How Can a 12-Year-Old Make Money?

Earning money offers young people benefits beyond financial gain, fostering responsibility, independence, and an understanding of effort’s value. This experience provides practical lessons in goal setting, resourcefulness, and communication, cultivating skills that extend into various aspects of life. It also helps develop an appreciation for work and the satisfaction derived from achieving financial objectives.

Earning Through Local Services

Local community services offer accessible ways for a 12-year-old to earn money. Opportunities include pet care, such as dog walking or pet sitting, involving feeding, cleaning, or walking animals. For a 15-minute dog walk, rates might range from $20 to $27, while a 30-minute walk could command $27 to $40. Pet sitting visits for 30 minutes typically average around $25. These services can be offered to neighbors, family friends, or trusted contacts.

Yard work is another option, including raking leaves, watering plants, or basic weeding. Compensation for yard work can vary, often ranging from $10 to $15 per hour. Car washing services are also popular, with earnings typically between $5 and $10 per car. Supervised babysitting for younger siblings or trusted family contacts is also a possibility, with rates often between $5 and $10 per hour. Finding these opportunities typically involves word-of-mouth referrals, distributing simple flyers, or directly asking neighbors.

Any income earned from these services is generally considered taxable income. While the Internal Revenue Service (IRS) does not set a minimum age for taxation, filing requirements depend on the amount earned. For a dependent child, a tax return generally needs to be filed if their earned income exceeds the standard deduction amount, which for 2025 is typically $1,350 or earned income plus $450, whichever is greater, up to the full standard deduction. If a 12-year-old earns $400 or more from self-employment activities, they might also be responsible for Social Security and Medicare taxes. Parents commonly oversee the financial tracking and reporting for their minor children’s earnings, maintaining records of income and related expenses.

Creating and Selling Products

Creating and selling tangible products, or selling unneeded items, is another way for a 12-year-old to earn income. A classic example is a lemonade stand, providing hands-on business experience. Simple crafts, such as handmade cards, friendship bracelets, or small painted rocks, can also be produced and sold. Baking treats for sale is another option, though local regulations regarding food sales can vary.

When selling homemade items, consider material costs to ensure profit. Pricing involves calculating material costs and adding a markup for time and effort. Venues for selling these items can include neighborhood sidewalks, local garage sales, or community events, often with parental supervision. Some community-organized children’s entrepreneur markets exist, which provide structured environments for young sellers, though some may have specific rules regarding product types or adult involvement.

Navigating regulations for selling products can be complex, as requirements for permits or licenses, particularly for food items, differ significantly by local jurisdiction. While some areas might have specific allowances for small-scale operations by minors, others could require permits similar to larger businesses. For instance, some states allow the sale of homemade baked goods under “cottage food laws,” but these often come with specific stipulations regarding labeling or preparation. For homemade crafts, a sales tax license might be required to collect and remit sales tax.

Exploring Digital Opportunities

Digital avenues for earning money require careful consideration due to age restrictions on most online platforms and the importance of online safety. Many online marketplaces, freelancing websites, and content creation platforms have strict age requirements, often mandating users be at least 13, 16, or 18 years old to create accounts or engage in transactions. For example, platforms like eBay and Amazon typically require users to be 18, although a minor can often sell through a parent’s account with explicit permission and supervision. Similarly, Etsy allows users aged 13-17 to sell, provided a parent or guardian is listed as the shop owner and their payment information is used.

Given these limitations, legitimate digital opportunities are best pursued under direct parental involvement. This might include assisting a parent with basic tasks for a family-run online project, such as contributing to a blog or managing aspects of a social media account. While some age-appropriate online survey opportunities exist, they typically do not involve significant cash earnings and should be approached with caution to ensure legitimacy and protect personal information. For any online activity involving money, parental oversight is paramount to ensure online safety, privacy, and compliance with platform terms of service.