Research from Simply Business suggests that three-quarters of 16 to 19-year-olds have ambitions to start a business, with 36% already making money from side hustles.[1]
And, these days, it’s not just teenagers thinking about making money. If your kid child has ever asked you “how can I make some cash?”, you're not alone.
While it can be a tricky question to answer, it also opens the door to important life lessons about responsibility, independence, and long-term financial habits.
With the right support, upcoming generations can learn a lot about financial literacy early on, giving them the confidence to learn to save and invest. This sets the scene for financial security down the line.
Whether your kids want to earn extra pocket money, save for something special, or simply learn the value of hard work and perseverance, there are plenty of practical ways you can support them in getting started.
In this guide, we’ll explore different ways for your kids to make money, taking into account a variety of ages and approaches, as well as how a Junior ISA (JISA) could help turn their early income into lasting wealth.
Jump to:
- Why children should start earning money
- Ways for kids to make money
- How kids can make money online
- Pocket money for the short term
- Building their wealth for the long run
- Budgeting for kids
- Summary
Why children should start earning money
From the moment your child first realises money can be exchanged for toys and chocolate, they’re likely to want more of it.
As they get older – developing their own talents and ambitions – that desire might just morph into career aspirations, too. While it may seem a bit early to be talking about side hustles and income streams, there can be huge value in showing kids how to earn their own money from a young age.
Not only does it give them a sense of independence, but it also builds practical life skills: confidence, time management, and an understanding of what things cost.
Better yet, it’ll help them understand positive financial habits like saving, budgeting — and even investing.
Ways for kids to make money
Of course, things like helping with chores – from weeding the garden to walking the dog – will always be popular and reliable for a reason.
Other ideas include washing cars, babysitting for family friends, and even tutoring younger children (or siblings) in the subjects they’ve already completed.
These tasks are good because they don’t require special equipment, just a bit of initiative and commitment.
Even offering services like helping an elderly neighbour with their bins can lead to regular, paid opportunities. What’s more, it might just teach your child important lessons around the value of work and community, as well.
The key to this is encouraging your child to think about what they’re good at — and how they can hone and build that skill in exchange for money.
How kids can make money online
Now, the elephant in the room.
There’s one way kids can make money today that hasn’t existed for many previous generations: online.
While many Gen Alpha kids dream of becoming influencers, not all parents are comfortable with the privacy risks (understandably). What’s more, it’s far from a guaranteed income stream.
Getting caught up in follower counts and subscriber numbers isn’t always beneficial for children’s self-esteem. Still, there are other ways for your children to get involved in making money online that don’t require sharing their image.
To protect their child's online details, parents can set up and manage accounts using their own information, with kids observing how things like testing video games, running a craft shop, or selling second-hand clothes and toys actually work. The parent handles all transactions and passes any earnings to the child.
Creative kids might enjoy designing printable products, while tech-savvy ones could offer basic digital skill training to family or friends—with parents handling the platform and payments in all cases. If you have a future Shakespeare on your hands, maybe you could even help them set up a paid-for subscriber newsletter (with the parent or legal guardian using their own information and managing the account, as with all these activities).
These options allow kids to learn valuable skills, build their own money, and still stay safe online.
Pocket money for the short term
Not every money-making idea needs to be a long-term venture.
For many kids, earning a bit of extra cash is simply about saving up for something fun – whether that’s a new toy or game, a book, or the latest gadget.
This is where pocket money comes in.
Short-term opportunities help children learn the value of their time and effort, without requiring a big commitment. It also gives children a chance to explore what kind of work they might enjoy.
A simple question like “what do you want to buy with the money you earn?” can encourage them to get into the habit of saving. It can also prompt them to think more about how they might make a living as an adult.
As we’ve covered, there are plenty of ways children can earn small amounts regularly. In the next section, we’ll look at some ways you can help your child build a secure financial future.
Building their wealth for the long run
While earning pocket money is a great start, it’s also worth thinking bigger; teaching your child about investing now could give them a serious head start later in life.
Opening a Junior ISA for them is one way to do this, as even small, regular contributions could potentially grow into a significant sum over time.
With Wealthify’s Junior ISA, for example, if you invested £20 a month from the birth of your child until they turned 18 (when they’re able to access the money), they’d have a projected value of £7,130 upon reaching adulthood (based on a total contribution amount using our Original Plan and Confident investment style. Your child could get back less or more than this, depending on market performance.)[2]
For example, if the markets were to perform worse, then your child could get back £5,362, or if they perform better, they could get back £9,670.
The projected values show the possible future value of your Plan in different market conditions. These are only forecasts and not a reliable indicator of future performance.
With investing, your capital is at risk and you could get back less than you put in.
But this is about more than just money: it also teaches long-term, big-picture thinking.
Helping your child understand how investing works (with the added plus of letting them literally see their savings grow) can build habits that last a lifetime.
Whether it’s dividends or compound growth, you’re showing them that money isn’t just for spending.
It’s a tool for building a future, and – crucially – something that takes time.
Budgeting for kids
Once your child starts making money (even if it’s just a little), it’s worth introducing basic budgeting habits. Since they’re not likely to have any expenses, it’s helpful to use a simple rule to split their earnings.
One idea is the 70/30 rule. Here's how it works:
- 70% of their money can be used for short-term spending, meaning it can be spent on things like toys, treats or outings.
- The remaining 30% is set aside for long-term goals or investing, such as in a Junior ISA.
This approach teaches kids how to enjoy their money while encouraging them to think ahead. It also helps them build the habit of saving before they can get used to spending everything they earn.
You can keep them looped into their digital accounts (or use jars, if you’re working with cash) so they can see how their money is divided in real time.
Whatever method you choose, the goal is to help them make smart money choices from an early age.
Summary
Helping your child get to grips with the world of work and finances goes beyond loose change and piggy banks. In the long run, it presents an opportunity to develop financial literacy, instil ambition — and even help them work towards building future wealth.
From simple household chores to online side hustles and creative ventures, there are plenty of age-appropriate ways for kids to earn.
And while short-term goals are great, thinking long-term is even better.
Opening a Junior ISA for your child can be a simple, effective way to help grow their money for the future – whether it’s for university, a first car, or something else entirely.
If you’re ready to give your child a head start with their savings, find out how a Junior ISA can help turn small steps into big opportunities.
With investing, your capital is at risk, so the value of your investments can go down as well as up, which means you could get back less than you initially invested.
Wealthify does not provide advice. If you’re not sure whether investing is right for you, please speak to a financial adviser.
References
- Simply Business | Rise of Young Entrepreneurs
- Projection based on initial investment of £20, and monthly investment amount of £20, with an Original Wealthify plan and Confident investing style. The projected values show the possible future value of your Plan in different market conditions. These are only forecasts and not a reliable indicator of future performance. With investing, your capital is at risk and you could get back less than you put in.
