How to Start Making Money as a Teenager
Discover practical steps and diverse opportunities for teenagers to earn and manage their own money effectively.
Earning money as a teenager offers valuable experience and financial independence. This guide explores various ways young people can earn income, from traditional part-time jobs to entrepreneurial ventures and digital opportunities, focusing on actionable steps.
Finding Traditional Part-Time Jobs
Securing a traditional part-time job requires preparation. Start by developing a basic resume, outlining contact information, school schedule, and any relevant skills or volunteer experiences. Include experiences like babysitting, pet sitting, or school projects to showcase responsibility. Identify individuals who can serve as references, such as teachers or coaches, and ensure they are contacted for permission beforehand.
Explore local businesses like retail stores, restaurants, and grocery stores, applying in person or online. Online job boards and community sites also list entry-level positions. School career centers or guidance counselors can provide resources. Many states require a work permit for minors, typically obtained through the school or state labor department, and employers often guide new hires through this process.
Prepare for interviews by practicing responses to common questions about availability, interest in the company, and how school experiences relate to the role. Be ready to discuss strengths, weaknesses, or problem-solving, using examples from school or activities. During the interview, maintain good posture, make eye contact, and arrive a few minutes early. Send a thank-you note or email afterward to reinforce a positive impression.
Starting Your Own Service-Based Ventures
Starting a service-based venture allows teenagers to leverage existing skills or address local demands. Identify potential services based on personal aptitudes or community needs, such as babysitting, pet care, lawn mowing, tutoring, or car washing.
Determine a fair price by researching local rates for similar services. For example, babysitting rates vary, typically ranging from $14 to $20 per hour for one child, with an additional fee for more children. Lawn mowing rates can range from $30 to $65 per hour or a flat fee depending on lawn size and services. Set a competitive price that reflects effort, time, and materials.
Find initial clients through word-of-mouth referrals from family, friends, and neighbors. Create simple flyers for community boards or local businesses. Engage with online neighborhood groups to connect with potential clients. Clear communication regarding services, pricing, and availability is essential. Delivering consistent, reliable service and seeking feedback builds a positive reputation and encourages repeat business.
Exploring Digital Earning Opportunities
The digital landscape offers flexible ways for teenagers to earn money online. Online surveys are a common starting point, allowing individuals typically aged 13 and up to participate. While earnings per survey can be modest, they offer a way to earn money in spare moments. Micro-task platforms also provide small, short-term digital tasks.
Content creation on platforms like YouTube or TikTok can generate income through ad revenue, sponsorships, or creator funds, often with age requirements. Online tutoring platforms allow teenagers to tutor peers in subjects where they have expertise. Selling digital products, such as graphic designs or printables, through online marketplaces is another option.
Navigating online earning requires attention to safety and legitimacy. Research platforms to ensure they are reputable, looking for secure websites and avoiding unrealistic earnings. Protect personal information; Social Security Numbers (SSNs) should only be shared when necessary for legitimate tax purposes, like completing a Form W-9 for income over $600. Be cautious of scams, such as requests for upfront payments or vague job descriptions. Use strong passwords and two-factor authentication. Parental guidance is advised for all online financial activities.
Managing Your Earnings
Managing earned money is a crucial step in building financial literacy. Open a bank account, often a youth checking or savings account, which typically requires a parent or guardian as a joint owner. This process usually involves providing identification for both the teenager and parent, such as a birth certificate, SSN, and a government-issued ID. A bank account offers a secure place for earnings, enables easy deposits, and often comes with a debit card.
Tracking income and expenses is fundamental to money management. Use a notebook, spreadsheet, or budgeting application to monitor cash flow. Categorize funds as “income” and “expenses,” recording the date, amount, and purpose of each transaction. This practice helps understand where money comes from and goes.
Make saving money a regular habit. Establish specific savings goals, such as for future education, a significant purchase, or investment. Many bank accounts allow automated transfers from checking to savings, simplifying consistent saving. Embrace the principle of “paying yourself first” by allocating a portion of earnings to savings immediately.
Understand basic tax implications. Any money earned is generally considered taxable income. If income exceeds certain thresholds, a tax return may be required. For traditional jobs, a Form W-4 is completed for tax withholding. For independent contractor income, if earnings from a single payer exceed $600 in a calendar year, a Form W-9 is generally requested for tax reporting. Parents usually oversee the tax filing process for minors.