How to Start Making Money at a Young Age

Earning money at a young age helps develop independence, responsibility, and practical skills. It provides an early understanding of personal finance and builds confidence for future endeavors.

Legal and Age-Related Considerations

The Fair Labor Standards Act (FLSA) sets federal standards, generally establishing a minimum employment age of 14 for non-agricultural jobs. For those aged 14 and 15, the FLSA restricts work hours to outside of school hours, with limits of no more than 3 hours on a school day and 18 hours during a school week. During non-school periods, these minors can work up to 8 hours a day and 40 hours per week, typically between 7 a.m. and 7 p.m., with an extension to 9 p.m. from June 1 through Labor Day.

Minors aged 16 and 17 generally face no federal restrictions on work hours, but they are prohibited from occupations deemed hazardous by the Secretary of Labor. These hazardous occupations include mining, manufacturing, and operating certain power-driven machinery. Federal law also exempts children working for businesses solely owned by their parents from age and hour restrictions, except they cannot be employed in manufacturing, mining, or hazardous occupations.

State laws often provide additional or more stringent protections than federal regulations; when both apply, the law offering the greater protection to the minor must be followed. Many states require parental consent for minors to work, sometimes through formal work permits or consent letters.

Employers are responsible for providing a safe environment and adequate training on job hazards and safety precautions. Young workers should be trained on the proper use of equipment, the importance of personal protective equipment, and how to report unsafe conditions. If safety equipment beyond a hard hat, eye protection, or gloves is required, the job might not be appropriate for minors.

Practical Earning Opportunities

Neighborhood Services

Neighborhood services offer accessible entry points for young people to earn money within their local communities. Babysitting is a common opportunity, requiring responsibility and basic childcare skills, often advertised through local flyers or word-of-mouth. Pet sitting and dog walking allow young individuals to care for animals, typically involving regular exercise and feeding routines for neighborhood pets. Yard work, such as mowing lawns, raking leaves, or shoveling snow, provides seasonal income and requires physical effort, often with tools like manual rakes or non-power-driven lawnmowers for younger individuals.

Car washing services can be offered to neighbors, requiring minimal supplies and providing a straightforward way to earn cash. These neighborhood-based activities often operate outside formal employment structures, but should align with local regulations and parental guidance. Approaching neighbors directly or using community message boards can help secure these opportunities.

Online Opportunities

Online opportunities also provide avenues for earning, particularly for those with digital skills and appropriate parental supervision. Online tutoring for younger students can leverage a young person’s academic strengths in subjects like math or reading. Content creation, such as developing simple video tutorials or contributing to age-appropriate blogs, can generate income through platforms that support creator monetization. Simple freelance tasks, including data entry or virtual assistance for family friends’ small businesses, can be performed remotely.

These digital tasks require a computer and internet access, and platforms must be suitable for minors, often with parental oversight. Basic computer literacy and communication skills are beneficial for pursuing online work. Online opportunities can offer flexible hours and a wider client base than traditional local services.

Creative Ventures

Creative ventures allow young people to monetize their artistic talents and hobbies. Selling handmade crafts, such as jewelry, greeting cards, or decorative items, can be done through local craft fairs, community events, or simple online storefronts. Baking and selling goods, like cookies or cupcakes, can appeal to local demand for homemade treats. Creating and selling original artwork, including drawings, paintings, or digital designs, offers a way to earn from artistic expression.

These ventures may require an initial investment in materials but can yield profits with effective marketing and quality products. Skills in design, production, and customer service are beneficial. Local markets, school events, or social media platforms can serve as selling channels.

Small Entrepreneurial Activities

Small entrepreneurial activities provide direct experience in running a micro-business. Setting up a lemonade stand teaches basic sales, customer interaction, and pricing strategies, particularly effective in high-traffic areas during warm weather. Organizing a garage sale allows young individuals to sell unused items, learning about inventory management and negotiation. Simple errand running for neighbors, such as grocery pickups or post office visits, offers a service that can be charged per task or hour.

These activities emphasize direct customer interaction and problem-solving skills. They offer practical lessons in managing a small operation. Word-of-mouth advertising can be effective.

Managing Your Income

Saving a portion of income is a foundational financial practice, allowing funds to accumulate for future goals. These goals might include purchasing a desired item, contributing to future education expenses, or building an emergency fund. A piggy bank can track initial savings.

For more substantial savings, custodial accounts, such as Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) accounts, offer a structured approach. These accounts are established and managed by an adult custodian for the minor’s benefit until they reach the age of majority, typically ranging from 18 to 21 years old depending on the state. All assets within the account legally belong to the minor. While there are generally no contribution limits, large contributions may be subject to gift tax rules. Funds from a custodial account must be used for the minor’s benefit.

Creating a simple budget helps young earners allocate funds, distinguish between needs and wants, and make informed spending decisions. This reinforces the value of money and encourages responsible consumption. Tracking expenses provides insights for aligning with financial goals.

If a minor’s earned income exceeds the standard deduction for dependents, they may need to file a federal income tax return. For the 2025 tax year, the standard deduction for a dependent is the greater of $1,350 or the sum of $450 plus their earned income, up to the full standard deduction amount for a single filer, which is $15,750. If a minor has unearned income, such as interest or dividends, exceeding $1,300, they are also required to file a tax return. If self-employment income, like from babysitting or lawn mowing, reaches $400 or more, a tax return is typically required for self-employment taxes. Parents may have the option to report a child’s unearned income on their own tax return under specific conditions, which can simplify filing.

With parental guidance, simple investment options can grow savings further. High-yield savings accounts offer a secure way to earn more interest than traditional savings accounts. Custodial investment accounts, often UGMA or UTMA accounts, can hold various financial assets like stocks, bonds, and mutual funds, allowing for potential growth over time. These accounts provide an opportunity to learn about investing principles, such as diversification and long-term growth, in a controlled environment.