Money & Economics · free reference

Part 3: How people earn money: jobs, paychecks and taxes

How people earn, Careers and pay, Rules for young workers and Taxes and what they pay for. Every fact lists its source, and you can share a link to any topic.

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How people earn

#how-people-earnLevels:6–8TeensLast checked Oct 27, 2026

In short: People earn money by working. Employers must pay at least the federal minimum wage of $7.25 an hour, and many states have their own minimum wage laws.[1]

Facts

  • The federal minimum wage is $7.25 an hour, and it has been since July 24, 2009.[1]6–8
  • Many states have their own minimum wage laws. Where a state law protects workers more, employers must follow both laws.[1]6–8
  • In the third quarter of 2026, the middle (median) weekly pay for full-time workers in the United States was $1,232.[2]6–8
Go deeper: for teens and grown-ups (2)
  • Women’s median weekly pay was $1,127, which is 83.4 percent of men’s median of $1,352.[2]Teens
  • The country had 122.2 million full-time wage and salary workers.[2]Teens

Key words in three languages

EnglishSpanishPortuguese
minimum wage[1]salario mínimo[3]not sourced yet
earnings[2]ingresos[4]not sourced yet

Each word cites a page that uses it.

Practice this

Each word cites a page that uses it.

Sources (4)
  1. U.S. Department of Labor, Wage and Hour Division · Minimum Wage · dol.gov/agencies/whd/minimum-wage (checked Oct 27, 2026)
  2. U.S. Bureau of Labor Statistics · Usual Weekly Earnings of Wage and Salary Workers, Third Quarter 2026 · bls.gov/news.release/archives/wkyeng_10212026.htm (page updated Oct 21, 2026; checked Oct 27, 2026)
  3. USAGov en Español · Salario mínimo en Estados Unidos · usa.gov/es/salario-minimo (checked Oct 27, 2026)
  4. Consumer Financial Protection Bureau · Glossary of English-Spanish financial terms (Spanish style guide and glossary) · files.consumerfinance.gov/f/documents/cfpb_adult-fin-ed_spanish-style-guide-glossary.pdf (checked Oct 27, 2026)

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Careers and pay

#careers-and-payLevels:6–8TeensLast checked Oct 27, 2026

In short: Different jobs pay different amounts. On average, workers who finish more school earn more and are out of work less often.[1][2]

Facts

  • In general, the more school a worker has finished, the more they earn and the less likely they are to be out of work.[1]6–8
  • In 2024, full-time workers aged 25 and over with a high school diploma had median weekly earnings of $930.[1]6–8
  • Workers with a bachelor’s degree had median weekly earnings of $1,543, and workers with a doctoral degree $2,278.[1]6–8
  • The government’s Occupational Outlook Handbook shows typical pay for almost every job it describes.[2]6–8
  • It also tells you the schooling most workers need to start in each job.[2]6–8
Go deeper: for teens and grown-ups (3)
  • Workers without a high school diploma had the highest unemployment rate, 6.2 percent, and the lowest median weekly earnings, $738.[1]Teens
  • Workers with graduate degrees had the lowest unemployment rates and the highest earnings.[1]Teens
  • It lists how many openings each job is expected to have each year, on average, over the decade.[2]Teens

Key words in three languages

EnglishSpanishPortuguese
unemployment rate[1]tasa de desempleo[3]taxa de desemprego[4]
earnings[5]ingresos[6]not sourced yet

Each word cites a page that uses it.

Practice this

Members-only lessons are marked. The practice pages by grade and The Business You Build check are free.

