Money education – No one told me how to do this

The value of teaching our young people about hustles

According to the IPSE, the UK had 4.4 million solo self-employed people, meaning they worked alone for themselves and did not employ people. We may know them as freelancers who offer a particular set of skills (at the risk of channeling Liam Neeson here) such as a graphic designer.

In addition to this, in January 2021 Micro Biz Magazine offered the below statistics about the number of people with a side hustle as well as their main job:

There are 1.1 million people in the UK with a second job or who are self-employed in addition to a primary job.
That’s 3% of the working population.
Despite this, 25% of people in the UK claim to have a side hustle.
37% of people in the UK say that their salary alone does not allow them to have a comfortable lifestyle.

Whilst the exact number of people is difficult to quantify (what counts as a side hustle and does everyone reveal it?) the trend is that more people are willing to have a primary job and then try to earn money on the side. This can be through anything from consulting to proof reading and becoming a seller/promoter of beauty brands on social media (the modern take on the Avon lady).

Of course there are discussions to be had here, what does it say about our societies that people have to have multiple jobs to live a life they are comfortable in? Are peoples’ expectations of what they should have too high? Or is the average salary and the average person’s spending power too low? I do not explore these in the resources, but it is something that we as adults can think about as we prepare young people to go into work.

Needless to say, our students will enter a world where it will be commonplace to have more than one source of income from a 9-5 job.

The accompanying slide decks cover different side hustles and what people can do to develop them as well as some famous side hustles that became big businesses.

What may seem to us as teachers as a hobby, is being monetised by many young people. However not every hobby should be monetised as some may feel that by expecting to earn from it can take away from its joy.

It’s also important to note that companies are increasingly turning to freelancers to complete tasks they choose to outsource, so the demand for people who want to complete these tasks whether they be graphic design or proof reading for example continues to grow.

Does Money Make Us Happy?

Many people may have had this thought during lockdown. Or perhaps another question: How much money makes us happy? Some have realised how little they have spent superfluous items during the pandemic when our access to, or need for, these items has been limited. Some may have questioned whether they need to return to that level of spending again.

The thing is, unless we discuss the relationship between money and happiness with our students, we leave them open to being influenced without dialogue. And this is where the negative connotations with money come into play. These can be anything from ‘Money is the root of all evil,’ or ‘I have to make as much money as possible at any cost’ and everything in between.

The average salary in the UK is £38,800

Studies have shown that happiness does not increase beyond a certain point (around £50,000)

But that’s still a lot of money.

The bit that often gets missed out of the discussion is what it allows you to do. Where do the happiest people spend their money? Ask students and they often equate money with buying power. And that makes sense. Money allows you to buy fast cars, nice clothes, wonderful food etc… But it also allows you to do things. Serve others. Create something greater than yourself. And again if we don’t discuss this with our students, they’ll be chasing things that they hope will make them happy rather than experiences that could really change their lives.

So the slide deck being sent out this week discusses the power of money with our students and the ability to use it in a way that makes us happy.

It introduces them to ideas on minimalism and the growing movement towards it (with a short video). It also uses a video to introduce them to research that suggests money can indeed make you happy, but when you don’t spend it on yourself.

What if we could get students to not aspire towards money for money’s sake only (which is fine by the way) but also as a tool to ensure experiences that allow them to have more fulfilling lives?

The cost of living

Why our students need to know how much its costs to live in the UK?

According to Revolut the average cost of living in the UK is as follows:

£2,249 per month for a single person; and
£3,803 per month for a family of four.

This makes the UK the 7th most expensive country Western Europe.

Of course there is an ongoing argument about whether this is a true reflection and what is included in the cost of living in the UK. Are cinema tickets essential? How many TV subscriptions does the average person need?

Throughout my career in education I have run an exercise to help students calculate cost of living based on their expectation. I should highlight here that it is not without its flaws. I am not aware of future inflation rates (which is why I always highlight that inflation will continue to make living costs higher and the importance of minimum wage reflecting this rise in cost of living). However what it does do for students is give them some idea of what things cost and what the life they have dreamed up for themselves costs.

Why do students need to know about cost of living?

Awareness – In order to ensure we are creating a culture of responsible and able citizens that can participate in society and are well informed.

Motivation – Needless to say, many times, when I complete this activity students are left shocked at how much money they would need to earn in order to live the life they want. For many this makes them rethink the career they want to go into and aspire to something more. For some it makes them question whether the life they see on social media and influencers living is actually real.

Expectations – I believe we have a moral responsibility to both encourage our students to dream big and understand the real lay of the land so they are not surprised by life when they leave school but in command of it.

Cost/benefit analysis – Without the cost of living many schools expect students to make important decisions about life – like whether they should go to university or do an apprenticeship. As adults we often have to work backwards from the goal in life to put in actions that will get us there. Why is it any different for our students?

Helping disadvantaged students – The way money is spoken about (if spoken about at all), budgeted, and the purchases prioritised will vary home to home but also whether our students come from a background where parents rely on the government for financial support. The freedom they will have had to make financial decisions will vary as a result. We must ensure that our students, who we want to be active participants in the economy are equipped with the ability to make financial decisions that their parents may not have been able to.

The activity

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