Teenagers in the US spent an average of 4.8 hours on social media platforms every day in 2023, according to Gallup. It’s not just social media that keeps them engaged either — 83% of US teens have access to a gaming console at home, as well as 90% with a desktop/laptop computer or 95% with smartphone access.
Though rather than time wasted, we found evidence that teens are capitalizing on their digital presence and turning screen time into serious income. There are even signs of earnings below the legal working age between ages 12-15 through online activity, such as gaming or socials, highlighting a whole digital economy that US teens are at the forefront of.
To explore the scale of teen earnings through digital channels in the US, we have gathered survey data from 1,655 US teens aged between 12-18 years old. The survey asked questions about income earnings through online channels — including gaming, social media, and clothing reseller platforms — the scale of activity online, and the most common sources of digital income for US teens.
Key findings:
- More teens in the US are earning money through digital channels than there are in employment in 2024, according to the latest figures
- 42% (two in five) of US teens (under 18) are actively earning money online through their digital channels
- On average, teens earn $718 each year through online activity
- Teens in the youngest age bracket below legal working age, at 12-15 years old, earn $561 on average every year online
- Approximately one student in every high school — or one in every 625 pupils (0.16%) — are ‘ultra-high earning’ teens, generating an income of $10,000 or more per year through their digital channels
US Teens are Already Earning Hundreds of Dollars Online
Our research finds two in five (42%) US teens under the age of 18 are actively earning money online through their digital channels. Over the past year, teens have earned an average of $718 through online activity.
More teens in the US are earning money through digital channels than are in employment in 2024. The percentage of 16-to-19-year-olds who were in employment or were looking for a job in May 2024 was at a high of 38% in May, according to a PBS report.
For teens in the youngest age bracket, below legal working age at 12-15 years old, the average teen earns $561 each year online. Student teens above the legal working age between 16-18 years old earn $909 in an average year.
The data shows that there are enterprising teens going further than this. Approximately one student in every high school — or one in every 625 pupils (0.16%) — are ‘ultra-high earning’ teens, generating an income of $10,000 or more per year through their digital channels. Comparing this figure to the population, there are over 40,000 US teens earning tens of thousands of dollars through their online channels every year.
What is the prevalence of teen digital earning across social groups?
Earning money online is more common than not across teen friendship groups. We can see this by looking at the number of teen respondents who are in the social circle of (either ‘friends of’ or ‘knows of’) someone who earns income online.
Thanks to the widespread online connectivity and ecommerce infrastructure, 53% of teens are in the social circle of online earners. This increases to 57% in more densely populated urban areas.
Top US Cities where teens are acquainted with online earners
Where are US Teens Earning the Most Online?
We’re also able to look at the urban hubs where teens are generating the most income through digital channels on average.
With its proximity to Silicon Valley, San Jose is perhaps the most natural location for the highest income for teen digital earners. With average earnings of $1,705 per year, teens living in the city earn 2.4 times higher online than the national average.
The feature of Anchorage, Alaska, in second place for both the average digital earnings per year and for the prevalence of teen digital earning activity highlights teens harnessing the power of digital to broaden past the prominent digital economic hubs. Teens in the city earn 2.2 times higher than the national average for online earnings.
The average digital earnings of a teen per year
What are the Main Sources of Income for the ‘Digital Youth Economy’?
Methods of digital earnings for US teens broadly fell into three categories; clothing resale & ecommerce, social media, or gaming & live streaming.
Clothing resale & ecommerce activity:
On average, US teens earn the most through online clothing, footwear, or accessory sales. The average earning is a little over one hundred dollars annually. However, over four hundred thousand (439,310)4 US teens are high earners in this category, with an income ten times higher than the average, earning a minimum of $1,000 a year through selling clothes online.
- One in six teens (15%) are selling clothes, footwear, or apparel accessories online
Social media:
One in three students under the age of 18 have been approached by a brand to sponsor a product through their digital channels, or know someone who has. Over one in five (23%) US teens under legal working age have been approached by brands for sponsorship opportunities, or know someone who has.
- 8% have earned through product reviews
- 7% have earned through brand sponsorship through social media accounts
- 6% earn through viewer earning from social media platforms
While the average earnings of $94 are lower for teens engaged in earning through brand sponsorship on social media, in comparison to clothing resale and ecommerce activity, there’s greater potential to earn more. Nearly half a million (486,101) US teens are high earning in this category, earning five times higher than the average with $1,000 or more in brand-sponsored social media earnings.
Gaming & live streaming:
The average US teen earns $81 each year through video game tournament prizes. Over 450 thousand (454,907) teens in the US are high earners in this category, earning over ten times above average with $1,000 or more through video game tournament prizes.
- One in ten (9%) of US Gen Z teens have earned money through streaming video games
- 10% have earned in-game currency on video games
- 9% have earned money through video game tournament prizes
The average teen digital earnings by income activity
What’s Next for the Digitally Enterprising Teens in the US?
There’s evidence that digital native teens could be reconsidering traditional career aspirations, moving towards building their careers online. Many teen student respondents consider their online earning methods as realistic career choices.
When asked, the following methods of making money online were considered most realistic:
There is a growing digital economy among US teens. Operating online has given students a platform to leapfrog the traditional apprenticeship roles to become their own boss, and in channels that are dominated by fellow teens. The findings we’ve explored highlight how their innovative use of technology is reshaping the landscape of youth employment, and offering a glimpse into the future of digital entrepreneurship.
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Methodology:
- The research gathered insights from 1,655 respondents across the USA aged between 12-18 years old
- Respondents were asked whether they earned money through online activity over the previous 6 months and, if any, the amount earned
- Activity encompassed in online activity include social media activity & personal branding, gaming/consoles, clothing resale, live streaming
- Data collected 08.07.2024 - 12.07.2024
