How to Make Good Money as a Teenager

Teenagers exploring avenues to earn money can gain valuable financial independence and develop practical skills that extend beyond their immediate earning potential. Engaging in income-generating activities during these formative years provides opportunities to understand personal finance, time management, and the value of work. These experiences can lay a foundation for future financial literacy and career development. Pursuing various legitimate income streams allows teenagers to contribute to their savings goals, fund personal interests, or even assist with household expenses.

Local Service-Based Opportunities

Earning money through local service-based opportunities offers flexibility and direct payment, often fitting well around academic schedules. Babysitting is a common starting point, with rates varying by location but often ranging from $10 to $20 per hour depending on the number of children and responsibilities. Teenagers can find clients through word-of-mouth referrals, community social media groups, or local bulletin boards. Developing a reputation for reliability and responsibility can lead to consistent work.

Pet sitting and dog walking also provide a way to earn income by caring for animals in the neighborhood. Charges for these services can range from $15 to $30 for a walk or daily visit, with overnight pet sitting potentially earning $40 to $70 per night. Promoting services through neighborhood apps, flyers, or simply by talking to pet owners can help secure initial clients. Lawn care, including mowing, raking, or weeding, offers another seasonal opportunity, with common rates for mowing a typical yard falling between $30 and $60, depending on size and complexity.

Tutoring younger students or peers in subjects where a teenager excels can command rates from $20 to $40 per hour, reflecting the specialized knowledge provided. Local schools or community centers may have programs that connect tutors with students, or word-of-mouth referrals can be effective. Other services like house cleaning, car washing, or running errands can be priced per task or hourly, typically ranging from $15 to $25 per hour. For all these services, it is prudent for teenagers to track their income and expenses, as self-employment earnings exceeding $400 in a tax year generally require filing a tax return and paying self-employment taxes, which cover Social Security and Medicare contributions.

Formal Part-Time Employment

Formal part-time employment provides teenagers with structured work environments, regular paychecks, and opportunities to develop professional skills. Retail positions, such as those in clothing stores or supermarkets, are frequently available to teenagers, offering experience in customer service and inventory management. Food service roles in restaurants or fast-food establishments also provide practical skills in teamwork and efficiency. These jobs often pay at least the federal minimum wage, which is $7.25 per hour, though many states and cities have higher minimum wage rates.

Teenagers can seek these opportunities through online job boards, company websites, or by visiting establishments directly to inquire about openings. The application process typically involves submitting a resume, even if brief, and participating in an interview. Many employers require a work permit for minors, and federal labor laws restrict the types of jobs and hours that teenagers under 16 can work. For example, during school weeks, 14- and 15-year-olds are generally limited to working no more than 3 hours per day and 18 hours per week.

Lifeguarding at community pools or beaches is another common part-time job that often requires specific certifications but can offer higher hourly wages, sometimes ranging from $12 to $18 per hour. Camp counselor roles during summer breaks also provide structured employment and the chance to gain leadership experience. Earnings from formal employment are typically reported on a Form W-2, and employers withhold federal income tax, state income tax (if applicable), Social Security tax, and Medicare tax from paychecks. Understanding these withholdings is an important aspect of financial literacy gained through formal employment.

Digital and Online Income Streams

Leveraging digital skills provides teenagers with flexible and potentially lucrative online income streams, often with higher earning potential than traditional part-time roles. Content creation on platforms like YouTube or TikTok allows teenagers to monetize their creativity through advertising revenue, brand sponsorships, and direct fan support. Building an audience and consistently producing engaging content can lead to significant income, though it requires dedication and understanding of platform algorithms. Online tutoring, particularly for academic subjects or specific skills like coding or music, can be done remotely through video conferencing. Tutors can set their own rates, which often range from $25 to $50 per hour, depending on their expertise and the subject demand.

Virtual assistant work involves providing administrative, technical, or creative assistance to clients remotely. Tasks can include managing emails, scheduling appointments, or data entry, and rates typically range from $15 to $35 per hour. Teenagers with graphic design or web development skills can offer their services to small businesses or individuals, creating logos, websites, or marketing materials. Project-based fees for these services can range from a few hundred dollars for a simple website to thousands for more complex design work. Selling digital products, such as custom art, templates, or educational guides, on platforms like Etsy or Gumroad, allows for passive income once the initial product is created.

Participating in online surveys or micro-task platforms can provide supplemental income, though the pay per task is generally lower, often just a few dollars per hour. Many platforms have age restrictions, with 13 or 16 being common minimum ages for participation. For all online income streams, teenagers should be aware that earnings may be reported on Form 1099-NEC if they earn over $600 from a single client or platform in a tax year. This means the teenager is responsible for paying their own self-employment taxes, which totaled 15.3% for Social Security and Medicare taxes on net earnings in 2024. Maintaining detailed records of all income and related business expenses is crucial for accurate tax reporting.

Starting Your Own Small Venture

Starting a small venture allows teenagers to explore entrepreneurship, combining creativity with business acumen to generate income. This path moves beyond simple gigs, requiring more planning and initiative to develop and market a product or specialized service. Selling handmade crafts or art, for instance, can be done through online marketplaces like Etsy, at local craft fairs, or through social media. The profit margin depends on material costs and pricing strategy, but successful crafters can earn hundreds or even thousands of dollars monthly. Similarly, creating and selling baked goods, if permitted by local food safety regulations, can cater to local events, special orders, or farmers’ markets.

Offering specialized services also presents entrepreneurial opportunities. Teenagers proficient in technology can provide tech support for seniors, helping with device setup, software troubleshooting, or basic computer literacy. This service can be priced hourly, often between $25 and $50, or as a flat fee for specific tasks. Teenagers with strong social media skills can offer social media management services to local small businesses, creating content, scheduling posts, and engaging with followers. Monthly retainers for such services can range from a few hundred to over a thousand dollars, depending on the scope of work.

Developing and selling apps or games requires coding skills but offers significant earning potential through app store sales, in-app purchases, or advertising. This venture demands a higher initial investment of time and learning but can scale globally. Identifying a niche where there is demand and less competition is a fundamental step for any small venture. Basic marketing strategies, such as creating a simple website, using social media, and word-of-mouth referrals, are essential for reaching potential customers. As with other self-employment activities, all income and related business expenses must be meticulously tracked. Net earnings from a small venture exceeding $400 in a tax year are subject to self-employment taxes, requiring the filing of a Schedule C (Profit or Loss from Business) with their tax return. This entrepreneurial path not only offers the potential for higher earnings but also develops valuable skills in business planning, marketing, and financial management.