Sources (6)
  1. U.S. Bureau of Labor Statistics, Career Outlook · Education pays, 2024 · bls.gov/careeroutlook/2025/data-on-display/education-pays.htm (page updated May 2025; checked Oct 27, 2026)
  2. U.S. Bureau of Labor Statistics, Occupational Outlook Handbook · Occupational Information Included in the OOH · bls.gov/ooh/about/occupational-information-included-in-the-ooh.htm (page updated Aug 27, 2026; checked Oct 27, 2026)
  3. Wikipedia en español · Desempleo · es.wikipedia.org/wiki/Desempleo (checked Oct 27, 2026)
  4. Wikipédia em português · Desemprego · pt.wikipedia.org/wiki/Desemprego (checked Oct 27, 2026)
  5. U.S. Bureau of Labor Statistics · Usual Weekly Earnings of Wage and Salary Workers, Third Quarter 2026 · bls.gov/news.release/archives/wkyeng_10212026.htm (page updated Oct 21, 2026; checked Oct 27, 2026)
  6. Consumer Financial Protection Bureau · Glossary of English-Spanish financial terms (Spanish style guide and glossary) · files.consumerfinance.gov/f/documents/cfpb_adult-fin-ed_spanish-style-guide-glossary.pdf (checked Oct 27, 2026)

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Rules for young workers

#young-workers-rulesLevels:6–8TeensLast checked Oct 27, 2026

In short: Federal law sets rules for young workers: most jobs start at age 14, and 14- and 15-year-olds can work only limited hours, especially on school days.[1]

Facts

  • Under federal law, most jobs outside farming start at age 14.[1]6–8
  • Workers aged 14 and 15 can work at most 3 hours on a school day and 18 hours in a school week.[1]6–8
  • On a day with no school they can work up to 8 hours, and up to 40 hours in a week with no school.[1]6–8
  • Workers aged 14 and 15 must work between 7 a.m. and 7 p.m. From June 1 through Labor Day, they can work until 9 p.m.[1]6–8
  • July is usually the busiest month of the year for young people’s summer jobs.[2]6–8
  • A quarter of working young people (25 percent, or 5.3 million) worked in leisure and hospitality, such as restaurants and hotels.[2]6–8
Go deeper: for teens and grown-ups (4)
  • Federal law does not limit the hours or times of day for workers aged 16 and older.[1]Teens
  • Many states have their own rules for young workers. When both apply, the stricter rule must be followed.[1]Teens
  • In July 2026, 21.3 million young people aged 16 to 24 had jobs.[2]Teens
  • In July 2026, 9.1 percent of young people who were looking for work could not find a job, down from 10.8 percent a year before.[2]Teens

Key words in three languages

EnglishSpanishPortuguese
employment[1]empleo[3]emprego[4]
minimum wage[5]salario mínimo[6]not sourced yet

Each word cites a page that uses it.

Practice this

Members-only lessons are marked. The practice pages by grade and The Business You Build check are free.

Sources (6)
  1. U.S. Department of Labor (elaws FLSA Advisor) · When and how many hours can youth work? · webapps.dol.gov/elaws/faq/esa/flsa/028.htm (checked Oct 27, 2026)
  2. U.S. Bureau of Labor Statistics · Employment and Unemployment Among Youth — Summer 2026 · bls.gov/news.release/archives/youth_08202026.htm (page updated Aug 20, 2026; checked Oct 27, 2026)
  3. Wikipedia en español · Desempleo · es.wikipedia.org/wiki/Desempleo (checked Oct 27, 2026)
  4. Wikipédia em português · Desemprego · pt.wikipedia.org/wiki/Desemprego (checked Oct 27, 2026)
  5. U.S. Department of Labor, Wage and Hour Division · Minimum Wage · dol.gov/agencies/whd/minimum-wage (checked Oct 27, 2026)
  6. USAGov en Español · Salario mínimo en Estados Unidos · usa.gov/es/salario-minimo (checked Oct 27, 2026)

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Taxes and what they pay for

#taxes-and-public-servicesLevels:3–56–8TeensLast checked Oct 27, 2026

In short: When you work, taxes come out of your paycheck, including Social Security and Medicare taxes. The Social Security tax pays for Social Security benefits.[1][2]

