How to Help Your 10-Year-Old Earn Money
Guide your 10-year-old in developing responsibility and financial wisdom through their initial earning experiences, ensuring safety and practical money skills.
Earning money at a young age can provide children with valuable life lessons that extend beyond just receiving cash. It helps foster a sense of responsibility and independence, teaching them about the connection between effort and reward. Developing basic financial awareness early on can set a foundation for future money management skills. The aim is not for children to earn large sums, but rather to gain an understanding of value and the satisfaction of earning through their own efforts.
Age-Appropriate Earning Opportunities
Opportunities for a 10-year-old to earn money often start within the home environment. Beyond regular household contributions, specific tasks can be compensated, such as washing the family car, deep cleaning projects like organizing a garage or basement, more involved yard work, vacuuming, doing laundry, or thoroughly cleaning shared living spaces. For these tasks, a 10-year-old might earn an average of $10 to $20 per week for a set of responsibilities, or approximately $1.50 to $3 for more complex individual chores.
Beyond the home, opportunities exist within the neighborhood and local community. Children can offer services such as:
Pet sitting or dog walking for familiar neighbors.
Yard work, including raking leaves, watering plants, or mowing small lawns.
Running small errands.
Washing cars for neighbors.
Creative and entrepreneurial ventures also present earning possibilities. A classic example is setting up a lemonade stand, which can teach basic business principles and potentially generate revenue ranging from hundreds to a few thousand dollars over a summer. Selling handmade crafts, such as friendship bracelets or greeting cards, or baking simple goods like cookies, are also viable options. Children can also earn money by selling unused items they no longer need, such as old toys, books, or clothes.
Ensuring Safety and Guidance
Active parental or guardian supervision is necessary for any earning activities a 10-year-old undertakes. This oversight is particularly important for tasks involving interactions with neighbors or community members. Parents should personally assess and approve all potential earning opportunities to confirm the environment and tasks are safe and suitable for their child.
Stranger safety rules must be reinforced, emphasizing that a child should never interact with unfamiliar individuals alone or go to unknown locations. Clear expectations should be established regarding the hours a child can work, the types of tasks they can perform, and acceptable interactions with others. It is important to help children understand that earnings may be modest and inconsistent, shifting the focus from maximizing profit to the valuable learning experience.
Managing Earned Income
Once a child begins earning money, it presents an opportunity to introduce fundamental financial literacy concepts. Encouraging children to set savings goals, such as for a desired toy, game, or a larger purchase, helps them understand delayed gratification. A simple piggy bank or a designated savings jar can serve as tangible tools for tracking their progress.
Discussions about making thoughtful spending choices can help children differentiate between needs and wants. This teaches them to prioritize their purchases and consider the long-term implications of their financial decisions. Introducing the concept of giving, such as donating a small portion of their earnings to a charitable cause or sharing with family, can instill a sense of community and generosity.
Simple methods for tracking earnings and savings, like maintaining a notebook or a chart, can help a child visualize their financial activity and progress. Regarding tax obligations, a dependent child with earned income generally must file a tax return if their income exceeds the standard deduction. If a child earns from self-employment activities, they may be subject to self-employment tax. However, for most 10-year-olds, earnings are usually below these thresholds, meaning no federal income tax filing is required.