How kids make money online

Depop is a social e-commerce platform that lets users buy and sell secondhand items. Most items on Depop are clothing items.

Like social media platforms, users can follow others and view an ‘explore’ page that suggests items to purchase.

To sell on Depop, users must be 13 or older. However, children under the age of 18 must get parent permission. Additionally, the payment system is linked to Paypal, which requires users to be 18 or older. As such, children are unlikely to use Depop without parents or carers knowing.

How many kids use Depop?

Depop has a user base of about 30 million users and most are aged below 26-years-old. While there isn’t an exact figure for how many are under 18, the focus on teens and young adults suggests a large number.

In a survey of Gen Z users, Depop found that 75% of 2167 surveyed users said their main reason for buying secondhand items was to reduce consumption.

Etsy is an online marketplace that promotes handmade and personalised items for sale. Children aged 13-17 can sell on Etsy. However, parents or carers must create the account and shop for under-18s. Additionally, the financial information, preferred name and email address must all belong to the parent.

Children can then sell items they make such as drawings, crafts and other creations.

How many kids use Etsy?

There are over 95 million active users on Etsy across the world. However, because account owners must be 18 or older, it’s impossible to know how many are under 18.

However, Etsy is most popular among 18-35-year-olds with 30% of sellers living in the UK.

Vinted is an online marketplace designed for buying and selling secondhand clothing and accessories. Its Terms and Conditions say the service is not for those under 18. However, parents can create these accounts on their children’s behalf. They take responsibility for any activity on the account.

Teens can sell their old clothes to make money (and space) for new items. Like Depop, Vinted encourages users to recycle and purchase used clothes rather than spending regularly on new items.

How many kids use Vinted?

Because Vinted is for those aged 18 and over, it’s difficult to know how many children use the service. It has millions of users around the world with over 8 million in the UK alone. It’s likely that many teens and young adults use the app to build their wardrobe and style.

Professor Williams says that there are 4 categories when it comes to in-game spending.

1. More of the game

“The first is simply more of the game. If we think about games having content like a TV series, then more of it is like another episode or season. That might mean more places to explore, more villains to defeat, etc.”

2. Virtual in-game items

“The second is virtual items within a game. Usually these are things that will help the player compete like a faster car, stronger sword, etc.”

3. Items for self-expression

“The third are items that actually don’t help a player win, but instead let them self-express. These are things like a colourful hat, a fancy gun or even a whole different appearance for their character or in-game avatar. Surprisingly to many, this is a very large portion of spending; it goes to show how important identity and expression is for players of all ages.”

4. Skipping ads

“Lastly, many of these games are free or are driven by watching ads, and so the player can instead pay with their time or attention. Game developers often build in ways to skip these steps to get to the good stuff without either grinding away meaninglessly (the developers make portions not fun so players want to skip it) or watching ads. Naturally, they allow this with small (or large) purchases.”

“Many of these purchases are small and are called ‘microtransactions’ (MTX), though some escape the micro definition and can become quite expensive.

When new content becomes available as an add-on to the original game, that’s called ‘downloadable content’ (DLC).

Some video games allow players to help create the content (whole games, cosmetics, levels, etc.), which other players can then consumer or buy. Sometimes they offer players a cut of the profits, and sometimes not. The stuff players make is called ‘user-generated content’ (UGC).

A new look for a character or an object in a game is a ‘skin‘, which means it retains its original function and usually its shape, but now it looks different. An example would be a female elf is now dressed up like a modern rock star, but otherwise can do the same things.”

Dmitri Williams (PhD, Michigan 2004) is a professor at the University of Southern California Annenberg School for Communication, where he teaches courses on technology and society, games and data analytics.

His current work focuses on the study of influence among populations through the concept of ‘social value.’ His ongoing work centres on the social and economic impacts of new media, often within online games. He works actively with companies and startups across the tech sectors.

His work has also been featured in several major media outlets, including NPR, CNN, the Economist, the New York Times, the San Francisco Chronicle, the Chicago Sun-Times and others. Williams testified before the U.S. Senate on video games and has served as an expert witness and consultant in federal court cases.

Visit dmitriwilliams.com or follow him on LinkedIn.

While GoHenry did not contribute to this guide, their research helped inform much of the content within this guide.

GoHenry is a financial technology company that focuses on financial education for 6-18-year-olds. The company offers a Visa debit card and app for under-18s to help them develop financial literacy skills.

In this guide, we referred to the following research from GoHenry:

• The Youth Economy Report 2022
• The Youth Economy Report 2023
• Kids’ Eye View of the Cost of Living Crisis