Passive income. We all want it, but it can be tricky to find the perfect idea to make money on autopilot.
Luckily, there are many different ways for teens to make money and earn passive income.
In this post, I'll explore some of the best passive income ideas for teens, easy ways to make passive income, and much more. Let's get started!
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What is Passive Income?
Before we discuss passive income opportunities, it's critical to understand what this income source is in reality.
Passive income is money that comes from a business in which you are not actively involved. The difference between passive income and active income is the amount of work needed to make money.
For adults, this often means rental properties, investing in stocks, or other business opportunities. For teenagers, it might mean something different.
With passive income, you'll need to dedicate a significant amount of time or money to get the ball rolling.
Once you've put in the work, you can sit back and reap the rewards from your efforts.
For example, let's say you decide to start a blog. The costs to start a blog are very low, but you'll need to spend a significant amount of time creating content and promoting your site if you want to start earning passive income from it.
With passive income, you can make money while you sleep – which is highly attractive for most people.
What Can You Do With Passive Income?
As a teenager, you have a few options for the money you earn with passive income.
If you don't have to support yourself entirely yet, there are a few things you can do. It's critical to carefully weigh your options when it comes to funds at this age.
With passive income, you can:
- Save: You can put the money in a savings account for later.
- Invest: You can invest in the stock market or take advantage of other investment opportunities.
- Spend: You can spend it on what you want, whether that's food or gas money.
You can also combine these, working to make your money work for you.
It's always okay to spend the passive income you earn, but remember that that money won't be there for you in the future. Investing or saving at least a small part of your earnings will ensure you have financial security as you inch closer to adulthood.
Best Ways to Earn Passive Income as a Teenager
Let's dive into some of the best ways to earn passive income. When you know what you're looking for, earning passive income is a piece of cake. Each of these methods might work best with a different lifestyle, so you should be able to find something no matter what your reality looks like.
The best passive income ideas are the ones that require the least effort to start-up and earn. Here are a few that will give you the best shot at financial independence, even as a teenager. It's never too early to start earning an income!
Start a Blog
Teens who love writing and have access to a computer might think about starting a blog and writing articles.
Starting a blog costs very little and can be an excellent way to make passive income as a teenager.
To get started, you'll need to purchase a domain name and hosting. I recommend securing your domain from Namecheap. They are the most affordable option which is perfect for teens. You can purchase hosting from SiteGround. They offer extremely fast services and are very affordable for beginner bloggers.
Once you've acquired your domain and purchased hosting, you can install WordPress on your site completely free. That will make managing your content simple and allow you to get up and running in less than a few hours.
Then you can select a theme for your blog and start creating content for your site.
To generate income from your blog, you can use display ads, affiliate marketing, or offer sponsored content to advertising partners.
By having multiple passive income streams from your blog, you can make tremendous money from your efforts.
Some blogs make over $50,000 a month – which is a crazy income for many teens.
Blogging takes a little more effort than other items. It won't be successful right away, so patience is critical with this remote side hustle.
Try Pet Sitting
What's better than hanging out with animals all day?
If you're a huge fan of pets, you can offer to watch pets to earn passive income. They're easier to deal with than kids, and you won't have to do much to ensure they're staying out of trouble.
Pet sitting is a super fun job and an incredible way to make a passive income. You'll also make people feel much more comfortable leaving their fur babies at home.
To get started, I recommend registering with a platform like Rover. You'll be instantly connected to people who are looking for pet sitters in your area.
So, how much money can you make?
It's possible to earn a few hundred dollars a week with this passive side hustle – so it's certainly worth your time.
Start a YouTube Channel
If you're passionate about a topic, make videos about it and pst them on YouTube!
If you're creative and know how to promote your channel, you can make a great income from YouTube.
Consistency is vital when it comes to this high paying social media platform. Audiences are more likely to watch a content creator who posts regularly than one who does not.
You'll also want to understand some basic video editing skills so you can create high quality YouTube videos and attract viewers.
How do YouTube channels make money?
Between ad revenue and affiliate marketing, you can start earning money from your channel in no time.
Growing a YouTube channel can take time, so don't give up too soon. Check out the video below to learn how to grow your channel!
Invest in Dividend Stocks
The stock market is an ideal way to make an income without having to work for it.
If you're more interested in saving for the long run, dividend stocks are the way to go.
For this method, you will need to make an initial investment – but with most platforms it's not much. In fact, Acorns allows you to get started with just $5.
There are a million ways to invest in the stock market, so ensure you do your research before picking any investment. You might even talk to your parents to see if they have any experience investing in the stock market. If they've been investing for a while, they can help you make the best decisions for your future.
If you're under the age of eighteen, you will need help from your parents before you get started. If you're eighteen or older, you can make an account and start making your investments immediately.
To get started, I recommend using Acorns. You'll get $10 completely free to invest when you create a new account. Who doesn't want some extra cash to invest? Create your account below to get started!
Invest in Real Estate
Real estate is another great option to generate passive income as a teenager.
You can use a platform like Fundrise to easily invest in real estate without the hassle of managing a property and tenants.
Best of all, they're giving new investors $10 completely free to invest and you only need $10 to get started.
Just as you can take surveys online for income, you can also play games to make semi passive income.
Many survey sites will also let you make money playing games so you don't need to find a new platform to earn money with this method.
