Ways to Make Money as a Teen and Common Mistakes

Teens 13–17 · Mistakes to avoid · Updated October 1, 2026 · LearnLife Editorial

Why Do Teens Often Make Money Mistakes When Starting Out?

Teens often make mistakes when they start earning money because of limited experience and eagerness to start fast. It can be exciting to have your own income, but without knowing the rules about work permits, taxes, or safe job types, it’s easy to make errors. For example, a 15-year-old might accept a job that requires them to work late nights, which is illegal and could cause problems for both the teen and their employer. Another common issue is rushing into online offers without verifying if they are legitimate. Peer pressure or wanting quick cash can also push teens to accept risky opportunities.

Concrete Steps:

• Before accepting any job, ask the employer questions such as: “Am I old enough for this job? Do I need a work permit? How many hours am I allowed to work?”
• Talk to a parent, guardian, or school counselor who can help review job offers and explain rules.
• Research the job or company online by typing its name followed by “reviews” or “scam.”
• Make a list of your priorities, like school and rest, and check if the job fits around them.

Having this knowledge helps teens make better choices and avoid costly mistakes.

What Happens When You Ignore Work Age and Labor Laws?

Child labor laws vary by state but generally limit the types of jobs teens can do and the hours they can work during school days and vacations. For example, many states require teens under 16 to get a work permit before starting a job. Employers who hire underage workers illegally can face fines or lose their licenses, and teens might lose the job or face unsafe conditions. Working too many hours can cause fatigue and hurt school performance, especially if the job interferes with sleep or homework.

What It Costs:

• Loss of income if the job is shut down
• Legal trouble for the employer and possible loss of your job
• Risk of injury or stress from unsafe or excessive work hours
• Missed schoolwork and lower grades

What to Do Instead:

• Check your state’s child labor laws on official government websites or through your school career office.
• Obtain a work permit if your state requires one; this usually involves filling out a form with your employer’s info and school approval.
• Only work during hours allowed by law, such as no more than 3 hours on a school day or 8 hours on weekends for younger teens.
• Avoid hazardous jobs like operating heavy machinery, working with chemicals, or driving at work if underage.

For instance, a 14-year-old may work as a cashier or babysitter but cannot work in a factory. Following these rules protects your health, education, and legal standing.

What Are the Risks of Falling for Online Job Scams?

Online job scams are common and often target teens who want easy money. Scammers may offer jobs that promise large pay for little work but require you to pay money upfront for “training” or “equipment.” They may also ask for personal information like your Social Security number or bank account details, which can lead to identity theft. For example, a teen might receive a message offering a secret shopper job but must pay a fee to get started. After paying, the scammer disappears.

What It Costs:

• Losing money paid upfront
• Theft of personal information leading to long-term problems
• Emotional stress from being scammed

What to Do Instead:

• Never pay money to get a job or to receive “training.” Legitimate jobs do not ask for upfront fees.
• Research the company using search engines and check for complaints or scam reports.
• Ask a parent or a trusted adult to review any online offers before responding.
• Watch out for vague job descriptions, pressure to act immediately, or requests for sensitive information early on.

Using reputable websites for teen jobs or gigs helps reduce scam risk. For example, platforms that verify employers and have safety policies are better choices. The article on how to spot a scam for teens online gives more examples and warning signs.

Why Is Poor Time Management a Money Mistake?

Balancing work, school, and personal life is a real challenge for teens. Working too many hours or at inconvenient times can cause missed homework, lower grades, and burnout. For example, a teen who works 20 hours a week after school might find they have little time or energy for studying or extracurricular activities. Overcommitting to work can also cause stress and affect mental health.

What It Costs:

• Lower academic performance and possible school consequences
• Risk of job loss if work quality drops
• Increased stress and fatigue, affecting overall well-being

What to Do Instead:

• Create a weekly schedule that includes school, study time, work hours, and rest. For example:

1. School 8 a.m. to 3 p.m.
2. Homework 4 to 6 p.m.
3. Work 6:30 to 8:30 p.m. on weekdays, longer on weekends

• Communicate clearly with your employer about your availability and school priorities.
• Start with fewer work hours (like 5-10 hours per week) and increase only if you handle it well.
• Use calendars, planners, or apps to track commitments and deadlines.
• Prioritize sleep and free time to avoid burnout.

Developing these scheduling habits protects both your education and your job performance.

How Does Not Tracking Earnings and Expenses Hurt You?

