I'd take an entirely different tack from a lot of the posters here. From my perspective, if a 16-year-old has the will, motivation, and desire to take on adult responsibilities, then that's not something to be discouraged. As a father of two, I know it's tempting to want to keep them "kids" as long as possible, but in the long run it doesn't benefit anyone.

As for getting other neighborhood jobs; I think mine is pretty typical ( at least in the 'burbs ) that jobs for teens are a heck of a lot more scarce than they used to be. Most people are using lawn services, and therefore uninterested in having a teen do any yard work. Parents go out a LOT less than the ones in my parents generation, so babysitting jobs are few and far between ( and, realistically, the few that are there are going to girls more than boys ).

In regards to money - considering how absolutely abysmal the money management skills of even many of the college students I encounter are, there's a lot to be said for learning how to allocate your scarce funds instead of just having it handed to you every week. How much money does a 16-year-old need? In an age of expensive cell phone plans, computer games, insurance for a car, etc. it's a heck of a lot more than I had to worry about 25 years ago. :-)