Top 5 Ways for Kids to Make Money in 2025

Teaching children the value of earning a dollar is a foundational step toward financial literacy. This guide moves beyond the piggy bank, focusing on actionable, IRS-compliant ways for kids to make money that can be used to fund a powerful wealth-building tool: a custodial Roth IRA. Establishing legitimate earned income is the critical first step, and this article provides a comprehensive roadmap for parents and guardians to help their children achieve just that.

We will explore a diverse collection of age-appropriate business ideas, from classic ventures like lemonade stands and pet care to modern opportunities in digital content creation and tech support. Each method is detailed with practical, step-by-step implementation advice, ensuring you have the information needed to guide your child effectively. The focus is on creating genuine, documented income streams, a non-negotiable requirement for IRA contributions.

This resource is designed for families eager to give their children a significant head start on long-term financial security. By transforming their childhood jobs into a springboard for tax-advantaged retirement savings, you can instill powerful lessons in entrepreneurship, responsibility, and the magic of compound growth. The strategies outlined here will help you navigate the process of generating and documenting your child’s earnings, paving the way for a future of financial well-being.

Disclaimer: We are not financial advisors and do not provide financial advice. The information provided here is for educational purposes only. Please consult with a qualified financial professional before making any investment decisions.

1. Lemonade Stand & Food Sales

The classic lemonade stand is more than just a childhood rite of passage; it's a foundational lesson in business and one of the most accessible ways for kids to make money. This venture introduces children to core concepts like product creation, pricing strategy, customer service, and profit management. By selling beverages, baked goods, or snacks, a young entrepreneur learns firsthand about supply and demand in a low-risk environment.

This business model is highly scalable. A child can start with a simple table on the sidewalk and grow to sell at community events, local farmers markets, or even school fundraisers, increasing their potential for earned income.

How to Maximize Success

To elevate a simple stand into a profitable business, focus on strategy and presentation. Here are actionable tips to get started:

• Location, Location, Location: Set up in high-traffic areas like near a community park, pool, or a local garage sale. Always get permission if operating on private or public property.
• Unique Selling Proposition (USP): Don't just sell lemonade. Offer unique flavors like strawberry-basil or lavender. Add high-margin items like cookies, brownies, or pre-packaged snacks to increase the average sale value.
• Compliance and Safety: Check local regulations regarding food sales, as some areas may require a permit. Adhere to food safety basics like using clean utensils, keeping items covered, and having hand sanitizer available.
• Financial Tracking: This is crucial for Roth IRA purposes. Use a simple spreadsheet or notebook to track all expenses (cups, ingredients) and revenue. The final profit is the earned income that can be contributed.

Key Insight: The profit from a food stand is considered self-employment income. Meticulous record-keeping is not just good business practice; it's essential for proving the earned income needed to make legal Roth IRA contributions for your child.

This venture is perfect for teaching fundamental commerce skills that last a lifetime. For a dose of inspiration, see how young entrepreneur Mikaila Ulmer turned her lemonade stand into a national brand sold in major grocery stores.

2. Pet Care Services

Pet care services offer a fantastic, hands-on way for kids to make money by leveraging their natural love for animals. This service-based business teaches immense responsibility, time management, and client communication. It involves caring for pets in the neighborhood, with tasks ranging from dog walking and pet sitting to feeding and basic grooming for family friends and local residents.

This business can start small, with a child caring for a single neighbor's dog, and expand into a full-fledged service with multiple clients. As a child builds a reputation for being reliable and caring, their potential for earned income grows through referrals and repeat business, making it a sustainable venture.