If you're good at video games, streaming videos and earning money from advertisements is a simple way to profit from your passion. You can make tutorials, participate in tournaments, and even write blogs about the games you like to boost your income as a teen.
There are also a few websites, like survey sites, that offer funds for playing games. Of course, it's critical to note that these sites don't make you rich but they can be a fun side hustle to make a few bucks when you have some extra time.
Affiliate marketing is another excellent way to make money passively for teens. To become an affiliate marketer, you will first need to build a loyal following. This can be a blog, YouTube channel, podcast, or email list.
With affiliate marketing, you'll get paid a commission for sales that you help facilitate.
For example, if you own a blog or create a YouTube channel and promote an affiliate program, each time a sale occurs, you'll earn a small portion.
A company will typically send you an affiliate link that you can post on your site. From there, viewers have the chance to click on the link and buy the product. Per purchase, you can make 1%-40% profit per sale.
Some of the most popular affiliate programs include:
- Amazon Associates
With enough clicks, affiliate marketing can become an excellent source of passive income for the average teen.
Some people make thousands each month from affiliate marketing making it one of the best passive income ideas for teens.
Rent Out Your Car
If you have a car, you can consider renting it out to earn passive income without having to do any work.
By using platforms like Turo or Getaround, you can list your car for rent and set your own hourly or daily rates.
It's possible to make an extra $500 a month or more by renting your car, so why not give it a try?
Get Paid to Shop
While saving money isn't necessarily a passive income source, it's extremely close.
By using a platform like Ibotta you can save money automatically without having to do anything.
You can earn anywhere from 1% to over 10% back on all of your purchases.
Sign up below and collect some free cash today!
Sell Stock Photos
Want to get paid to take pictures? Selling stock photos is an excellent passive income idea for teenagers to make extra money.
There are plenty of options to sell your photos. You can open up a website where you sell photography, or you can open up an Etsy shop where you advertise the pictures you take. It doesn't matter what you take pictures of – there is someone out there who will use them.
There are also several websites, such as Shutterstock and Adobe Photo, that offer to pay photographers for their images. All you need to do is apply, upload, and wait for someone to purchase the picture.
If you want to start making money and reach financial freedom from passive income, selling stock photos is a superb option.
Sell Digital Products
Digital products can be a great way to start making money online as a teenager.
This can include anything from printables to ebooks to woodworking plans.
With digital products, you create the product once and it's yours to sell forever.
You can then sell this product over and over again as many times as you'd like without having to do any additional work.
There are many platforms, like Etsy and Shopify, that allow you to sell your products online.
You'll need to spend some time creating your products or you can hire someone to complete the design work for you but once it's complete you can make passive income for your lifetime.
Sell Online Courses
If you have something you can teach, consider making online courses to earn passive income.
An online course is similar to a digital product expect in video format.
There are plenty of subjects you can create an online course on, including cooking, fitness, business, and more.
For example, if you're a personal trainer, you can create an online course that teaches people how to get in shape.
If you've built a successful business, consider creating a course that tells others how to follow in your footsteps. The possibilities are endless.
There are also several platforms, such as Teachable or Podia that allow you to create and sell your courses.
It will take some time to build your course but once it's complete, you can sell it over and over again as many times as you'd like.
Check out the video below to learn more about selling courses online to make passive income.
Take Online Surveys
There are many ways to make passive income online. One of the easiest is by taking online surveys.
While this isn't a 100% passive source of income, some people might consider it to be because it can be done when doing other things.
For example, if you're looking to make money at school you can take a few surveys between classes.
Use Passive Income Apps
Passive income apps can be a great way to earn extra cash whenever you have some free time.
These apps can help you make more money in a variety of ways depending on your circumstances.
For example, by downloading the Nielsen Panel app you can earn up to $50 per device by letting the software run in the background of your device. This is one of the easiest ways to earn extra money if you have a phone or computer.
Start a Small Business
Starting a business won't be passive at first, but over time it can become more and more passive.
For example, if you start a pressure washing business – you might need to do all of the work at first.
Over time, you can hire employees to help complete work so you don't have to do it all.
There are plenty of low cost businesses you can start for $1,000 or less and they can be great ways for teens to make passive income.
Where Should You Keep Passive Income?
So, where should you keep the passive income you earn? What's the best spot for your new income as a teenager? There are a few locations we recommend for your passive income. These spots will keep your money safe and help you prepare for your future adult life.
A few of the best places to keep passive income include:
- Savings account: A savings account will keep your passive income safe and collect additional funds over time, increasing the value of what you have saved. My favorite account is through CIT Bank.
- Investment portfolio: You can also invest in items like the stock market or real estate investing, forming a portfolio that may increase in value. I recommend Acorns to invest in the stock market.
- Roth IRA: For retirement purposes, you can start putting money in a Roth IRA. This method will help you have close to a million dollars when you retire if you put in income consistently.
If you have trouble trusting these sources, you can always hang on to the cash yourself and store your money at home. When you need it, you can pay in cash.
Final Thoughts on Passive Income for Teens
If you want to earn money and create multiple income streams without having to work a significant number of hours, passive income is the way to go.
Between selling video courses, investing, taking online surveys, and more, there are plenty of ways you can make passive income as a teenager.