Passive income for teens (Making money under 18)

How can you make passive income as a teenager?

Make passive income as a teenager by building an income generating assets prior to turning 18. When you turn 18, you will be able to flip the monetization switch and immediately earn income. Alternatively, your parents can help you set up custodial accounts for investing.

Wouldn’t it be nice to build an asset during your teenage years that enables you to pay for college? What if this asset made you enough money that you never needed a job?

Unfortunately, making money before you become 18 isn’t the easiest. Certain laws and regulations limit what teenagers can do to earn money.

Fortunately for you, I’m going to show you different ways you can earn money as a teenager. In most cases, you’ll be able to have an asset ready to go when you turn 18. Most people wait until they’re older to start focusing on money, but everyone wishes they started sooner.

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How to make passive income online as a teenager

Make passive income as a teenager by building a digital asset in your early teens and monetizing when you turn 18. At eighteen, you’ll be able to monetize different assets which pay consistent income. Use income generated to invest into income producing assets to further your income potential.

As a teenager, you’ll never have more time or energy. Unfortunately, as you get older you are going to have responsibilities like work or family. For most adults, working a nine-to-five and having a family is extremely draining.

You have the blessing of time. You can use your time to get started and build an asset today, so you don’t have to work so hard later.

For example, let’s assume at 16 years old you decided to start a blog. Over the course of 2 years you are able to turn that blog into a website generating 100,000 page views.

A website generating 100,000 page views should be able to generate $3,000 per month. That’s way more passive income than adults usually have. Even if you don’t want to continue on with your blog, the current selling price would be $96,000.

Can you tell me what 18 year old has  $96,000 laying around? 

Ultimately, your goal is to get money and buy passive income. Any profits from any assets you  make could be funneled into purchasable assets like dividend stocks.

So let’s look into different passive income ideas for teenagers. Pick an idea, learn as much as possible, and make progress towards building an asset!

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Passive income ideas for teenagers under age 18

The best passive income ideas for teenagers include starting a YouTube channel, blogging, creating and selling digital products, and affiliate marketing. Use your income from these revenue streams to invest in dividend stocks or real estate crowdfunding.

As previously mentioned, the goal is to create an income stream and use that money to buy more money.


You can start a YouTube channel as early as age 13. However, in order to show ads on your YouTube channel, you must be 18 years or older.

Starting a YouTube channel is fairly simple. Within a matter of minutes, you could have your very first video posted online.

The first step you need to take is determining your niche. A niche is a set topic that you were going to talk about in your YouTube videos. For example, you could talk about personal finance, weight loss, Pokemon cards, or anything people have an interest in.

Next, you’ll want to start creating video content around your niche. Look at what some of the more popular YouTubers are doing in your space.

You don’t even need to go out and buy any fancy equipment. Most everyone has my phone these days and that is all that is really required to start a YouTube channel.

You need to build up as many subscribers as possible prior to turning 18. Once you are 18, you can sign up for a Google AdSense account and monetize with ads.


Blogging is very similar to owning a YouTube channel. The main difference is that with blogging you’re primarily writing as your way of communicating with an audience. In addition, you have to pay for hosting and domain when you start a blog.

Paying for hosting and domain isn’t really all that expensive compared to some other businesses you could start. However, you still need to be able to have around $200 per year if you’re going to start a blog.

Realistically, you might want to budget more per year if you want to include things like security plugins for your website.

However, blogging is a very powerful internet marketing tool. If done correctly, your blog could be at 100,000 page views per month in 2 years. Blogs should be able to make $1,000 for every 30000 page views. 

As a teenager, your primary goal should be determining how to grow website traffic. How can you write content that actually gets readers? Learn as much as you can about search engine optimization.

Building long-lasting website traffic takes a lot of time, effort, and energy. However, if you manage to rank on Google, that article will bring in long-lasting traffic without any additional effort on your part.

When you turn 18, you’ll be able to apply for different ad Networks. These ad Networks allow you to monetize your website with display ads.

