Alfred Shout was born in Wellington on August 7, 1881, the eldest child of Londoner John Richard Shout and his Irish wife Agnes Mary McGovern, nee Kelly.
He had two older half-brothers, William and Frederick McGovern, as well as eight full siblings. The Shouts owned a restaurant and boarding house in Petone shortly after Alfred's birth, and ran other catering businesses.
In the early 1890s John and Agnes threw their lot in with members of the Wellington Special Settlement Association and took up a farm in the newly opened area of forest land at Newman, just north of Eketahuna. Alfred started at Newman School in 1892. Shortly afterwards the family briefly moved to Australia, but came back to Wellington then up to the farm about 1897.
Alfred's younger brother Tom, later a one-term mayor of Raetihi and a councillor for 30 years, was to recall those years on the farm as being very arduous, especially for Alfred: "Our years at the farm were devoted to genuine hard toil. Logging-up and burning off, fencing and all manner of work, kept my father and elder brother fully occupied. There were no idle moments either for we younger boys, our whole time, outside of school hours being taken up with milking and with pulling the crosscut saw as long as daylight lasted."
Alfred may have learnt his first lessons in military tactics at Newman School. At the time of the school's jubilee in 1948, an old boy recalled that the boys would battle for possession of the boundary fence. At playtime and lunch, they formed two groups, each armed with stout wineberry branches, then set about forcing the other group from the field. The ex-pupil recalled there were many sore heads, but said the protagonists always came back for battle the following day.