How to Maximize Success

A trustworthy reputation is the cornerstone of a successful pet care business. Here’s how to build a professional and profitable service:

• Start with the Familiar: Begin by caring for the pets of close family and friends. This builds experience and confidence in a low-pressure environment and helps generate initial testimonials.
• Create Service Packages: Instead of just offering a walk, create tiered packages. For example, a "Basic Package" might be a 30-minute walk, while a "Premium Package" could include a walk, feeding, and playtime. This increases the average transaction value.
• Prioritize Safety and Professionalism: Always keep a detailed file for each pet with emergency contact information for the owner and veterinarian. Learning basic animal first aid can be a major selling point for concerned pet owners.
• Meticulous Financial Records: To fund a Roth IRA, every dollar must be tracked. Use a dedicated notebook or a simple app to log all payments received for services and any expenses like treats or leashes. The net profit is the earned income that qualifies for contributions.

Key Insight: Income from pet care is self-employment income. Keeping detailed, accurate records of every service, date, and payment is non-negotiable. This documentation proves the legitimate earned income required for your child's Roth IRA contributions.

Building a client base through word-of-mouth is powerful. Encourage satisfied clients to refer their friends, perhaps by offering a small discount on their next service for every successful referral. This organic growth model is an excellent lesson in marketing and customer relations.

3. Lawn Care & Yard Work

Providing outdoor maintenance services is a fantastic way for kids to make money while learning about responsibility and hard work. A lawn care business involves mowing, raking leaves, pulling weeds, watering plants, and general yard cleanup. This physically active venture teaches a strong work ethic, customer relations, and scheduling, with significant potential for earned income, especially through repeat business.

This business model is highly scalable. A child can start by helping a single neighbor and expand to manage a roster of regular clients throughout the neighborhood. Seasonal demands for services like leaf raking in the fall or planting in the spring create consistent opportunities to earn.

How to Maximize Success

Transforming basic yard work into a structured business requires strategy and professionalism. Here are actionable tips to help a young entrepreneur get started:

• Build a Regular Clientele: Focus on securing weekly or bi-weekly mowing jobs. Consistent clients provide predictable income and simplify scheduling. Offer a small discount for a seasonal commitment.
• Offer Service Packages: Bundle services together. For example, offer a "Spring Cleanup" package that includes weeding, mulching, and planting. This increases the value of each job and boosts revenue.
• Safety and Equipment: Teach your child the proper and safe use of all equipment, from lawnmowers to rakes. Start with basic, high-quality hand tools and invest in more advanced equipment as the business and profits grow.
• Track Everything: Diligent financial tracking is non-negotiable for Roth IRA purposes. Use a spreadsheet or notebook to log all income from each job and every expense, such as gas for the mower, gloves, or yard waste bags. The net profit is the earned income eligible for contribution.

Key Insight: The income generated from a lawn care business is self-employment income. Maintaining precise records of earnings and expenses is crucial to substantiate the earned income figure required to legally fund a child's Roth IRA.

This type of work is ideal for teaching the value of manual labor, reliability, and service quality. For more inspiration on kid-friendly business models, explore these kids' business ideas on rothira.kids.

4. Tutoring & Academic Help

For academically inclined children, tutoring offers a powerful way to monetize their knowledge and is one of the more sophisticated ways for kids to make money. This service-based business involves helping younger students with homework, test preparation, or challenging subjects. It not only provides a valuable service to other families but also reinforces the tutor's own understanding of the material, building confidence and leadership skills.

This model leverages a child's existing strengths, turning classroom success into a source of earned income. A young tutor can start by helping a neighbor's child and expand to offering services through school programs or even vetted online platforms for teens, creating a flexible and respectable enterprise.

How to Maximize Success

Transforming academic talent into a paid service requires structure and professionalism. Here are actionable tips for building a tutoring business:

• Specialize and Focus: Concentrate on subjects where your child excels. Whether it's math, reading, or science, playing to their strengths ensures they can provide genuine, confident assistance.
• Create Structured Sessions: Don't just "help with homework." Develop simple lesson plans for each session. This could include reviewing a concept, working through practice problems, and ending with a quick, fun quiz to gauge understanding.
• Engage with Creative Tools: Make learning fun. Use flashcards, educational games, online resources, or visual aids like a small whiteboard to explain complex topics. This keeps younger students engaged and makes the sessions more effective.
• Track and Report Progress: Keep a simple log of topics covered and the student's progress. Sharing a brief, positive update with the client's parents after each session builds trust and demonstrates value. Getting testimonials is key for marketing.
• Financial Documentation: As with any business, meticulous financial records are essential for Roth IRA contributions. Log every payment received, date of service, and duration. This documentation proves the earned income necessary for legal contributions.

