Passive Income for Teens: 57 Smart Ways to Earn While In School

Hey there! I’m Mahad, and I’ve been hustling since high school. Back then, I was just trying to save up for the latest tech gadgets. Now, I’ve turned those early side gigs into a full-fledged business. Trust me, if I could do it, so can you.

I know what you’re thinking – “I’m too busy with school and extracurriculars to make money.” But here’s the thing: passive income is all about working smarter, not harder. It’s about setting up systems that keep earning even when you’re hitting the books or hanging out with friends.

In this post, I’m sharing 57 passive income ideas that actually work for teens. These aren’t your run-of-the-mill suggestions – I’ve tried many of these myself, and I’ve seen other teens succeed with them too. Whether you’re saving for college, want to buy something cool, or just want to start building your empire early, there’s something here for you.

So let’s dive into these smart ways to earn while you’re still in school. No fluff, no BS – just real strategies to help you start building wealth now.

Why Teens Should Consider Passive Income

Before we get into the specific ideas, let’s talk about why passive income is such a game-changer for teens.

First off, it teaches you valuable entrepreneurial skills. You’ll learn how to spot opportunities, solve problems, and maybe even create something from scratch. These are skills that’ll serve you well no matter what career path you choose.

Secondly, it gives you a head start on financial independence. While your peers are scraping by on allowance or minimum wage jobs, you could be building multiple income streams. This financial cushion can give you more options when it comes to choosing a college or pursuing your passions.

Lastly, passive income can give you a taste of what’s possible beyond the traditional 9-to-5 grind. As I discuss in my article on escaping the rat race, there are many ways to build wealth outside of conventional career paths. Starting early gives you a huge advantage.

Now, let’s get into the nitty-gritty of how you can start earning passive income as a teen.

Online Passive Income Ideas for Tech-Savvy Teens

If you’re comfortable with technology (and let’s face it, most teens are), there’s a whole world of online opportunities waiting for you. Here are some ideas to get you started:

1. Start a YouTube Channel

Creating content on YouTube can be a great way to earn passive income. Once you’ve uploaded a video, it can continue to generate ad revenue for years. The key is to find a niche you’re passionate about and create consistent, high-quality content.

For example, you could start a channel reviewing tech gadgets, sharing study tips, or teaching a skill you’ve mastered. As your channel grows, you can monetize through ads, sponsorships, and affiliate marketing.

2. Create and Sell Digital Products

Digital products are a fantastic passive income stream because you create them once and can sell them indefinitely. This could include e-books, printables, digital art, or even online courses.

For instance, if you’re a whiz at math, you could create and sell a study guide for the SAT math section. Or if you’re artistic, you could design and sell digital wallpapers or printable planners.

3. Start a Blog

Blogging might seem old school, but it’s still a viable way to earn passive income. Choose a topic you’re knowledgeable and passionate about, and start sharing your insights. As your blog grows, you can monetize through ads, affiliate marketing, and sponsored posts.

Remember, consistency is key. Regular posting and engaging with your audience will help your blog grow faster. Check out my guide on how to use ChatGPT for content ideas to keep your blog fresh and engaging.

4. Develop a Mobile App

If you have coding skills (or are willing to learn), creating a mobile app can be a great source of passive income. You could develop a game, a productivity tool, or an app that solves a specific problem.

Once your app is live on the app store, you can earn money through in-app purchases, ads, or a one-time purchase fee. The best part? Your app keeps earning even while you sleep.

5. Sell Stock Photos or Videos

If you have a good eye for photography or videography, consider selling your work on stock photo websites. Sites like Shutterstock, Adobe Stock, and iStock allow you to upload your photos or videos and earn a commission every time someone downloads them.

This is truly passive income – you do the work once by taking and uploading the photos, and then you can potentially earn from them for years to come.

6. Create and Sell Print-on-Demand Products

Print-on-demand services allow you to design products like t-shirts, mugs, and phone cases without holding any inventory. You create the designs, and the print-on-demand company handles the printing, shipping, and customer service.

Sites like Redbubble, Society6, and Printful make it easy to get started. All you need is some creative ideas and basic design skills. For inspiration, check out my article on new AI art as a side hustle.

7. Become an Affiliate Marketer

Affiliate marketing involves promoting other people’s products and earning a commission on each sale. As a teen, you could become an affiliate for products you already use and love.

For example, if you’re into gaming, you could review gaming gear on YouTube or your blog and include affiliate links. When your audience buys through your links, you earn a commission.

Creative Passive Income Ideas for Artistic Teens

If you’ve got a creative streak, there are plenty of ways to turn your talents into passive income. Here are some ideas:

8. Sell Your Art on Print-on-Demand Sites

Similar to the print-on-demand idea mentioned earlier, but focused specifically on your artwork. Sites like Society6 and Redbubble allow you to upload your designs and have them printed on various products. You earn a commission on each sale, without having to handle any inventory or shipping.

9. License Your Music

If you’re musically inclined, you could create and license your music for use in videos, commercials, or as background music. Sites like AudioJungle allow you to upload your tracks and earn royalties when they’re used.

