose.

Gen Y kids also benefit from boomer parents’ guilt over lack of quality time, which translates into more material goods, spending money and voting power.

The members of this generation illustrate a phenomenon Anne Sutherland and Beth Thompson, the authors of Kidfluence (McGraw-Hill, 2003) call KAGOY: “kids are getting older younger.” Exposure to a highly diverse mass media and the Internet means kids learn about adult situations and lifestyles much earlier, and they’re heavily influenced by the style of older teens.

Kids now move beyond dolls and action figures at age 6 (a decade ago that transition occurred at age 7 or 8). Puberty begins almost a full year earlier than it did 50 years ago, likely as a result of better nutrition as well as obesity.

Gen Y is a true media cohort: The average child spends 5.5 hours a day outside school engaged in media—television, computers, movies, video games, music and print. Two-thirds of U.S. children over age 8 have a TV in their bedroom. Computers are second nature.

This is an ethnically diverse generation: 16 percent Hispanic; 15 percent black, non-Hispanic; 4 percent Asian/Pacific islander; and 64 percent white, non-Hispanic.

For Gen Y kids, TV is a primary arbiter of style that shows them what’s cool. They’re highly aware of labels and brands, but they view marketing skeptically and aren’t especially gullible.

If boomers were the “Me Generation,” members of Gen Y are the “More Generation.” Consuming is a hobby, and the line between wants and needs is seriously blurred. Gen Y kids ask their parents for what they want, and it’s often hard for boomer parents to resist. The size of the kid influence market—purchases others make as a result of their persuasion—is estimated at $200 billion to $300 billion.

• Concerns: being accepted by peers; not having enough money; hassles from parents; not being respected

• Turn-offs: store clerks who dis them or don’t take them seriously; phony pitches; technology that disappoints

• Hot buttons: exciting Web sites; color and design; e-commerce opportunities that don’t require a credit card; humor and irony; feeling older