Key Insight: Tutoring income is classified as self-employment income. Maintaining a clear record of services rendered and payments received is non-negotiable. This ledger is your proof of earned income, which is the sole basis for contributing to a child's Roth IRA.

This venture is ideal for teaching responsibility, communication, and the value of expertise. For inspiration, look into programs like Wyzant, which provides a platform for tutors of all ages to connect with students, showcasing the potential of a knowledge-based business.

5. Arts & Crafts Sales

For the creative child, selling handmade arts and crafts is an excellent way to transform a passion into a profitable venture. This business model allows young artisans to develop their artistic talents while learning essential entrepreneurial skills. From custom jewelry and paintings to seasonal decorations and personalized gifts, the possibilities are limited only by their imagination. This is one of the most rewarding ways for kids to make money by monetizing their innate creativity.

Selling crafts can start small with sales to family and friends and expand to local craft fairs, farmers markets, or online platforms. This path teaches valuable lessons in product development, quality control, marketing, and customer relations, all while generating legitimate earned income.

How to Maximize Success

Turning artistic hobbies into a real business requires a strategic approach. Here are key tips to help your young artist thrive:

• Develop a Signature Style: Encourage your child to find a unique niche or style that makes their products stand out. Consistency in their brand, whether it's through specific materials, colors, or themes, helps build a recognizable identity.
• Price for Profit: Teach them to calculate the cost of goods sold (COGS) by adding up all material expenses for each item. Research what similar handmade items sell for and price their products to cover costs, time, and a healthy profit margin.
• Leverage Online Platforms: With parental supervision, platforms like Etsy (for sellers 13-17 with parental consent) or a dedicated Instagram or Facebook page can showcase their work to a wider audience. This is a great way to handle custom orders and build a following.
• Track Everything: Just like any other business, meticulous record-keeping is vital. Use a notebook or spreadsheet to log every expense (paint, beads, canvas) and all sales revenue. This documentation is the proof needed for the earned income that can be contributed to a Roth IRA.

Key Insight: The profit from selling arts and crafts is self-employment income. Clear, organized financial records are non-negotiable for proving earned income, which is a prerequisite for making legal and compliant Roth IRA contributions for a minor.

This business idea is perfect for a child who loves to create. For inspiration, look at the success of Zandra Cunningham, who started her own natural skincare business, Zandra Beauty, as a pre-teen after creating products in her family's kitchen.

6. Digital Content Creation

In today's digital-first world, creating online content has emerged as one of the most powerful ways for kids to make money. This modern venture allows a child to build a business around their passions, whether it's gaming, cooking, crafting, or comedy. By launching a YouTube channel, blog, podcast, or social media presence, young creators learn invaluable 21st-century skills like video editing, digital marketing, audience engagement, and brand building.

This path offers immense potential for generating significant earned income. What starts as a hobby can evolve into a legitimate business with multiple revenue streams, from ad revenue and sponsorships to affiliate marketing and merchandise sales. It's a prime example of leveraging a genuine interest into a profitable enterprise.

How to Maximize Success

Transitioning from a casual creator to a paid influencer requires strategy, consistency, and a focus on quality. Here are actionable tips for building a successful digital brand:

• Niche Down: Instead of a general "gaming" channel, focus on a specific game like Minecraft building tutorials or Roblox speedruns. A clear niche helps attract a dedicated and engaged audience.
• Consistency is Key: Establish a realistic posting schedule, such as one new video every Tuesday, and stick to it. Consistency builds anticipation and signals to platform algorithms that your channel is active.
• Focus on Quality: Invest time in learning basic video and audio editing. Good lighting, clear sound, and engaging visuals can significantly set a channel apart from the competition and retain viewers.
• Engage with Your Community: Respond to comments, ask for feedback, and create content that your audience requests. Building a loyal community is essential for long-term growth and monetization.

