What are ways in which a teenager with good photoshop skills earn money?

I was in your position at one time.  Here is how I was able to make money with my skills quickly: 1.  Get a paypal account, and get a filing drawer/box to keep track of the administration.  Buy this book:  http://www.amazon.com/AIGA-Professional-Practices-Graphic-Design/dp/B008SM1KXS   and join this organization:  http://www.aiga.org which will give you guidelines, prices, contract templates and more.  If you don't have enough money to buy the book, just borrow a past version from the library or take photos of the pages at your local large bookstore.  2a.  Look at local small businesses around you (start with friendly business owners you know) who have logos/signs/websites that look unprofessional - designs you KNOW you can easily improve.  Also, think about friends of yours - or family members who want to start a business but don't know how to advertise themselves - and make them a logo and business card! 2b.  Quickly design a few of these peoples/business' logos/design improvements and keep the sketches and design printouts in separate files with their name on them. Don't spend more than an hour or two on each design because you haven't gotten their buy in yet.  You are just building your portfolio right now, and need their buy in to get paid. 3a. Talk to them without mentioning that you already designed something for them, and let them know that their business "branding/marketing/advertising" would look better if they had a new design.  If they show any interest or agreement at all, then let them know you would like to show them some ideas you have.  Don't show them until you get interest first. 3b. Bring your sketches and printouts of your design to them, but DO NOT LET THEM KEEP THE DESIGNS!  Show them to them VERY briefly - enough to let them know that you can do professional work and your designs are an improvement on what they already have.  If you let them hold the designs for an hour or overnight, then they can just show them to another 'older' designer to develop.  They can also just bring your designs to a printer or web designer and leave you out completely.  Unfortunately, this can happen with friends and family as well as business people you don't know. 4. If they say YES to paying you for your design, but show apprehension, then let them know you work with their budget.  You should also size up their budget by estimating how much they pay for other buisness services they need on a monthly basis.  If you are doing a tiny tiny project for a family member who can also give you a recommendation for other jobs - you can consider doing design for them for a very small fee or free.  But, only do work like this for people who RESPECT you on a high level and you can trust them.  Anyone else should pay according to their budget.  (ask me if you need an estimate for this) Use the book above to estimate a price for your work.  If they can't afford those prices, work with their budget, and show them the price it's worth in the book before you negotiate.  If you are starting out, it's better to do a design for free or low cost and get a great reference/recommendation for future business, then to say you won't do the job.  Only do a low or free price for nice people who want less then $100 of design - like a simple logo, simple flyer, or one simple blog page setup.  Everything else should be paid for. ALWAYS charge them separate for the logo  - because some people will try to say it's part of the poster, website,.... but it isn't!  Their logo will make them money for many years... so they should pay you something for that. 5.  Once they say yes, then make an invoice in paypal, save it as a draft, print it out, and bring it to them to discuss a final price.  If you are doing something for free, still send them an invoice for the real price with a 100% discount  File the printed invoice in your file for that account. 6. In most situations, you also want a contract with each job you do.  At the beginning, you might not want do do this with your friends and/or family, but with anyone else make this a REQUIREMENT. Keep track of your invoices and paperwork so you can file it with your taxes next year. Also.... print this out and share it with your parents  - who will only respect you more for being so business savvy! Remember, that joining http://AIGI.org has many benefits - like legal assistance, etc,.. so I highly recommend doing that from the start.  Putting your membership on your website homepage also looks impressive to your future clients. Let me know if this helped & if you have anymore questions. Good luck!