How to Start Making Money When You’re Young

Making money at a young age provides valuable experience and lays a foundation for future financial independence. For pre-teens and early teenagers, typically those under 16, understanding how to earn, save, and manage money offers significant benefits. This initial exposure to financial responsibility can shape lifelong habits and provide a sense of accomplishment. This guide explores various avenues for young individuals to begin earning, along with practical advice on securing opportunities and handling their earnings.

Exploring Earning Avenues

Young individuals can explore numerous age-appropriate ways to earn money, ranging from neighborhood services to more structured part-time roles. Service-based opportunities are often accessible for younger earners, as they typically do not fall under strict child labor laws like traditional employment. These can include babysitting, pet sitting, dog walking, lawn care, car washing, or house cleaning. These services offer flexible earnings and seasonal work.

Creative endeavors and online opportunities also exist for young earners, often with parental guidance. Selling handmade crafts, creating digital art commissions, or engaging in online content creation can generate income. Some platforms offer micro-tasks like taking online surveys or basic data entry, which can be completed remotely. For older teens, typically those aged 14 and above, traditional part-time jobs become more available. These can include roles in retail stores, grocery markets as cashiers or stockers, or positions within the food service industry.

Such roles not only provide a steady income but also teach valuable customer service and teamwork skills. Tutoring younger students in academic subjects or coaching sports can leverage existing knowledge and skills for earning. The key is to match the earning avenue with the individual’s age, skills, and local demand, ensuring that any work undertaken is safe and permissible.

Securing Your First Opportunity

Turning an earning idea into a tangible opportunity requires practical steps, whether pursuing entrepreneurial ventures or traditional employment. For service-based jobs, identifying potential clients often begins within one’s immediate network, such as family, friends, and neighbors. Word-of-mouth referrals are highly effective, and simple marketing tools like creating flyers or online profiles on community social media groups can broaden reach. These materials should clearly state the services offered and contact information.

When setting rates for services, research what others in the area charge for similar work to ensure competitive yet fair pricing. For traditional jobs, preparing for the application process is essential. While extensive resumes may not be necessary for a first job, a simple resume highlighting educational achievements, extracurricular activities, volunteer work, and any relevant skills like communication or time management can be beneficial.

Practicing for an interview can help build confidence; this might involve rehearsing common questions and thinking about how to demonstrate responsibility and eagerness to learn. Many entry-level positions prioritize a positive attitude and reliability over prior work experience. The process of actively seeking and securing an opportunity provides invaluable lessons in self-advocacy and professional interaction.

Handling Your Money

Once money is earned, understanding how to manage it responsibly becomes important. Basic budgeting involves distinguishing between “needs” and “wants” to make informed spending decisions. Needs are essential expenses like school supplies or transportation, while wants are discretionary purchases such as entertainment or non-essential items. A simple budgeting approach like the 50/30/20 rule can be effective: allocating 50% of income for needs, 30% for wants, and 20% for savings.

Saving money for specific goals, both short-term and long-term, provides motivation and teaches financial discipline. Short-term goals might include saving for a new video game or concert tickets, while long-term goals could involve saving for a future car or college expenses. Physically managing money can start simply with a piggy bank for small amounts, progressing to opening a savings account at a bank or credit union. A savings account not only keeps money secure but also often earns a small amount of interest, demonstrating the power of compounding over time.

Regularly tracking income and expenses using a simple ledger or budgeting app helps maintain awareness of where money is coming from and where it is going. This practice reinforces the concept that income must exceed expenses to build savings and achieve financial objectives. Developing these habits early can lead to greater financial security and independence in adulthood.

Key Practicalities for Young Earners

Understanding practical and legal considerations is important for young individuals entering the workforce. Federal child labor laws, primarily governed by the Fair Labor Standards Act (FLSA), set minimum ages for employment, restrict working hours, and prohibit work in hazardous occupations. Generally, individuals under 14 years old cannot be employed in non-agricultural jobs covered by the FLSA, with exceptions for work like newspaper delivery or acting.

For 14- and 15-year-olds, working hours are limited to a maximum of 3 hours on a school day and 18 hours in a school week, with restrictions on night work. Once a person turns 16, they can work unlimited hours in non-hazardous occupations. State laws may have stricter standards than federal law; in such cases, the law that offers greater protection to the minor applies.

Safety is a primary concern for young workers. Employers and parents should ensure that young individuals receive proper training for their tasks, are provided with necessary personal protective equipment (PPE), and understand how to identify and report hazards. Parental guidance and supervision are often necessary, especially for younger earners, to ensure compliance with labor laws and to promote safe working environments.

Regarding taxes, if a young earner’s income exceeds a certain threshold, they may be required to file a tax return. If earnings surpass this threshold, income tax obligations may arise. While this article provides general information, specific tax advice should always be sought from a qualified tax professional to ensure compliance with current tax laws.