Key Insight: Income from digital content creation, including ad revenue and sponsorships, is considered self-employment income. Maintaining detailed records of all earnings and business-related expenses is non-negotiable for proving the earned income required for Roth IRA contributions.

This entrepreneurial path is exemplified by creators like Ryan Kaji of Ryan's World, who turned toy reviews into a global media empire. His journey underscores the massive potential of this modern money-making method.

7. Babysitting & Childcare

Babysitting is one of the most trusted and traditional ways for kids to make money, teaching profound lessons in responsibility, patience, and time management. It involves supervising younger children for parents, providing a valuable service that generates consistent earned income. This job moves beyond simple tasks and requires a high level of maturity, making it an excellent precursor to more formal employment.

This role builds a young person's reputation within their community. Starting with family friends can quickly lead to referrals, creating a steady stream of clients. The skills learned, from first aid to engaging with toddlers, are transferable to countless future scenarios.

How to Maximize Success

To build a reputable and profitable babysitting service, a young entrepreneur must prioritize safety, preparation, and professionalism. Here are key strategies to stand out:

• Get Certified: Completing a course like the Red Cross Babysitting and Child Care training builds essential skills and boosts parental confidence. Certifications in First Aid and CPR are powerful credentials that justify higher pay rates.
• Start with a Network: Begin by offering services to family, close friends, or trusted neighbors. This low-pressure environment helps build experience and a list of positive references for future clients.
• Create an Activity Kit: Arrive prepared with a "babysitting bag" filled with age-appropriate games, books, or craft supplies. This proactive approach shows initiative and ensures the children are engaged and entertained, making the job easier and impressing parents.
• Financial Documentation: As with any business, meticulous record-keeping is vital. Use a notebook or app to log hours worked, rates charged, and payments received. This detailed log serves as the proof of earned income required for Roth IRA contributions.

Key Insight: Babysitting income is classified as self-employment income by the IRS. Maintaining clear records of every job, including dates, hours, and payments, is the non-negotiable proof needed to legally fund a child's Roth IRA and build a foundation of financial discipline.

This responsible venture is an ideal way for a mature child to learn about service-based work and financial independence. The trust and skills gained are invaluable assets for life.

8. Tech Support & Services

In a world where technology evolves at a dizzying pace, many adults find themselves struggling to keep up. This creates a significant market for patient and knowledgeable tech support, a role that digitally native kids are uniquely positioned to fill. This is one of the most relevant ways for kids to make money, turning their screen time into a valuable, marketable skill.

This business involves helping less tech-savvy individuals, often seniors or busy professionals, with tasks like setting up new devices, troubleshooting software issues, organizing digital photos, or providing tutorials on social media platforms. It's a service-based business built on knowledge, patience, and clear communication.

How to Maximize Success

Transforming a natural aptitude for tech into a profitable venture requires a professional and structured approach. Here are some actionable tips:

• Define Your Service Menu: Start by offering a clear list of services. Examples include smartphone setup, social media profile creation (e.g., Facebook for grandparents), basic computer maintenance, software installation, or Wi-Fi troubleshooting.
• Be Patient and a Good Teacher: The core of this business is not just fixing a problem but often explaining the solution in simple, non-technical terms. Create simple, one-page instruction sheets that clients can keep for future reference.
• Continuous Learning: Technology changes fast. A young tech expert should dedicate time to learning about new devices, software updates, and common security threats to stay valuable to their clients.
• Build a Referral Network: Start with family, friends, and neighbors. A happy client is the best marketing tool. Offer a small discount for successful referrals to build a client base in the local community.

Key Insight: Payment for tech services is clear self-employment income. Each service call should be documented with the date, client, service provided, and payment received. This record-keeping is non-negotiable for proving earned income for Roth IRA contributions.

