Ways for 16-year-olds to earn money

teen

Sixteen is when full-time summer work and substantial school-year hours are legal. Most teens can clear $5,000-12,000 in a year of working part-time + summers — enough to fund a Roth IRA and a car.

Labor law for age 16

Federal: 16-17 year olds can work unlimited hours in non-hazardous jobs (no time-of-day or weekly hour caps). Driving for the employer (delivery) is still age 18 minimum. Hazardous work (heavy machinery, mining, etc.) is age 18 minimum.

12 ideas

Each idea below shows realistic pay, time commitment, and how much parent help is needed. Pay ranges are starting points — adjust to your local cost of living and your kid\'s experience level.

Physical / outdoor

Full part-time job (no hour limits)

$250–$600/week

⏱ 25 hr·On their own

Restaurant server / busser (tip-eligible)

$15–$30/hour

Start-up $30·⏱ 6 hr·On their own

With tips, often best $/hr available to a teen.

Lifeguard (WSI cert)

$15–$24/hour

Start-up $250·⏱ 4 hr·On their own

Lawn-care business (full operations)

$400–$1200/week

Start-up $500·⏱ 25 hr·On their own

Summer-peak with multiple crews.

Camp / day-program staff (paid)

$350–$700/week

⏱ 40 hr·On their own

Around the house

Driving for family errands (with license)

$10–$20/job

⏱ 1 hr·On their own

Neighbor / community

Premium babysitting / nannying

$18–$35/hour

Start-up $35·⏱ 5 hr·On their own

Tutoring & teaching

Tutoring (high-rate, junior-year subjects)

$20–$60/hour

Start-up $30·⏱ 1 hr·On their own

Music / instrument lessons (teaching)

$25–$60/hour

Start-up $30·⏱ 1 hr·On their own

Online

Online creator (TikTok, YouTube, Twitch)

$0–$2000/week

Start-up $200·⏱ 12 hr·Minimal parent help

Most earn very little; the small percentage who break through can earn substantially.

Etsy / online shop (independent)

$100–$1500/week

Start-up $200·⏱ 4 hr·Minimal parent help

Web/app dev freelance (Upwork, Fiverr)

$30–$100/hour

⏱ 6 hr·Minimal parent help

Pricing tip

At 16, the hourly-rate gap between minimum-wage retail and skilled work is huge — $14 vs. $40. If they have any specialized skill (coding, tutoring, music), prioritize that work. The hours saved free up time for other things (sports, college prep, sleep).

Tax note

A 16-year-old with $7,000+ in earned income should max the Roth IRA every year. At 16, $7,000 in a Roth becomes ~$235,000 at 65 (8% historical). Doing this for 3 years (16, 17, 18) leaves them with $700K+ at retirement on those contributions alone.

The parent angle

Sixteen is the year to start the "you're becoming financially independent" handover. They're earning enough to cover their own phone, gas, social life. They're old enough to handle a real Roth IRA conversation, a credit-builder card, and the start of a savings plan toward whatever comes after high school.

Frequently asked

How many hours can a 16-year-old legally work?

Federal law: no limit for 16-17 year olds in non-hazardous jobs. State law may add restrictions during school. In most states, a 16-year-old can work 35-40 hours/week year-round legally.

What's the best job for a 16-year-old?

Tipped service jobs (restaurants, baristas) are often the highest-earning per hour ($20-30 with tips). Lifeguarding pays well per shift ($15-24/hour) with reliable summer hours. Both beat retail ($14-16) and fast food ($14-17) by a meaningful margin.

Should a 16-year-old save for a car or a Roth IRA?

Both — but Roth first if you can only do one. The compounding asymmetry (decades of growth) makes maximizing Roth at 16 worth dramatically more than at any later age. Car money is real but recoverable; Roth contribution years are gone forever.