June 4, 2020  
 
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How To Make Money When You Are A Kid

 

How to Convince Your Parents to Lend You Money

Written by Madi Gaebler for Gaebler Ventures

So you want to make money to buy an iPod? Have a great business idea and you just need a little bit of money to get it started? Before you go to your parents for cash, read this article!

There are lots of great ways kids can make money. Almost all of them, however, require some start up money for supplies and other things.
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This is when many kids look to their parents. Now some parents will look at this a great opportunity, just like you, and immediately lend you money. The majority of parents will not be so understanding and will need to be persuaded that you are trustworthy. There are many easy ways to earn your parents trust. Here are some great ways for kids to convince their parents to lend them money.

Make a Spread Sheet

Spread sheets on programs such as Excel can be an easy way to show your parents how much you are going to spend, and how much you are going to work to get it back.

First, make a list of all the supplies that you are going to need. Let's use a lemonade stand for an example. You will need 10 lemons, a bag of sugar, poster board for signs, and some coins to use for change.

Next, do some research to find out how much each of these things will cost. Be sure to consider how much you will need of a certain object as well. Once you have found out the prices for everything you need, add all of it up. Let's say when you totaled all your expenses together they will cost eleven dollars. That is how much you will need to ask your parents for.

Finally, make an educated guess on how many hours, days, or weeks it will take you to come up with the money. It is important to be realistic. If your parents don't think that you can do it in that amount of time, listen to them. It might just be that you were being a little too optimistic.

Most importantly is that when you insert all this data into a spread sheet is you make it neat. If your parents can't understand the spread sheet, they make might pass up the opportunity all together.

Show them You're Worth Their Investment

It is important to show them that you are serious about this. Create a punishment for yourself if you don't come up with money. The punishment could involve doing chores around the house or even adding more money to how much you have to pay back.

Tell them in detail how you plan to make the money to pay them back. For example, if you are planning on running a car wash, talk about what hoses you are going to use, how you are going to attract customers, and if you are hiring friends to help you out. It is important that you show them that this is going to make money.

As long as they understand that you are going to put hard work into it, and that you are willing to punish yourself if everything doesn't go as planned, they will believe that you are worth investing in.

Tell Them Why

It is very likely that they will ask why. This is an important question. It is equally important that you ask yourself this ahead of time so that you are ready for when your parents ask it.

The true reason might be so that you can buy enough new iPod so that you never have to listen to your sister again, but that is definitely not what your parents want to hear. What you should also definitely not do is outright lie to your parents. This whole process is earning your parents trust. Lying to them is not doing that.

What you do want to do is come up with good reason why you would like to buy an iPod as well as some other reasons you would like the money. iPods are lots of fun and a great reward for once you are done with your homework. Plus, it is always nice to have some money around for when you are out with your friends. All of these are reasonable answers and hopefully will satisfy your parents.

You can't exactly blame your parents for not lending you money immediately. You are the only one that can see the true potential of the idea. With these tips, your parents will see it too and you can achieve what you've set out to do as well as make a profit.

Madi Gaebler is an expert on kids and money. In her spare time, she enjoys playing soccer and spending time with her friends. Her website is FunkySnake.com.

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Conversation Board

We greatly appreciate any advice you can provide on this topic. Please contribute your insights on this topic so others can benefit.

silly sally 6/23/2010

Awesome article. Great ideas. I want to make a little money and I will try this to get a loan from my parents.


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