This venture not only provides income but also develops crucial soft skills like patience, empathy, and customer service. For inspiration, look at programs like Cyber-Seniors, which connects teen mentors with seniors needing tech help, demonstrating the impact and demand for this type of service.

9. Garage Sale & Reselling

The concept of "buy low, sell high" is a cornerstone of commerce, and garage sale or thrift store reselling is one of the most practical ways for kids to make money by applying this principle. This entrepreneurial venture, often called "flipping," teaches invaluable skills in market research, negotiation, valuation, and digital marketing. It's a tangible introduction to the world of arbitrage where profit is generated from price differences between markets.

A young reseller can start by scouring local garage sales, flea markets, and thrift stores for undervalued items and then listing them on platforms like eBay or Facebook Marketplace for a profit. This business model offers a direct and powerful lesson in calculating profit margins and understanding asset value.

How to Maximize Success

Transforming casual flipping into a steady income stream requires a strategic approach. Here are actionable tips for young resellers:

• Develop a Niche: Focus on a category the child knows and loves, such as vintage video games, collectible toys, brand-name clothing, or old books. This expertise makes it easier to spot hidden gems and value them accurately.
• Master Market Research: Before buying, use the eBay app to scan barcodes or search for similar "sold" listings. This reveals an item's current market value and helps avoid poor investments.
• Presentation is Key: Clean the items and take high-quality, well-lit photos from multiple angles for online listings. A clear, honest description detailing any flaws builds trust with buyers and helps secure a better price.
• Track Everything Meticulously: To legally contribute to a Roth IRA, all income must be documented. Use a simple notebook or spreadsheet to log the purchase price of each item, selling price, platform fees, and shipping costs. The resulting net profit is the child's earned income.

Key Insight: Reselling profit is classified as self-employment income by the IRS. Maintaining detailed records of every transaction is not just good for business; it is the non-negotiable proof required to demonstrate the earned income that makes your child's Roth IRA contributions legitimate.

This venture is ideal for children who enjoy treasure hunting and have a knack for spotting deals. For inspiration, look at the stories of young entrepreneurs on platforms like the eBay for Business podcast, which often features sellers who started at a young age.

9 Ways for Kids to Make Money Comparison

Business Type	Implementation Complexity 🔄	Resource Requirements ⚡	Expected Outcomes 📊	Ideal Use Cases 💡	Key Advantages ⭐
Lemonade Stand & Food Sales	Low – Basic setup and sales 🔄	Low – Ingredients, location ⚡	Moderate – Immediate cash flow 📊	Kids 6-14, community events 💡	Teaches basics, instant income ⭐
Pet Care Services	Moderate – Scheduling & reliability 🔄	Low – Minimal supplies ⚡	Consistent – Repeat customers 📊	Ages 10-17, animal lovers 💡	Builds responsibility, high demand ⭐
Lawn Care & Yard Work	Moderate – Physical effort & tools 🔄	Moderate – Lawn tools, equipment ⚡	High – Good earning potential 📊	Teens 12-18, neighborhood services 💡	Work ethic, scalable service ⭐
Tutoring & Academic Help	Moderate – Prep and communication 🔄	Low – Knowledge, materials ⚡	Moderate – Hourly income, skill growth 📊	Teens 13-18, academic strengths 💡	Reinforces learning, good rates ⭐
Arts & Crafts Sales	Moderate – Creation time 🔄	Low – Materials, craft supplies ⚡	Variable – Per item sales 📊	Ages 8-18, creative expression 💡	Encourages creativity, personal satisfaction ⭐
Digital Content Creation	High – Content planning & tech 🔄	Low to moderate – Tech devices ⚡	Variable – Potentially high income 📊	Teens 10-18, digital skills focus 💡	Global audience, multiple income streams ⭐
Babysitting & Childcare	Moderate – Responsibility 🔄	Low – Basic care supplies ⚡	Consistent – Hourly income 📊	Teens 12-17, responsible caretaking 💡	Builds maturity, good hourly rates ⭐
Tech Support & Services	Moderate – Technical skills & patience 🔄	Low – Devices and knowledge ⚡	Moderate – Hourly income 📊	Teens 13-18, tech literacy focus 💡	High demand, skill building ⭐
Garage Sale & Reselling	Moderate – Research and sales 🔄	Low – Initial capital ⚡	Variable – Profit from reselling 📊	Teens 12-18, market research interest 💡	Develops negotiation, quick profits ⭐

