• 4 Pocket Allowance

A Business Case for More Allowance

Updated: Aug 4, 2019

As your children get older, chances are the cost of wants have been increasing. They may even try to convince you that they need a larger amount for their allowance. Instead of getting frustrated, this is a great opportunity for them to learn something new.

They want more money? Give them the opportunity to state their reasons why. Ask them to create a budget for you to lay out all their expenses and how an increase in allowance would help cover these expenses. Sometimes when children have to physically write what their needs are, it becomes painfully obvious how ridiculous it may seem.

They may want more money because they want to take their girlfriend out on dates, but when you have to write down that that is the reason why it may start to seem foolish to ask their parents to help them pay for this. This really helps them distinguish wants from needs.

Another great exercise for them to partake in is having them list out their responsibilities. Do their responsibilities really deserve a higher allowance? If not, give them the opportunity to talk about the more responsibilities that they will take on to justify a larger allowance.

Essentially, your children will need to build a business case for their effort. And not one that is founded on because their friends’ parents give them more money than what they get. This exercise helps them work on their debate skills and gives them a glimpse on how to create a business plan. Give them an opportunity to research their case and give them a due date to present to you and your spouse. While you may not be able to give them what they ask for, you may be surprised to find that you can come to a compromise. A solution where both sides are happy. And your children will appreciate it more that you took the time to hear their sides and build an agreement rather than being quick to say no.

A business case for more allowance, Ideas for parents about allowances and teaching kids about money and financial literacy, #4PocketAllowance

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