How Can Teenagers Start Making Money?

Teenagers often seek ways to earn money, gaining valuable experience beyond just income. Working helps young individuals develop financial literacy, budgeting skills, and a strong work ethic. It also builds responsibility, punctuality, and confidence, preparing them for future endeavors.

Traditional Part-Time Employment

Many teenagers begin their working lives through traditional part-time employment, offering a structured environment for earning income. Common roles include retail associate positions, food service worker roles, lifeguard duties, and camp counselor opportunities. These jobs provide consistent schedules and the chance to learn directly from supervisors and colleagues.

Employers typically have general requirements for teenage workers, including age restrictions that vary by state and job type. Federal law, specifically the Fair Labor Standards Act (FLSA), generally permits 14- and 15-year-olds to work in non-agricultural jobs, but with limitations on hours and types of work. For instance, during school weeks, 14- and 15-year-olds can work up to 3 hours on a school day and a maximum of 18 hours per week, with work hours usually restricted between 7 a.m. and 7 p.m., extending to 9 p.m. during summer months. Many states also require minors to obtain a work permit or employment certificate, often issued by school guidance counseling departments or state labor departments.

The application process usually involves preparing a resume and an interview. As employees, teenagers will have federal income tax withheld from their paychecks, and potentially state and local income taxes. Earnings are also subject to Social Security and Medicare taxes, known as FICA taxes, which are generally 7.65% for the employee’s portion.

Federal law allows a youth minimum wage of $4.25 per hour for employees under 20 during their first 90 days. After this period, or once the employee turns 20, they must be paid at least the federal minimum wage of $7.25 per hour, or the higher state or local minimum wage if applicable.

Online Earning Opportunities

The internet offers numerous avenues for teenagers to earn money, providing flexibility and access to a wider audience. Options include online tutoring, creating content for platforms like YouTube or blogs, participating in paid surveys, or completing virtual assistant tasks. Teenagers with specific skills can also engage in freelance writing or graphic design. Selling items on online marketplaces presents another way to generate income.

Engaging in online work requires parental supervision for younger teens to ensure safety and navigate platform rules. Many platforms and digital payment services like PayPal or Venmo have age restrictions, often requiring parental consent or involvement.

Income earned through online activities is generally considered self-employment income by the Internal Revenue Service (IRS). If a teenager’s net earnings from self-employment reach $400 or more in a tax year, they are required to file a tax return. This $400 threshold triggers the obligation to pay self-employment tax, which covers Social Security and Medicare contributions at a rate of 15.3% on net earnings.

Local Gigs and Services

Informal, community-based gigs and services provide accessible ways for teenagers to earn money directly within their neighborhoods. Classic “teenager jobs” include babysitting, pet sitting, dog walking, lawn care, and car washing. Opportunities also arise for house sitting, in-person tutoring, and various odd jobs for neighbors, such as helping with chores or running errands.

These jobs often rely on word-of-mouth advertising, with reliability and a good reputation being important for securing work. Establishing fair prices and delivering quality work helps build a strong client base. Payment is frequently received immediately, often in cash.

Income from these informal services is considered taxable by the IRS. Teenagers should keep accurate records of earnings and any related expenses for tax purposes.

Starting a Small Business

Teenagers with entrepreneurial aspirations can explore starting their own small businesses. Ideas range from selling handmade crafts or art, reselling items through “thrift flips,” or creating and selling baked goods. Unique local services, like offering tech support for seniors or assisting with party planning, also present business opportunities.

Foundational concepts involve identifying a market need and developing a product or service. Planning includes determining what to sell, identifying target customers, and setting prices. Marketing can involve social media or flyers. Excellent customer service builds a positive reputation.

Most teenage entrepreneurs operate as a sole proprietorship, the simplest business structure. Some businesses may need local permits or licenses depending on the activity and location. Local government offices can provide information on specific requirements.

Income from a small business is considered self-employment income. Business expenses directly related to generating income can generally be deducted, reducing taxable income. Establishing a separate bank account for business funds helps maintain clear financial records.