Final Thoughts

The journey from a simple idea, like selling lemonade or offering pet-sitting services, to making a first Roth IRA contribution can seem vast. Yet, as we've explored, the path is paved with practical, age-appropriate, and entirely achievable steps. The core takeaway from this extensive guide is that the most effective ways for kids to make money are not just about earning a few dollars; they are about building a foundation of financial literacy, entrepreneurial spirit, and long-term security.

We've moved beyond generic advice, offering concrete strategies for everything from a classic lemonade stand to modern digital content creation. The real power lies in treating these childhood ventures as legitimate small businesses, complete with proper documentation, fair market wages, and a clear understanding of IRS compliance. This professional approach is what transforms a simple summer job into a powerful wealth-building engine.

Key Takeaways for Building Your Child's Financial Future

To distill our journey into its most critical components, remember these guiding principles:

• Legitimacy is Paramount: The key to unlocking a Roth IRA for your child is legitimate earned income. This means the work must be real, the pay must be fair market value, and you must maintain meticulous records. This isn't just about following rules; it's about teaching integrity and the real-world mechanics of business.
• Documentation is Your Best Friend: From simple invoices for lawn care to spreadsheets tracking online sales, clear records are non-negotiable. They are your proof of earned income for the IRS and serve as an invaluable teaching tool for your child, demonstrating how businesses track revenue and expenses.
• Start with Their Passion: The most sustainable kid-run business is one fueled by genuine interest. A child who loves animals will excel at pet care, while a young artist will pour their heart into creating crafts to sell. Aligning the work with their passions ensures motivation remains high and the lessons learned are more profound.
• The Goal is More Than Money: While the financial outcome is a primary motivator, the process itself is rich with educational value. Your child is learning about marketing, customer service, time management, pricing strategy, and the direct correlation between effort and reward. These are life skills that will serve them far beyond their earning years.

Your Actionable Next Steps

Feeling inspired? The best time to start was yesterday. The next best time is right now. Don't let the details overwhelm you; instead, focus on taking the first simple step.

1. Initiate the Conversation: Sit down with your child and discuss the ideas from this article. What excites them? Use their interests as the starting point to brainstorm a viable micro-business.
2. Create a Simple Plan: Together, outline the basics. What service or product will they offer? Who are their potential customers (neighbors, family friends)? How much will they charge? Keep it simple to start.
3. Establish a Tracking System: Whether it's a dedicated notebook or a simple spreadsheet template, set up a system for recording every dollar earned. Note the date, the customer, the service provided, and the amount paid. This is your foundational step toward IRS-compliant documentation.

Ultimately, guiding your child through their first earning experiences is one of the most impactful gifts you can provide. You are not just helping them find ways for kids to make money; you are empowering them with the knowledge and confidence to build a secure financial future, one job, one sale, and one investment at a time. The power of compounding, especially when started in childhood, is a financial superpower. By taking these steps, you are giving your child a multi-decade head start on a life of financial well-being and independence.

Disclaimer: We are not a financial advisor and we do not provide financial advice. The information provided here is for educational purposes only. Please consult with a qualified financial professional before making any investment decisions.

---

Ready to turn those hard-earned dollars into a lifetime of tax-free growth? RothIRA.kids provides the tools and guidance to seamlessly open and manage a Custodial Roth IRA for your child. Visit RothIRA.kids to see how our platform simplifies the process, helping you invest in your child’s future today.