What to Do to Get Money as a Kid

Earning money as a kid teaches financial responsibility and the connection between effort and reward. Understanding how money works, including saving and spending, helps establish positive financial habits for the future. It also provides a chance to set personal goals and work towards achieving them.

Earning Within the Household

Earning money at home often involves a structured allowance system, where children receive payment for completing chores. This approach teaches them that money is earned through consistent effort and contribution to the family. Families typically set clear expectations for tasks and payment, creating a transparent system.

Common age-appropriate household tasks that can be compensated include tidying rooms, assisting with dishes, helping with laundry, or light gardening. For younger children, tasks might be simpler, such as making their bed or putting away toys. As children grow, the complexity of tasks can increase, ranging from loading a dishwasher to cleaning a bathroom or doing their own laundry.

The amount of allowance can vary significantly by age and family approach. Some families follow a guideline of $1 to $2 per week for each year of a child’s age, meaning a 10-year-old might receive $10 to $20 weekly. Other data indicates average weekly allowances ranging from $6 for a 5-year-old to over $20 for a 17-year-old. The purpose is to connect work with financial gain and encourage budgeting and saving.

Earning Through Community Services

Children can also earn money by offering services to neighbors or other community members, expanding opportunities beyond the household. Popular options include babysitting, pet sitting, dog walking, and various yard work tasks like mowing lawns, raking leaves, or shoveling snow. Washing cars or helping with errands are also common ways to provide services.

To find clients, children can talk to neighbors, create flyers, or use community social media groups with parental guidance. Babysitting rates for teenagers can range from $8 to $19 per hour, though rates vary by location and experience. For yard work, like mowing lawns, rates often depend on yard size and services provided, typically ranging from $20 to $50 per job.

Parental involvement and supervision are important when children offer services outside the home to ensure safety and proper conduct. This oversight helps establish boundaries, ensures appropriate pricing, and provides security for the child and client.

Earning Through Creative and Entrepreneurial Ventures

Beyond services, children can explore creative and entrepreneurial ventures, involving creating a product or developing a skill to sell. A classic example is a lemonade stand, where young entrepreneurs learn about product, pricing, and customer interaction. Other options include baking and selling goods, creating and selling handmade crafts like jewelry or greeting cards, or offering tutoring services to younger students.

For older children with parental guidance, exploring online activities like selling used items or creating basic content can generate income. These ventures involve identifying a product or service, determining a fair price, and finding customers. For instance, selling handmade crafts might involve participating in local craft fairs or setting up an online presence with adult supervision.

When children earn income through these entrepreneurial activities, especially if the earnings are significant, it’s important to consider tax implications. A dependent child may need to file a federal tax return if their earned income exceeds a certain threshold, or if they have net earnings from self-employment of $400 or more. IRS Publication 929 provides detailed guidance on tax rules for children and dependents. While most casual lemonade stand earnings do not trigger federal income tax filing requirements, local regulations regarding permits or sales taxes for such ventures can vary.