The Benefits Teens Get From Earning Money
Learning how to make money as a teen has significant advantages. First, teens can benefit from having their own spending money and being less reliant on their parents. “Getting a job helps your teen prepare for the real world by learning about finances at an early age,” Faisa Stafford, CEO and president of Life Happens, told The Balance in an email. “You don’t want to wait until they’re adults to teach them about finances.” Stafford said teaching children about financial responsibilities while they’re young is key to fostering a positive financial outlook and helping them become a self-reliant adult. Teens can learn about the value of money and how to manage it as they gain job skills. Their work experience could give them an edge on their career path as an adult.
5 Ways for Teens To Make Money
Teens have many opportunities for earning their own income. Here, we’ve used five categories to detail the best ways to make money as a teen: traditional jobs, online hustles, side hustles, business ideas, and passive income ideas.
Traditional Ways To Make Money as a Teenager
Common ways teens have traditionally earned money for decades include:
Part-time jobsAfter-school jobsSummer jobsWeekend jobs
Typical part-time job options for teens include working at fast-food restaurants, car washes, retail stores, grocery stores, and movie theaters. Some employers may require teens younger than 16 to have a valid work permit.
Online Side Hustles for Teens
As more employers hire for remote positions, teens may find opportunities in this trend. Online side hustles and side jobs can be great options for making money as a teen because they don’t require transportation and they can allow for a flexible schedule, Stafford said. At-home opportunities for teens include:
Getting paid to take surveysStarting a blog or podcastMonetizing social media, like a TikTok channel or YouTube channelFreelancing on FiverrManaging social media accountsFlipping clothing or other itemsWatching videos or playing games with a site like Swagbucks
Some of these online side hustles have more earning potential than others, and how much you earn will also depend on how much time you put in.
Offline Side Hustles for Teens
Offline side hustles are another way to make money as a teen. Some of these opportunities include:
Walking dogsBabysittingWashing carsCleaning housesWorking as a youth-sports referee or lifeguardDelivering groceries via InstacartDelivering food via DoorDashTeaching music lessonsTutoring
The amount of money teens can earn with offline side hustles will depend on the job. Tutoring jobs for teens, for instance, pay $20 an hour on average as of May 2022, according to ZipRecruiter. Offline side hustles are usually flexible, so teens can make money while still keeping up with schoolwork, socializing with friends, and fulfilling responsibilities at home.
Business Ideas for Teenagers
Starting a business as a teenager can also be considered an investment that could lead to long-term financial success. Teens can develop many products and services that could lead to potential profits. Some business ideas for teenagers include:
Selling homemade crafts or products on EtsyDeveloping an appDog walking or pet sitting Lawn careHouse cleaning or house sittingFreelancing
Passive Income Ideas for Teenagers
Passive income is money generated from activities in which you don’t materially participate, according to the IRS. Rental real estate income, for example, is a form of passive income that adult investors can earn. Passive income strategies might appeal to a teen looking for low-stress ways to make money, but they typically require an initial significant investment of your time. Some ways to make passive income as a teen might include:
Starting a blog or niche websiteCreating a YouTube channelSelling digital productsSelling photosCreating an online course
You may need help from an adult if you’re under age 18. YouTube, for example, doesn’t allow teens under 18 to monetize their channels unless they’re linked to an approved Adsense account owned by a parent. Also, remember that “passive income” streams still require work. If you want to start a blog, for example, to make money from ads or affiliate marketing, you’ll first have to spend some time creating content for it. You’ll also have to spend time promoting that content to build steady traffic to generate income.
How Parents Can Help Teens Learn Financial Responsibility
Talking to kids about money from an early age can lead to lifelong benefits that can keep them in financial health. Some ways parents can help teens learn financial responsibility include addressing topics such as:
Budgeting basicsSetting savings goalsThe benefits of investingThe importance of managing debt
Parents can also teach financial responsibility by setting a good example and sticking to a budget, regularly setting savings goals, and managing their debt. They can talk to their teens about their own financial decisions.
The Bottom Line
Making money as a teen can be a valuable learning experience, whether it’s through a part-time job, starting a side hustle, or passive income channels. “Look at this job as another step toward you becoming financially independent,” Stafford said. “It’s never too early to look at what financial planning is.” Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
