How to Get Money as a 12-Year-Old

It is possible for 12-year-olds to begin learning valuable lessons in financial responsibility and independence by earning their own money. Engaging in age-appropriate money-making activities can provide practical experience in managing resources. Parental guidance and supervision are important in all endeavors to ensure safety and provide instruction. This experience can lay a foundation for future financial understanding.

Earning Money with Household Chores and Allowance

Earning money within the home environment offers a structured way for a 12-year-old to gain financial understanding. This involves distinguishing between regular household contributions, which are expected as part of family life, and extra tasks that can be compensated. Parents can establish a clear system where specific, larger chores are assigned a monetary value. Examples of these paid tasks might include deep cleaning areas like the garage or basement, organizing extensive storage spaces, or performing significant yard work beyond routine maintenance, such as preparing a garden bed.

A system for earning could involve a chore chart or a written list of tasks with agreed-upon payment rates, similar to a simple contract. For instance, washing the family car might earn a set amount, or completing a major organizing project could yield a pre-determined payment. Allowance can serve as a base amount, supplemented by these additional earning opportunities. Clear communication between the 12-year-old and their parents about expectations and payment structures helps ensure a positive learning experience.

Providing Services for Neighbors and Community

Extending earning efforts to neighbors and the broader community can open up additional opportunities for a 12-year-old. These services involve age-appropriate tasks helpful to others. Common examples include various forms of yard work, such as raking leaves, watering plants, or basic weeding, especially during peak seasons. Other services could involve pet sitting for friendly animals, washing cars, or running light errands for elderly neighbors, like retrieving mail or newspapers.

Approaching potential clients should always involve parental knowledge and, ideally, an initial introduction by a parent to ensure safety and establish trust. Setting fair prices for services is important; for example, yard work might be priced per hour, perhaps ranging from $10 to $20 depending on the task’s difficulty and local rates in the area. Reliability, good communication with the client, and performing a thorough job are important for building a good reputation and securing repeat business. Parental supervision is essential for all jobs, especially concerning safety precautions like never entering a stranger’s home alone and ensuring parents are aware of all job details and locations.

Any income earned from providing these services is considered self-employment income. If a 12-year-old’s net earnings from self-employment reach $400 or more in a year, they are required to file a tax return and pay self-employment taxes, which fund Social Security and Medicare. While most 12-year-olds may not earn this much, tracking income and expenses is a valuable practice for financial literacy and for understanding potential future tax obligations.

Creating and Selling Products

Creating and selling physical products offers a creative avenue for a 12-year-old to earn money and learn about entrepreneurship. This method involves developing simple, marketable items that can be produced at home. Ideas for such products include handmade cards for special occasions, friendship bracelets, or homemade baked goods like cookies or lemonade during warmer months. Small crafts or unique drawings can also be appealing to potential buyers.

Avenues for selling these products vary, ranging from a traditional lemonade stand set up in a safe, visible location, to participating in local craft fairs with parental supervision. Selling to family friends or through small online platforms, strictly under parental guidance and oversight, are also possibilities. When pricing products, it is important to consider the cost of materials used and the time invested in creation to ensure a reasonable profit margin.

Focusing on quality and presentation helps attract and retain customers. Keeping simple records of material costs, sales, and profits provides practical experience in basic accounting principles. Parental involvement is crucial in all aspects of creating and selling products, including supervising sales activities, handling money transactions, and ensuring overall safety and compliance with any local regulations for small-scale sales.