Twitter Marketing 

Twitter marketing is all about building up followers around a specific niche. Stay focused on a specific topic and your followers will naturally gravitate towards amazing content. When you turn 18, you’ll be able to sell products that align with your audience’s interest.

For example, maybe you are extremely interested in weight loss. You can start a Twitter account which focuses on helping people lose weight.

Start trying to build your Twitter following by networking with others to get your first 1,000 followers. Afterwards, start producing amazing, motivational, and generally interesting content around weight loss.

Your content doesn’t have to be anything super special. For example, you just need to help people get motivated to get going on their weight loss journey.

So let’s assume you manage to build a Twitter following of 50,000 followers by the time you turn 18. Now, you need to scavenge the internet to find a weight loss product that offers a commission.

Let’s assume you found a $40 weight loss course that offers a 50% commission. For every sale, you earn $20.

This topic resonates with your audience. You send out a tweet with your affiliate link and 2% of your followers buy the product. In other words, you just made $20,000 by setting out one tweet.

Products are only one way of making money with the Twitter following. You can also send out sponsored tweets. In other words, companies will pay you to tweet about their product.

Create and sell digital products

Creating and selling digital products is another lucrative career that any teenager can do. I know most of you are probably thinking that creating and selling digital products is difficult. However, if you’ve ever done a book report for school then you are already well aware of what it takes.

Your first step is to figure out where you’re going to sell your digital products. For example, you could host your digital products on Gumroad or Teachable.

Wherever you host your product, it’s important that the hosting company offers an affiliate program. I’ll cover this in detail more, but you want people to be able to promote your product.

Next, you want to determine the problem you are going to solve. People are willing to pay you if you are able to solve a pain point in their life. For example, people might suffer from medical issues, wanting to make more money, or simply learn a new skill.

Compile all the information related to this product. read books, watch YouTube channels, listen to podcasts, and just learn about the topic.

Create your course outline and determine if you’re going to sell it via video, ebook, or some other digital memes. You want to create the most helpful resource available online and upload it to your digital product host.

Next, start out reaching to as many bloggers as possible. Make sure the blogger’s niche is relevant to your product. Ask if they would be willing to promote your product for a generous affiliate commission. 

With enough outreach, you’ll have an army of affiliate marketers promoting your product. You have to do nothing else to generate sales because others are getting your sales for you. 

Affiliate marketing

You can also choose to be an affiliate marketer for other people’s products. Track down products that are high quality and fit within the nice you were wanting to support. Then, find a way to promote those products and earn a commission. 

You can add your affiliate link to your blog, YouTube channel, Twitter accounts, and so many more places.

Dividend stock investing

Dividend stock investing is a good way to invest the money you earn so that your money earns you more money. I like dividend stocks because they pay you simply for owning them.

You are first going to need a brokerage account, like Robinhood. A brokerage account is going to let you purchase the stocks. However, if you are under 18 then you may need your parents to help you set up a custodial account.

Dividend stock investing is all about finding quality companies to invest your money in. You want to find good companies that pay a good dividend.

For example, you could buy a share of AT&T for $30 and it pays a 7% dividend yield. For every $1,000 you invest in AT&T, you would earn $70 per year in passive income. 

Real estate crowdfunding

Real estate crowdfunding is similar to dividend stock Investing. However, real estate crowdfunding deals with specific companies who focus on purchasing real estate assets.

Companies like Fundrise allow you to invest your money into physical real estate. Keep in mind, real estate investments are less liquid than just purchasing a dividend stock. However, you can invest in a dividend portfolio with Fundrise so that you get regular cash payments.

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Summary: Passive income for teens

As you can see, there are many options to earn passive income as a teenager. The sooner you get started on building an asset the easier it will be for you to start building wealth. In most cases, you can start building an asset prior to turning 18 and then monetize the asset when you turn 18.

Some of the best passive income sources include YouTube, blogging, Twitter marketing, digital courses, affiliate marketing, dividend and real estate investing.

Your goal should be to build an asset and earn an income. Take your income from your assets and invest in more assets that pay an income. Eventually, you should build a cash-paying snowball that can support your lifestyle.