10. Write and Sell an E-book

Have a story to tell or knowledge to share? Write an e-book and sell it on platforms like Amazon Kindle Direct Publishing. Once your book is live, it can continue to generate sales for years to come.

11. Create and Sell Digital Art

Digital art is in high demand for everything from website design to social media graphics. Create digital artwork and sell it on sites like Creative Market or Etsy. This could include illustrations, icons, patterns, or even 3D models.

12. Design and Sell Fonts

If you have a knack for typography, consider designing and selling fonts. Websites like MyFonts and FontBundles allow you to upload and sell your font creations.

Local Passive Income Ideas for Community-Oriented Teens

Not all passive income has to be online. Here are some ideas for earning in your local community:

13. Rent Out Your Stuff

If you have items that you don’t use all the time, consider renting them out. This could include things like sports equipment, musical instruments, or even your bike. Apps like Fat Llama make it easy to list your items for rent.

14. Start a Vending Machine Business

With some initial investment, you could start a vending machine business. Once you’ve placed your machines in good locations, they can generate income with minimal ongoing effort.

15. Offer Your Parking Space for Rent

If you live in an area where parking is scarce, and you have a spare parking space, you could rent it out. Apps like JustPark make this process easy.

16. Create and Sell Local Tour Guides

If you know your local area well, create a digital guide for tourists and sell it online. This could include insider tips on the best restaurants, hidden gems, and must-see attractions.

17. Rent Out Storage Space

If you have extra space in your garage or basement, consider renting it out for storage. Websites like Neighbor.com connect people looking for storage with those who have space to offer.

Entrepreneurial Passive Income Ideas for Business-Minded Teens

If you’ve got an entrepreneurial spirit, these ideas might appeal to you:

18. Start a Dropshipping Business

Dropshipping allows you to sell products without holding any inventory. When a customer places an order, the product is shipped directly from the supplier to the customer. Platforms like Shopify make it easy to set up a dropshipping store.

19. Create a Subscription Box Service

Curate a monthly box of products around a specific theme or interest. Once you’ve set up the logistics, this can become a relatively passive income stream.

20. Develop and Sell an Online Course

If you’re knowledgeable about a particular subject, consider creating an online course. Platforms like Udemy and Teachable allow you to upload your course and earn money each time someone enrolls.

21. Start a Print-on-Demand T-Shirt Business

Design t-shirts and sell them through print-on-demand services. You handle the marketing, while the print-on-demand company takes care of production and shipping.

22. Create and Sell Printables

Design printables like planners, worksheets, or wall art and sell them on platforms like Etsy. Once created, these can be sold indefinitely with no additional work.

Tech-Based Passive Income Ideas for Coding-Savvy Teens

If you’re into coding or willing to learn, these ideas could be perfect for you:

23. Develop a WordPress Theme or Plugin

Create a WordPress theme or plugin and sell it on marketplaces like ThemeForest or CodeCanyon. Once developed, these can continue to generate sales with minimal ongoing work.

24. Create a SaaS (Software as a Service) Product

Develop a web-based software solution that solves a specific problem. Users pay a recurring subscription fee to use your software.

25. Build and Monetize a Web App

Create a web application that provides value to users. Monetize it through ads, premium features, or a subscription model.

26. Develop Alexa Skills or Google Home Actions

Create voice-activated apps for smart home devices. You can earn money when users interact with your skills or actions.

27. Create and Sell Website Templates

Design website templates for platforms like WordPress or Shopify and sell them on marketplaces like ThemeForest.

Investment-Based Passive Income Ideas for Financially-Savvy Teens

While some of these might require parental involvement due to age restrictions, they’re worth considering for long-term passive income:

28. Invest in Dividend-Paying Stocks

With parental guidance, invest in stocks that pay regular dividends. Over time, these can provide a steady stream of passive income.

29. Invest in Real Estate Investment Trusts (REITs)

REITs allow you to invest in real estate without actually buying property. They often pay high dividends, making them a good source of passive income.

30. Peer-to-Peer Lending

Platforms like Prosper and LendingClub allow you to lend money to individuals and earn interest. Note that this often requires you to be 18 or older.

31. High-Yield Savings Accounts

While not the most exciting option, putting money into a high-yield savings account can provide a small but steady stream of passive income through interest.

32. Invest in Index Funds

Index funds are a low-cost way to invest in a broad market index. They can provide steady growth and sometimes dividends.

Content Creation Passive Income Ideas for Creative Teens

If you enjoy creating content, these ideas could be perfect for you:

33. Start a Podcast

Create a podcast on a topic you’re passionate about. Monetize through sponsorships, ads, or listener support on platforms like Patreon. Check out my guide on how to start a podcast cheaply for tips on getting started.

34. Create and Sell Stock Music

Compose music and sell it on stock music sites like AudioJungle or PremiumBeat. Your tracks could be used in videos, commercials, or as background music.

