Simple Ways to Make Easy Money for Kids

Earning money at a young age provides valuable lessons in financial literacy and responsibility. Simple, age-appropriate methods allow children to understand earning, saving, and managing their own funds. This early exposure to financial independence can help foster a deeper appreciation for hard work and the value of money. Learning about income and expenses from a young age establishes a foundation for future financial well-being.

Earning Money Through Local Services

Children can readily earn money by offering various services within their local community, often for neighbors, friends, or family. These opportunities typically involve practical, in-person tasks that require minimal specialized skills or tools. Examples include common yard work like raking leaves, watering plants, or weeding gardens. Providing pet care, such as daily dog walking or feeding pets, also offers a consistent earning stream.

Other straightforward services include washing cars, which can be done with basic supplies like soap, water, and sponges. Assisting with simple household chores, such as taking out the trash or bringing in mail, further expands earning possibilities. These services can be advertised through word-of-mouth or by distributing simple, homemade flyers to nearby households. Payments for these services are typically received directly in cash, making it important for children to track their earnings.

For dependent children, the Internal Revenue Service (IRS) sets specific thresholds for when earned income requires a tax filing. For the 2024 tax year, a dependent child generally needs to file a federal income tax return if their earned income exceeds $14,600. Children earning $400 or more from self-employment may be subject to Social Security and Medicare taxes.

Creative and Craft-Based Earning

Another pathway for children to earn money involves creating and selling tangible items. This approach leverages existing hobbies or encourages the development of new creative skills using inexpensive materials. Handmade cards, for instance, are popular items that can be crafted with paper, envelopes, and art supplies. Simple jewelry, such as friendship bracelets made from beads or string, is also easy to produce and can appeal to a wide audience.

Baked goods like cookies or cupcakes offer a consumable product that can be prepared with common kitchen ingredients. Selling refreshing beverages, such as lemonade from a stand, remains a classic entrepreneurial endeavor. Simple drawings or artwork can also be sold. These items can be sold directly to family and friends, at a small stand set up in front of a home, or at local community events.

When selling goods, tracking the cost of materials used for each item helps in determining a fair selling price and understanding profitability. For example, if ingredients for a batch of cookies cost $5 and yield 10 cookies, the material cost per cookie is 50 cents. Income from selling crafts is considered self-employment income.

Online Earning Opportunities

Online avenues also present age-appropriate opportunities for children to earn money, though these typically require parental involvement and supervision. Participating in simple online surveys can yield small cash amounts or gift cards, often available through platforms that permit users aged 13 and older with parental consent.

Some game-based platforms offer rewards that can be converted into cash or gift cards. Creating and selling simple digital art or designs on marketplaces, such as Etsy, is another option. For platforms like Etsy, a parent or legal guardian must be listed as the account owner, and their payment information is required.

It is important to understand the tax implications of online earnings. Income from online activities is generally considered earned income if it results from the child’s services. However, if funds are placed in an account that generates interest or dividends, this becomes unearned income. For the 2024 tax year, a dependent child must file a tax return if their unearned income exceeds $1,300. Unearned income above $2,600 for the 2024 tax year may be subject to the “kiddie tax,” meaning it could be taxed at the parent’s marginal tax rate rather than the child’s lower rate. Parents might have the option to include a child’s interest and dividend income on their own tax return using IRS Form 8814 if certain conditions are met, such as the child’s gross income being less than $13,000 for 2024. Otherwise, if the kiddie tax applies, Form 8615 is used to calculate the tax on the child’s unearned income.