How to Get Money as a Kid: 4 Proven Ways

Learning to earn money empowers young people. Understanding how to generate and manage income responsibly provides valuable financial education. This cultivates skills like responsibility, planning, and achieving financial goals. Exploring age-appropriate avenues helps kids gain practical financial experience. This article outlines practical methods for young individuals to begin their financial journey.

Earning Money Around the House

Contributing to household responsibilities is an accessible way for kids to earn money. Many families use an allowance system, providing money for agreed-upon tasks. This helps children understand earning through consistent effort and fulfilling obligations.

Beyond allowance, specific chores can be compensated. Tasks like tidying rooms, assisting with dishes, laundry, or taking out trash can be assigned a monetary value. A child might earn a few dollars for daily room tidying or more for washing a family car. Establishing clear expectations about compensated chores and pay ensures transparency.

One-off special projects around the house also provide earning opportunities. These include larger tasks like cleaning a garage, organizing a pantry, or deep-cleaning an area. Parents can agree on fair payment for these larger endeavors, which require more effort and time. Income earned from parents for household chores is generally not considered taxable wages for federal income tax purposes.

Helping Out Neighbors

Expanding beyond the immediate household, assisting neighbors offers another avenue for earning money and fostering community connections. Yard work is a common option, with tasks like raking leaves, weeding garden beds, watering plants, or shoveling snow. Kids can offer their services to neighbors, agreeing on a price per task or per hour.

Caring for pets provides another popular service, including pet sitting when neighbors are away or daily dog walking. Responsibilities for pet sitting involve feeding, providing fresh water, and spending time with the animal, while dog walking requires regular, supervised outings. For older, more mature children, babysitting can be a significant earning opportunity, though it requires a higher level of responsibility and often safety training. When offering these services, it is prudent to discuss expectations regarding duties and payment upfront.

Other simple errands can generate income, such as bringing in mail and newspapers for neighbors on vacation. When providing services to non-family members, money earned is generally considered self-employment income. For the 2024 tax year, if a child’s net earnings from self-employment reach $400 or more, they are typically required to file a tax return and pay self-employment taxes. Keeping basic records of income and any related expenses (like supplies for yard work or pet treats) is helpful for potential tax purposes and understanding overall earnings.

Selling Your Creations and Unused Items

An entrepreneurial approach to earning money involves selling goods, whether they are items no longer needed or handmade creations. Selling old toys, books, or games that are still in good condition is an excellent way to declutter and earn money simultaneously. These items can be sold at a family yard sale, through local online marketplaces with parental supervision, or to consignment shops that buy gently used goods.

For children with a creative flair, making and selling handmade items can be a rewarding endeavor. Simple crafts like friendship bracelets, drawings, greeting cards, or small decorative items can appeal to friends, family, or even local craft fairs. Pricing these items should consider the cost of materials and the time invested in their creation.

Classic entrepreneurial ventures like setting up a lemonade stand or selling homemade baked goods also provide valuable experience. These activities teach basic principles of marketing, customer service, and pricing. Creating simple signs and ensuring a presentable display can help attract customers and maximize sales.

Managing Your Money

After earning money, understanding how to manage it responsibly is an important next step. Saving a portion of earned money is a fundamental financial habit that can help achieve larger goals. Whether it is saving for a desired toy, a new video game, or even a future educational expense, setting a specific savings goal provides motivation and teaches patience.

Thoughtful spending is another important lesson. Instead of impulsively buying items, children can learn to evaluate purchases, compare prices, and consider if an item truly aligns with their needs or wants. This practice helps develop decision-making skills related to personal finances.

A simple budgeting system can introduce the concept of allocating money for different purposes. Using a physical system, such as separate jars or envelopes labeled “Save,” “Spend,” and even “Donate,” allows children to visually divide their earnings. This method provides a tangible way to see how their money is distributed and reinforces the importance of balanced financial habits.