35. Write and Sell PLR (Private Label Rights) Content

Create content that other people can buy and use as their own. This could include articles, e-books, or social media posts.

36. Start a Niche Website

Create a website focused on a specific niche topic. Monetize through ads, affiliate marketing, or by selling your own products.

37. Create and Sell Templates

Design templates for things like resumes, social media posts, or presentations. Sell them on platforms like Etsy or Creative Market.

AI-Powered Passive Income Ideas for Tech-Forward Teens

Artificial Intelligence is opening up new opportunities for passive income. Here are some ideas:

38. Create AI-Generated Art

Use AI tools to create unique artwork and sell it as prints or digital downloads. For more on this, check out my article on new AI art as a side hustle.

39. Develop AI-Powered Chatbots

Create chatbots for businesses to use on their websites or social media platforms. Once set up, these can run with minimal intervention.

40. Use AI for Content Creation

Leverage AI writing tools to help create content for your blog, social media, or even e-books. This can significantly speed up your content creation process.

41. AI-Assisted Stock Trading

Use AI-powered tools to help make stock trading decisions. Always do this under adult supervision and with caution.

42. Create and Sell AI-Generated Music

Use AI tools to compose music and sell it on stock music sites or for use in videos and games.

Educational Passive Income Ideas for Knowledge-Sharing Teens

If you excel in certain subjects, why not turn that knowledge into passive income?

43. Create and Sell Study Guides

Develop comprehensive study guides for subjects you excel in. Sell them on platforms like Teachers Pay Teachers or directly to your peers.

44. Tutor Online

While not entirely passive, you can create recorded tutoring sessions on platforms like Udemy or Skillshare, which can then be sold repeatedly.

45. Develop Educational Apps

Create apps that help students learn or study more effectively. This could be anything from flashcard apps to full-fledged course materials.

46. Write Educational E-books

Write e-books on subjects you’re knowledgeable about. These could be study guides, how-to manuals, or explanations of complex topics.

47. Create and Sell Lesson Plans

If you have a knack for teaching, create and sell lesson plans for teachers or homeschooling parents.

Social Media-Based Passive Income Ideas for Influencer-Minded Teens

If you’re active on social media, these ideas could help you monetize your online presence:

48. Become an Instagram Influencer

Build a following on Instagram and monetize through sponsored posts, affiliate marketing, or by selling your own products.

49. Create and Monetize a TikTok Account

Develop a strong presence on TikTok and earn through the platform’s creator fund, brand partnerships, or by promoting your own products or services.

50. Start a YouTube Channel

Create engaging video content and monetize through ads, sponsorships, and affiliate marketing. For ideas on how to automate this process, check out my guide on AI YouTube automation.

51. Become a Pinterest Influencer

Create valuable pins and boards on Pinterest. Monetize through affiliate marketing or by driving traffic to your own products or services.

52. Develop a Following on Twitter

Build a strong Twitter following by sharing valuable content. Monetize through sponsored tweets or by promoting your own products or services.

Miscellaneous Passive Income Ideas for Innovative Teens

Here are a few more ideas that don’t fit neatly into the above categories:

53. Rent Out Your Textbooks

Instead of selling your textbooks at the end of the semester, rent them out to other students.

54. Sell Your Class Notes

If you take great notes, consider selling them to other students. Platforms like Stuvia allow you to upload and sell your notes.

55. Create and Sell Ringtones

If you’re musically inclined, create unique ringtones and sell them on platforms like Zedge or directly through app stores.

Mahad Kazmi
Mahad Kazmi

College was tough. As a Mechatronics Engineering student, the coursework kept me busy around the clock. To make ends meet, I tried different side jobs between semesters. That's when I discovered selling online could be lucrative.

At first it was just little things - old textbooks, unused gear. Anything I could list for a few extra dollars. Before long, I realized I had a knack for finding products people wanted. Writing listings came naturally too. Soon those side sales grew into something serious.

It was fun playing around with marketing strategies in my free time. I always had curious mind so learning new skills came easy. While classmates stressed over exams, I looked forward to testing out emerging tools. That's about the time chatterbots like Claude were taking off.

I remember the first conversation I had with an AI. It blew my mind how quickly the technology was advancing from simple scripts. I started using dialogue agents to enhance my sales process. Customers loved how smooth it made purchasing. More sales meant more income to support my academics.

Fast forward a few years and I had the engineering degree but my heart still called to marketing. I took a "real" job out of practicality but the entrepreneurial itch never left. Then one day, I discovered GPT-3 and it changed everything. The possibilities this new language model created inspired me like nothing before.

Suddenly I had an idea. Why not fuse my engineering expertise with my passion for selling? If I could develop applications using AI like GPT-3 to solve problems in unique ways, maybe I had an opportunity others didn't see. And thus, a new journey began in my spare time outside that 9-5 job.

I don't know where this path may lead...but I'm excited to find out!Today’s date is June 20th, 2024. There will be failures but every mistake will teach me. I'm curious to see how far we’ve come together in a year from now!

Articles: 71