site maintenance: This is going to take a while. Excuse the mess while we update the website.
You are here: /commentary/what-should-high-school-income-look-like-in-2025/2025-02-21
In South Dakota, high school jobs for a 15/16 year old are rated at $15/$16 per hour on average. They are normally limited to working 12 hours per week when in school so this is almost $200 per week minus taxes at 22%. They are encouraged to save and they buy most of their own stuff, their main goal is a car which costs $5k-$6k, $12k-$15k, or $18k+.
Expenses are school clothes each semester, shoes, cafeteria food (i.e. fast food before or after school), and video games. Parents usually still help out with things like winter formal, rides, and some expenses they didn't plan for, but not often.
They expect to make $20 to $25 per hour after graduation, pay about $800 rent or less, and have money for cool vacations once a year or more often if available. Its considered moderate to modest income of $40k to $50k per year for entry level work that subsconciously involves statistical accounting, team based time management, and group work to maintain their living environments, and provide amenities for the inhabitants of the town.
While, $2k to $3k per month is $15 to $17.35 per hour full time, 40 hours per week for the rest of their lives, most of them wont do that. They are making that now as part time wages and an extra $1.35 probably wont be enough for an apartment, car and money to go out, even if full time.
At $40 to $50k per year, they will probably take all their time off, plus holidays that their organizations aren't open, they'll schedule their vacation, and might even miss a few extra days, hoping they still get paid. Future work schedules are approximated at 60 days off total and the yearly salary being fully budgeted for expenses, anything left over going into an FDIC insured savings account instead of investments which are seen as a form of income that takes time and effort to make sense for people to use their money like that.
Independent work and its history
A high school student started as an independent worker can often start making that same $15 to $16 dollars and the taxes are equal and proportionate so w2 workers pay the same tax but 1099 workers do their own accounting, budgeting, tax payments, and office work. At least to start off, they probably cant afford an assistant right away unless their parents help them out.
They can make much more than that. Sample high school jobs, independent worker:
$15 per car wash - 2 car washes per hour.
4 hours worth of work per day, 3 time per week. 4 PM to 8PM, homework done at school.
$25 per car detailing service. Takes 1 hour. 3 per day after school. 8 AM to 11 AM on every other Saturday or per appointment with phone call.
$50 lawn mowing and lawn edging service. Up to a certain size. 2 per day after school 3 on Saturdays. Arrives in own truck with rake, lawn bags, lawn mower and edger.
Because they are learning, they are not required to provide SSN to their customers, they do give them a receipt or monthly statement, and they keep copies of each receipt. Then, they add all the receipts up, do the standard deduction that is still allowed, some skip it already; and write a check for 22% of their yearly income on a 1040 form. The check or ach payment for the IRS is usually sitting in their checking account at the end of the year. They can also risk a scolding from mom and dad if they don't have the money and need some assistance or short term loan to pay taxes.
Their only tax requirement:
https://www.irs.gov/forms-pubs/about-form-1040
Line 1h on 1040
Line 12, if desired
Line 16
Line 23
Line 24
Line 36 is often the entire amount, and likely a scolding from mom and dad if that number is too big.
It takes them about an hour or two to do this on their own and that is the context of future employment. They don't need the 1099 form unless they have workers helping them out, most of them don't. They are required to get an attorney or legal group to document the PII exchange.
https://www.irs.gov/forms-pubs/about-form-1099-misc
This is simplified accounting and plain English which has been a work in progress for over 15 years having major milestones in 2012/2016 2014/2016 and then seeing a pause due to the recession.
Currently, they are studying requirements for running large beverage or food production companies which will come later in life unless they decide to switch independent work for a regional job in corporate. Some of the W2 workers will also want to work their way up with training, school, references, and recommendations. So its something to consider along with college, independent worker groups, distributed teams, certifications and credentials once school is over. A lot of them can test out of the GED at 15 or 16 but want to remain in high school until 18 or close to 18, especially if they can do college remotely from school or home.
South Dakota allows its residents to start working at 14 years old and they can get their driving permit at that age as well. Most are gearing towards 15/16 for work and driving but like that they can legally test things out and do practice runs as soon as they get to high school.
Most work place concepts, and skills for independent living are currently rated at a 6th to 10th grade education but many will still go to college and finish high school. It provides a socialization atmosphere and trivial problems to solve while waiting to be, officially an adult.