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Why are you only working 2 hours a day? That's ridiculous. With that setup you're managing to BOTH (a) have almost no money and (b) still be tied down to a job all summer.
Unless you're going to school (?) all summer, I say get a full time job and explain to the mom, "I'm sorry, but I did the math and realized I can't afford to work for $60/week this summer."
Offer to set her up with a high school senior you know, or someone else who's desperate/unskilled enough to take that kind of pay -- I mean really. You're around 20 years old, right? Go waitress for like $80/night and still have your mornings free to sleep in and your afternoons free to work on your tan or watch Oprah.
You're worth more than $5/hr, even if it's tax free. And being a wet noodle -- wtf were you thinking, not saying anything when she handed you the $60 check?! -- is going to get you precisely nowhere.
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