Childcare Management News & Insights

How to Set Financial Goals and Build Wealth in the Gig Economy

Written by Staff Writer | Apr 1, 2025 2:59:45 PM

Are you making money babysitting after school, on weekends, or during school breaks? Whether it’s part-time hustle or your main gig, you’re already part of the gig economy — and that gives you more control over your financial future than you think.

But real financial power doesn’t just come from making money. It comes from setting smart goals for income, spending, saving, and investing. And the earlier you start, the more powerful the results.

If you’re a babysitter looking to grow your income, manage your money better, and start investing like a pro, keep reading. This guide will show you how to boss up your babysitting income and use it to build serious long-term wealth.

Step 1: Set Smart Babysitting Income Goals

One of the biggest perks of babysitting as a side hustle or full-time gig is flexibility — you decide how much to work.

💡 Start with a monthly income target:
Say you want to earn $1,000/month. If you charge $20/hour, that’s 50 hours a month — just 12–13 hours a week. Totally doable with weeknight and weekend jobs. With SitterSync, you can post your availability to all of the families you babysit for to increase your chances of getting more jobs and meeting your goals.

📈 Track your hours and rates:
Use SitterSync to track your hours, rates, and total income. This will help you understand your earnings and plan ahead. Download the app here from your mobile device. 

Step 2: Spend and Save with Intention

Here’s a simple budgeting rule to follow, especially if you're new to managing money:

The 50/30/20 Rule

  • 50% Needs: transportation, phone, groceries, basic bills

  • 30% Wants: dining out, clothes, travel, fun stuff

  • 20% Savings/Investing: for future goals and financial freedom

Even if you’re just starting out, learning how to save money as a babysitter early is key. The habits you build now will stick with you — and compound over time.

Step 3: Invest Early and Win Big — Roth IRA for Teens & Young Adults

Here’s where it gets exciting: investing.

You may think investing is something for adults with corporate jobs, but guess what? If you’re making babysitting income and reporting it on your taxes, you can open a Roth IRA.

💼 What is a Roth IRA?

A Roth IRA is a special kind of retirement account where:

  • You contribute money you’ve already paid taxes on (which when babysitting, taxes are at the minimal self-employment rate)

  • Your investments grow tax-free

  • When you retire, you can take out the money with zero taxes on the gains

That’s right. Zero. Not even a penny on the growth.

The Power of Investing Early

Let’s say you start investing your babysitting income at age 16.

  • You invest $2,000 per year from age 16 to 25 (just 10 years)

  • You stop contributing entirely after age 25

  • The money grows at a 10% annual return

  • By age 70, that account is worth…
    👉 Over $1,175,000

And you only invested $20,000 total. That’s the magic of compound interest — where your money earns money, and that money earns more money over time.

😲 Now Let’s Compare: What If You Wait Until Age 30?

If you wait until you're 30 to start investing and want to end up with the same $1,175,000 by age 70…

  • You’d have to invest $4,475 per year for 40 years

  • That’s $179,000 total invested, nearly 9x more than starting at 16

Early investing isn’t just “nice to have.” It’s a massive advantage.

📌 Start early, invest a little, and let time do the heavy lifting.

Step 4: Think Like a Business Owner, Not Just a Babysitter

Babysitting isn't just a side job — it's a stepping stone to real financial independence. When you treat your gig like a business, you’ll:

✅ Track income and expenses
✅ Set aside money for taxes and savings
✅ Plan ahead for slow weeks
✅ Invest early for the long term

Whether you’re babysitting on weekends or running a full schedule, learning to manage your money will set you apart. You’re not “just a babysitter” — you’re running your own business.

Final Tips: How to Build Wealth as a Babysitter

  • Report your income so you can open a Roth IRA (check out FutureMoney, Fidelity, Vanguard)

  • Automate savings with a high-yield savings account

  • Start investing early and let time work its magic

  • Use your gig economy job to fund your goals — travel, school, your own future business

Ready to Get Started?

Set a babysitting income goal this month. Open a Roth IRA with your first few hundred dollars. Track what you earn, save, and invest.

It’s not about being perfect. It’s about starting now.

Because when you learn to manage your money early, you’re not just working for today — you’re building wealth for life.