Learn about common ways to earn money and gain financial responsibility
Benefits Teenagers Get from Earning Money
Learning how to earn money as a teenager has significant advantages. First, teenagers can benefit from having their own money and not relying heavily on their parents. Fayza Stafford, CEO and President of Life Happens, said in an email to The Balance: “Having your child get a job helps prepare them for the real world by teaching them about financial matters at a young age. You don’t want to wait until they are older to teach them about finances.”
Stafford added that teaching kids financial responsibilities while they are young is essential for fostering a positive financial outlook and helping them become self-reliant adults. Teenagers can learn the value of money and how to manage it as soon as they develop work skills. Their work experience may give them an edge in their career paths as adults.
5 Ways for Teenagers to Earn Money
Teenagers have many opportunities to earn their own income. Here, we’ve used five categories to detail the best ways for teenagers to make money: traditional jobs, online jobs, side gigs, business ideas, and passive income ideas.
Traditional Ways for Teenagers to Earn Money
Common ways teenagers have been earning money for decades include part-time jobs after school, during summer break, or on weekends. Typical part-time jobs for teenagers include working in fast-food restaurants, car washes, retail stores, grocery stores, and movie theaters. Some employers may require teenagers under 16 to obtain a valid work permit.
Note: Teenagers may also find jobs on weekends or during the summer at golf courses, amusement parks, and summer camps. The median weekly earnings for individuals aged 16 and older working part-time was $317 in 2010, according to the U.S. Bureau of Labor Statistics.
Online Jobs for Teenagers
With an increasing number of employers hiring for remote jobs, teenagers may find opportunities in this trend. Side gigs and online jobs can be excellent options for earning money as a teenager, as they don’t require transportation and can allow for a flexible schedule, according to Stafford.
Home-based opportunities for teenagers include getting paid for taking surveys, starting a blog or podcast, monetizing social media like a TikTok channel or YouTube channel, working as a freelancer on Fiverr, managing social media accounts, selling clothes or other items, and watching videos or playing games on a site like Swagbucks.
Some of these online side jobs have the potential to earn more than others, and the amount of money you will make will also depend on how much time you invest.
Note: Remember that you will have to pay income tax on your earnings, even if they come from a side gig. Teenagers earning an income should talk to an adult about how to handle their taxes.
Offline Side Jobs for Teenagers
Offline side jobs are another way for teenagers to earn money. Some of these opportunities include dog walking, babysitting, car washing, house cleaning, working as a youth sports referee or lifeguard, grocery delivery via Instacart, food delivery through DoorDash, teaching music lessons, and tutoring.
The amount of money teenagers can earn from offline side jobs will depend on the job. For example, tutoring jobs pay teenagers an average of $20 per hour as of May 2022, according to ZipRecruiter. Offline side jobs are usually flexible, so teenagers can make money while keeping up with their schoolwork, socializing with friends, and fulfilling home responsibilities.
Business Ideas
Business for Teens
Starting a business as a teenager can also be seen as an investment that can lead to long-term financial success. Teenagers can develop various products and services that can lead to potential profits. Some business ideas for teenagers include: selling crafts or homemade products on Etsy, developing an app, dog walking or pet sitting, gardening, house cleaning or house sitting, freelancing.
Note: Starting a business may require an initial investment of time or money, but this opportunity to earn money can be rewarding in the long run.
Passive Income Ideas for Teens
Passive income is money generated from activities in which you do not physically participate, according to the IRS. For example, rental property income is a type of passive income that adult investors can earn.
Passive income strategies can be appealing for a teen looking for low-pressure ways to make money, but they typically require a significant initial investment of time. Some ways for teens to earn passive income include: starting a blog or niche website, creating a YouTube channel, selling digital products, selling photos, creating an online course.
You may need help from an adult if you are under 18. For example, teens under 18 are not allowed to monetize their YouTube channels unless linked to an adult-owned approved Adsense account.
Also, remember that “passive income” streams still require work. If you want to start a blog, for example, to earn money from ads or affiliate marketing, you will first need to spend some time creating content for it. You will also need 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 a young age can lead to lifelong benefits that can keep them financially healthy. Parents can help teens learn financial responsibility by touching on topics such as: budgeting basics, setting savings goals, the benefits of investing, and the importance of managing debt.
Parents can also teach financial responsibility by modeling good behavior and sticking to a budget, regularly setting savings goals, and managing debt. They can talk to teens about their own financial decisions.
Note: Parents can also help their teens manage financial products like credit cards and bank accounts, or even IRA accounts. They often need to co-sign for these products on behalf of the teen. Some budgeting apps offer debit cards for teens and allow parents to monitor their spending activity.
Conclusion
Earning money as a teenager can be a valuable learning experience, whether through a part-time job, starting a side hustle, or passive income streams. “View this job as another step toward becoming financially independent,” Stafford said. “It’s never too late to consider financial planning.”
Frequently Asked Questions
When should a teen get a job? Teens should consider getting a job if they are ready to earn money and can handle the responsibilities of work. Starting a side hustle is also a great option for teens who do not want a set work schedule.
Is it hard to get a job as a teen? Many companies and businesses hire teens for part-time work and on weekends. The difficulty of getting a job as a teen may depend on your age, employment laws in your state, and whether the employer requires any special skills.
How
A teenager can learn budgeting when they have a job. Parents can help teenagers learn financial budgeting by discussing how budgeting works. They can assist their teen in determining how much of their pay needs to go toward bills, how much should be allocated for savings or other goals, and how much is considered appropriate for spending.
Source: https://www.thebalancemoney.com/how-to-make-money-as-a-teen-5323084
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