How to Make Money at Age 12: Safe Ways for Kids to Earn

Earning money at a young age fosters responsibility and provides an early understanding of financial concepts. This experience introduces basic financial literacy, laying a foundation for future money management skills. Managing personal funds contributes to independence and self-reliance.

Earning Through Local Services

Providing services within a neighborhood offers a practical way for young people to earn money. Opportunities often include pet care, such as dog walking or pet sitting for neighbors while they are away. These tasks require reliability and a genuine care for animals, ensuring the pets are well-tended.

Yard work presents another common avenue for earning, encompassing tasks like raking leaves during autumn, weeding garden beds, or basic lawn maintenance. Seasonal chores such as shoveling snow in winter or washing cars in warmer months are also in demand. These activities allow young individuals to develop a work ethic and learn about fulfilling client expectations.

House-sitting services, which might involve checking mail, watering plants, or ensuring the security of a home while residents are absent, are also valuable. Tutoring younger children in subjects where one excels, or assisting elderly neighbors with light chores, provides meaningful contributions to the community. These roles build communication skills and demonstrate the importance of helping others.

To secure these opportunities, a young person can politely inquire with family friends, neighbors, or through community bulletin boards with parental consent. Creating simple flyers detailing the services offered and contact information, always including parental oversight, can also be effective. Demonstrating punctuality, a positive attitude, and consistent effort helps build a good reputation, leading to repeat business and referrals.

Earning Through Creative and Selling Activities

Young individuals can also generate income by leveraging their creativity or by selling items they no longer need. Crafting and selling handmade goods allows for artistic expression while developing entrepreneurial skills. Examples include designing and selling greeting cards, creating friendship bracelets, or producing small art pieces.

Baking goods, such as cookies or lemonade, and selling them from a neighborhood stand can be a popular and engaging activity, especially in warm weather. These items can also be offered at local craft fairs or school events, always with appropriate parental supervision. Online platforms can also be used for sales, but this requires significant parental involvement to manage accounts and transactions.

Selling unused items around the home provides another straightforward method to earn money and declutter simultaneously. Old toys, books, video games, or outgrown clothing that are still in good condition can be valuable to others. Organizing a garage sale or participating in a community yard sale offers a direct way to sell these items.

For online sales of unused items, platforms designed for local swap groups or broader marketplaces can be utilized. Strict parental supervision is essential for any online transactions, including managing accounts, communicating with buyers, and arranging safe exchanges. This approach teaches the concept of resale value and the process of marketing goods.

Responsible Money Management and Safety

Learning to manage earned money effectively is an important life skill for young individuals. A fundamental step involves understanding basic budgeting, which includes deciding how much to save, how much to spend, and whether to allocate a portion for sharing or donating. Setting clear financial goals, such as saving for a desired item or contributing to future educational expenses, provides motivation and direction for earnings.

Tracking income and expenditures, even in a simple notebook, helps a young person see where their money comes from and where it goes. This practice builds awareness of financial flows and encourages thoughtful spending habits. For larger sums, parents can assist in opening a custodial account, such as a Uniform Gift to Minors Act (UGMA) or Uniform Transfer to Minors Act (UTMA) account. These accounts are managed by an adult, but the funds legally belong to the minor and transfer to the child upon reaching the age of majority.

Regarding tax obligations, a dependent child needs to file a federal income tax return if their earned income exceeds $14,600 for the 2024 tax year. If their self-employment income, such as from yard work or babysitting, reaches $400 or more, a return is required. Even if earnings fall below these thresholds, filing a return might be beneficial if income tax was withheld, as it could result in a refund.

Safety measures are important for any earning activity undertaken by a young person. All earning endeavors should be known and approved by parents or guardians. A 12-year-old should never enter a stranger’s home alone for work. Work should be conducted in public or visible spaces, or with a parent present.

For any online interactions related to selling or services, parental supervision is essential, utilizing parent-owned accounts and never sharing personal identifying information. When meeting clients in person, it is safest to do so in a public location or with a parent accompanying the young person. Ensuring the child knows emergency contacts and is aware of their surroundings contributes to overall safety.