Facts

  • The Social Security tax pays for benefits from the Social Security system.[1]3–5
  • At a new job, workers fill out a form so the employer can work out how much federal income tax to take out of each paycheck.[1]6–8
  • The form workers fill out at a new job is called Form W-4.[3]6–8
  • Social Security tax is 6.2 percent of pay for the worker and another 6.2 percent paid by the employer, 12.4 percent in all.[2]6–8
  • Medicare tax is 1.45 percent for the worker and 1.45 percent for the employer, 2.9 percent in all.[2]6–8
Go deeper: for teens and grown-ups (4)
  • Social Security tax applies only up to a yearly limit. For pay earned in 2026, the limit is $184,500.[2]Teens
  • Teens who babysit, mow lawns or do gig work are usually self-employed, and money from self-employment is taxable.[1]Teens
  • In fiscal year 2025, the federal government collected $5.2 trillion.[4]Teens
  • Individual income taxes were the biggest source, $2,656 billion, followed by payroll taxes at $1,748 billion.[4]Teens

Key words in three languages

EnglishSpanishPortuguese
income tax[1]impuestos sobre la renta[5]imposto de renda[6]

Each word cites a page that uses it.

Practice this

Members-only lessons are marked. The practice pages by grade and The Business You Build check are free.

Sources (6)
  1. Internal Revenue Service · Tax tips for students working summer jobs (Tax Tip 2021-108, marked historical by the IRS) · irs.gov/newsroom/tax-tips-for-students-working-summer-jobs (page updated Jul 27, 2021; checked Oct 27, 2026)
  2. Internal Revenue Service · Topic no. 751, Social Security and Medicare withholding rates · irs.gov/taxtopics/tc751 (page updated Sep 24, 2026; checked Oct 27, 2026)
  3. Internal Revenue Service · Tips for teenage taxpayers starting a summer job (Tax Tip 2018-82, marked historical by the IRS) · irs.gov/node/58331 (page updated May 29, 2018; checked Oct 27, 2026)
  4. Congressional Budget Office · Monthly Budget Review: Summary for Fiscal Year 2025 · cbo.gov/system/files/2025-11/61307-MBR-FY25-final.pdf (page updated Nov 10, 2025; checked Oct 27, 2026)
  5. Consumer Financial Protection Bureau · Glossary of English-Spanish financial terms (Spanish style guide and glossary) · files.consumerfinance.gov/f/documents/cfpb_adult-fin-ed_spanish-style-guide-glossary.pdf (checked Oct 27, 2026)
  6. Wikipédia em português · Imposto de renda · pt.wikipedia.org/wiki/Imposto_de_renda (checked Oct 27, 2026)

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Questions parents ask

At what age can a kid get a job?

Under federal law, most jobs outside farming start at age 14.[1] Workers aged 14 and 15 can work at most 3 hours on a school day and 18 hours in a school week.[1] Federal law does not limit the hours or times of day for workers aged 16 and older.[1] Many states have their own rules for young workers. When both apply, the stricter rule must be followed.[1]

Read more: Rules for young workers

Why do taxes come out of a paycheck?

At a new job, workers fill out a form so the employer can work out how much federal income tax to take out of each paycheck.[2] Social Security tax is 6.2 percent of pay for the worker and another 6.2 percent paid by the employer, 12.4 percent in all.[3] Medicare tax is 1.45 percent for the worker and 1.45 percent for the employer, 2.9 percent in all.[3] The Social Security tax pays for benefits from the Social Security system.[2]

Read more: Taxes and what they pay for

Do teens pay taxes on babysitting or lawn mowing money?

Teens who babysit, mow lawns or do gig work are usually self-employed, and money from self-employment is taxable.[2]

Read more: Taxes and what they pay for

Sources for these answers (3)
  1. U.S. Department of Labor (elaws FLSA Advisor) · When and how many hours can youth work? · webapps.dol.gov/elaws/faq/esa/flsa/028.htm (checked Oct 27, 2026)
  2. Internal Revenue Service · Tax tips for students working summer jobs (Tax Tip 2021-108, marked historical by the IRS) · irs.gov/newsroom/tax-tips-for-students-working-summer-jobs (page updated Jul 27, 2021; checked Oct 27, 2026)
  3. Internal Revenue Service · Topic no. 751, Social Security and Medicare withholding rates · irs.gov/taxtopics/tc751 (page updated Sep 24, 2026; checked Oct 27, 2026)