Proceed with Caution - While blogging for an income can obviously be a good thing for teens for some of the above reasons the responsible (almost) parent in me wants to also stress that teens need to be a little careful with it also.
I'm not wanting to be a downer here but while the web can be a fun place that is full of opportunity it's worth remembering that as with any business there are risks and responsibilities that people need to manage.
Darren has more goodies on his site (you'll have to check it out to discover more) but he touches everything from security to money to time management (my area of weakness). A good read--especially if you are into blogging.
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