Without tracking your money, it’s easy to lose control of your finances. For example, if a teen earns $80 a month but spends it all on fast food and entertainment, they might have no money left for necessities or savings. Also, if you have a formal job, you may owe taxes or have to file a tax return, and not knowing your income can cause problems.

What It Costs:

• Overspending and possibly running out of money
• Missed tax responsibilities or penalties
• No savings or emergency fund for unexpected needs
• Difficulty planning for larger expenses like a phone or college

What to Do Instead:

• Keep a simple record of your income and expenses. Use a notebook or free apps to log every dollar earned and spent.
• Create a budget that includes savings goals, for example, “Save 20% of all earnings.”
• Save pay stubs or bank statements if you work a formal job.
• Learn basic tax rules for teens by visiting IRS.gov or asking a parent for help.
• Review your budget weekly to adjust spending and increase savings.

For example, if earning $100 a month, set aside $20 for savings, $50 for essentials, and $30 for fun. This builds control and financial understanding.

What Are the Consequences of Not Saving or Investing Early?

Spending all your earnings without saving means missing opportunities to build financial security or grow your money. For instance, saving just $10 a week starting at age 14 can add up to over $2,000 by age 18. If that money is in a savings account or safe investment, it could earn interest, increasing your total. Starting to save and invest early builds habits that will help throughout life.

What It Costs:

• No emergency fund for unexpected expenses
• Less money for important goals like college, a car, or a phone
• Missed chance to learn and benefit from investing early

What to Do Instead:

• Open a teen savings account at a bank or credit union.
• Set clear savings goals with deadlines, such as “Save $500 for a laptop in one year.”
• Save a fixed percentage or amount of your earnings regularly.
• Consider custodial investment accounts with a parent’s help to learn about low-risk investing.
• Use piggy banks or envelopes for saving cash to reinforce the habit.
• Educate yourself on basic investing through resources like Investor.gov.

Small, consistent savings grow over time and prepare you for bigger financial responsibilities.

How Can You Recover If You Already Made a Money Mistake?

Making mistakes is part of learning, and recovery starts with recognizing the problem and taking action. If money was lost in a scam, report it to the FTC at ReportFraud.ftc.gov and tell a trusted adult. Change passwords and monitor your accounts for suspicious activity. If you worked illegally or too many hours, talk to your employer about adjusting your schedule or look for legal jobs. If you overspent, start tracking your money and create a budget now.

Example:

• Lost $50 in a fake online job: Report the scam, stop communication, and warn friends.
• Worked excessive hours and missed school: Reduce work hours and focus on school, then slowly increase work when ready.
• Overspent earnings: Track all spending for a month and create a budget with clear limits.

Accepting help from adults and learning from mistakes builds stronger money skills for the future.

What Habits Help Prevent Money Mistakes in the Future?

Developing consistent habits protects money and time. These include:

• Researching jobs and companies before agreeing to work
• Asking adults to review contracts or offers
• Setting financial goals and tracking progress regularly
• Scheduling work hours around school and rest
• Avoiding any job or investment that asks for money upfront
• Staying informed about scams and labor laws through trusted websites
• Keeping records of earnings, expenses, and hours worked

By practicing these habits, teens build solid money management skills and reduce risks.

Frequently asked questions

Can teens work any job they want?

No. Jobs depend on your age and state laws. Some jobs, like driving or heavy machinery, are off-limits for younger teens. Always check your state’s child labor laws and get a work permit if required. Schools or local labor offices can help find legal jobs.

How can a teen know if an online job offer is a scam?

Be cautious if the job asks for money upfront, promises very high pay for little work, or requests personal info like your Social Security number early. Research the company online for reviews or complaints and ask a trusted adult before sharing info or paying anything.

Do teens have to pay taxes on what they earn?

If your income is above certain limits, yes. Employers usually withhold taxes. If self-employed, such as babysitting or selling crafts, filing a tax return may be necessary. Ask a parent for help or visit IRS.gov for teen tax rules.

What is a good way for teens to save money?

Save a set percentage of your earnings regularly, even if small. Use a savings account or piggy bank and avoid spending all your money. Setting a goal, like saving $300 for a new phone, helps stay motivated.

How many hours can a teen work during the school year?

Child labor laws limit hours to protect schooling. For example, many states allow 3-4 hours on school days and up to 8 hours on non-school days. These rules vary, so check your state’s laws and follow work permit requirements.

What should a teen do if they lost money to a scam?

Tell a trusted adult and report the scam to the FTC at ReportFraud.ftc.gov. Change any passwords or financial info you shared. Keep records of what happened. Learning from the experience and being cautious helps protect you next time.