How 11 Year Olds Can Actually Make Money

For an 11-year-old, engaging with money fosters responsibility and independence. Learning how money is acquired, its value, and how to manage it provides foundational skills. Early exposure to financial concepts helps children appreciate the effort to earn money and make thoughtful decisions about its use. These experiences contribute to developing sound financial habits that can last a lifetime.

Allowance and Gifting

Children commonly receive money through a regular allowance. This can be a fixed weekly amount, providing a predictable sum for budgeting and spending. Some families use a chore-based allowance, tying specific tasks to payment, which links effort to financial reward. The average allowance for an 11-year-old in the United States typically ranges from $10 to $20 per week, depending on family financial practices and expectations.

Money received as gifts also contributes to a child’s financial resources. Birthdays, holidays, and special achievements often involve monetary gifts. This income, while not earned through labor, still offers financial education. It allows children to practice saving for larger purchases or contributing to charitable causes, instilling lessons about personal finance and generosity.

Earning Money at Home

Eleven-year-olds can earn money by taking on extra tasks within their own home or for their immediate family. This differs from regular household chores, which are typically expected contributions to family life without direct payment. Paid tasks are usually specific, larger projects or responsibilities that go beyond daily duties. Examples include yard work like raking leaves, watering plants, or washing the family car.

Other opportunities might involve organizing specific areas of the home, such as a garage or a basement, or assisting with home improvement projects. Establishing a clear understanding of what tasks are paid and the agreed-upon amount helps teach the value of work and fair compensation. Payment for these tasks is typically negotiated between the child and parents, often reflecting the effort involved and the going rate for similar services if hired externally.

Earning Money in the Community

Opportunities to earn money can extend beyond the home into the community, often through informal jobs for neighbors or close family friends. These roles include pet sitting or dog walking for local residents. Yard work, such as weeding or sweeping pathways, also provides a way to earn money. Car washing services offered to neighbors are another common and accessible option.

For any work performed for individuals outside the immediate family, safety is important, and adult supervision is recommended. While formal child labor laws primarily apply to businesses, informal jobs for neighbors typically fall outside these regulations. However, the work must be non-hazardous and age-appropriate. Some children also explore entrepreneurial ventures like setting up a lemonade stand, selling handmade crafts, or offering basic tech assistance, which teaches customer service and basic business operations.

Minor income is generally subject to federal income tax. For the 2025 tax year, a dependent, including most 11-year-olds, must file a tax return if their earned income exceeds $1,350. Minors earning over $400 from self-employment income may also owe self-employment taxes.

Managing Money Earned

Learning to manage money is an important step for an 11-year-old. This involves understanding saving, spending, and sharing. A practical method is using separate jars or envelopes labeled for each purpose. One jar for “Spend” (immediate wants), another for “Save” (future purchases), and a third for “Give” (charitable causes).

Setting short-term and long-term financial goals helps an 11-year-old develop discipline and a vision for their money. Short-term goals might be saving for a toy, while longer-term goals could involve a bicycle or significant experience. This approach helps children understand financial choices and delayed gratification, reinforcing the value of earned money.