TL;DR
- The Reality Check: Most "influencer" dreams end in $0.00. Both platforms require a massive audience before a single cent drops.
- YouTube is the "Safe" Bet: YouTube AdSense is the gold standard for long-term revenue, but the barrier to entry is high (1,000 subscribers + 4,000 watch hours).
- TikTok is the Lottery: TikTok is easier to go viral on, but the "Creator Rewards Program" only pays for videos over one minute and requires 10,000 followers.
- Age Matters: Legally, your kid can’t touch this money until they are 18. Everything must be in a parent's name, which means you are the one dealing with the IRS.
- The Tool: If they are serious about editing, they are likely using CapCut or Canva.
If I had a nickel for every time a middle schooler told me they were going to "quit school and just do YouTube," I’d have more money than most of those kids will ever make from AdSense.
It’s the modern version of wanting to be a rockstar or a pro athlete. But instead of a guitar or a basketball, they’re holding an iPhone and asking you to buy a ring light. As parents, it’s easy to dismiss this as "brain rot" or a waste of time, but there’s actually a pretty sophisticated economic engine under the hood of these apps.
If your kid is starting to talk about "monetizing," "RPM," or "the fund," they aren't just speaking a different language—they’re looking at these platforms as a career. Let’s break down the difference between the two biggest players: TikTok and YouTube.
When kids talk about making money on social media, they usually mean one of two things:
- YouTube AdSense: This is the "old school" way. YouTube puts an ad at the start or middle of a video. They collect money from the advertiser and split it with the creator. It’s a transparent, relatively stable business model.
- TikTok Creator Rewards Program: (Formerly the Creator Fund). This is a pool of money TikTok sets aside to pay creators based on views. It’s notoriously opaque and generally pays much less per view than YouTube.
Learn more about the differences between YouTube and TikTok for creators
It’s not just about the money; it’s about the status. In a world where MrBeast is more recognizable than most movie stars, "Creator" is the ultimate job title.
They see the lifestyle—the gaming setups, the travel, the "collab houses"—and they don't see the 14-hour days spent in Adobe Premiere Rush or the soul-crushing experience of reading hate comments. To them, it looks like getting paid to play Minecraft or Roblox.
YouTube is where the "real" money lives. If your child wants to build a "business," this is the platform.
The Requirements:
To even apply for the YouTube Partner Program, you need:
- 1,000 subscribers.
- 4,000 hours of public watch time in the last 12 months (or 10 million Shorts views).
- To be 18 years old (parents can set up the account for minors).
The Payout:
YouTube pays based on CPM (Cost Per Mille/thousand views). If a kid is making videos about high-value topics (like tech reviews or finance), they might make $10–$20 per 1,000 views. If they’re just doing "Skibidi Toilet" memes, it’s much lower.
The beauty of YouTube is "passive income." A video they made two years ago about The Legend of Zelda can still be making $50 a month today.
TikTok is the "fast fashion" of content. It’s easy to get 100,000 views on a random video, but turning those views into a steak dinner is much harder.
The Requirements:
- At least 10,000 followers.
- At least 100,000 video views in the last 30 days.
- Videos must be longer than one minute to qualify for the new Rewards Program.
- Must be 18 years old.
The Payout:
TikTok’s payout is famously low. Creators often report making a few cents for every 1,000 views. You could have a video go "mega-viral" with a million views and only see $20–$40.
Most TikTokers don't make money from the platform itself; they make it from "Brand Deals" (selling out to a skincare company) or "Live Gifts" (where people send virtual stickers that can be converted to cash—this is where things get sketchy for kids).
Is this a valid "entrepreneurial" experience? Honestly, it can be.
If your kid is learning how to use CapCut to edit, Canva to design thumbnails, and ChatGPT to help script their ideas, they are learning actual marketable skills. They are learning about "hooks," audience retention, and digital marketing.
However, if they are just doing "NPC streams" (look it up, or don't, it's painful) or reposting other people's content hoping to get lucky, that’s not a side hustle. That’s a slot machine.
The Hidden Costs for Parents
If your child does start making money, you need to be aware of the "Parent Tax":
- The IRS: If they make over $600, a 1099 form is coming to your mailbox. You will owe taxes on that money.
- Privacy: To get paid, you have to give these platforms a Social Security Number and a bank account.
- The "Work" of Parenting: You become the manager, the legal department, and the HR department.
- Ages 10-12: This is the "sandbox" phase. Let them make videos, but keep them private or on a restricted "Brand Account" you control. Focus on the craft of editing, not the count of views. They shouldn't even be thinking about money yet.
- Ages 13-15: They can have their own accounts on YouTube or TikTok (with supervision). Use this time to talk about the "Algorithm" and how it’s designed to keep them addicted, not to make them rich.
- Ages 16-18: If they have a genuine following, you can discuss setting up a joint account for monetization. This is a great time for a "money talk" about taxes, savings, and the fact that "influencing" isn't a 40-year career path.
Ask our chatbot about setting up safe social media accounts for teens
Let’s be real: the odds of your kid becoming the next Ryan's World are about the same as them winning the Powerball.
The "Creator Economy" is built on the backs of millions of people working for free. TikTok and YouTube love that your kid wants to be a creator, because it means more free content for their platforms.
The biggest danger isn't that they won't make money—it's that they will tie their self-worth to a view count. If a video "flops," they feel like a failure. If a video "blows up," they get a massive dopamine hit that they’ll chase for weeks.
Instead of saying "That's stupid, you'll never make money," try asking:
- "What do you like more: filming the video or seeing the comments?"
- "Do you know how many views it takes to buy a pair of Jordans? Let’s look at the math."
- "If the 'Algorithm' stopped showing your videos tomorrow, would you still want to make them?"
If your kid wants to try their hand at YouTube or TikTok, treat it like any other hobby. If they wanted to play travel baseball, you'd buy the cleats and go to the games. If they want to be a creator, help them learn the editing software and talk to them about digital citizenship.
But don't let them—or you—confuse a "Rewards Program" with a paycheck. In the world of social media, if you aren't the one paying for the product, you are the product.
Next Steps
- Audit the Apps: Check the privacy settings on their TikTok and YouTube accounts.
- Set a "Creator" vs "Consumer" Ratio: For every hour they spend watching "brain rot," they have to spend 30 minutes learning a skill (editing, scriptwriting, etc.).
- Talk about the IRS: Nothing kills the "influencer dream" faster than explaining how income tax works.