02.12.25 Finding A Side Gig / Finances: Teach Your Children Well
Feb 12, 2025
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Learn about the booming trend of side gigs as many look for extra income, along with tips to recognize scams and understand tax implications. Explore the critical gap in financial education for kids and ways to equip them with essential money skills. There's also a discussion on managing aging parents' healthcare and the complexities of high-mileage vehicle repairs. Plus, get insights on navigating rising life insurance premiums and the importance of improving credit health before applying for new credit.
34:54
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Quick takeaways
The rise of gig work necessitates vigilance against scams and an understanding of tax implications related to app-based income.
Integrating personal finance education at home and in schools is essential for equipping children with vital money management skills for adulthood.
Deep dives
The Growth of Gig Work and Its Risks
Many Americans are increasingly taking on gig work to supplement their income, with a wide range of options available through various apps for tasks like food delivery and handyman services. This form of employment has evolved from traditional side jobs to a more flexible, app-based landscape, notably including companies like Uber Eats and even Amazon delivery. However, the popularity of gig work has also led to a rise in scams targeting individuals seeking these opportunities, with deceptive apps often requesting personal information or upfront fees. It is crucial for gig workers to research and assess the legitimacy of the platforms they plan to use and to be aware of the potential financial pitfalls that may arise from these opportunities, including unrealistic income promises and hidden fees attached to gig work applications.
Financial Education for Children
The importance of incorporating personal finance education into the school curriculum is emphasized as a fundamental tool for preparing young people for financial responsibilities. Current education often lacks comprehensive teaching on practical money management, leading to a gap in knowledge for students and young adults entering the workforce. Parents are encouraged to take an active role in teaching their children about financial concepts from an early age, including budgeting, saving, and understanding the value of money. Engaging in age-appropriate discussions about money management during everyday activities can empower the next generation to make informed financial decisions and avoid pitfalls that many adults face.
Navigating Side Income and Tax Implications
When engaging in side gigs or app-based work that results in income, it is vital to understand the tax implications, particularly regarding 1099 forms and income reporting. The recent tax changes have shifted the threshold for receiving 1099s on platforms like Cash App and Venmo, from $600 to over $5,000, alleviating some immediate reporting concerns for lower-income side hustlers. Nonetheless, all income, regardless of source, must be reported to avoid IRS penalties, making it essential for individuals to maintain accurate records of their earnings. Utilizing tax software to back out non-earned income accurately can help ensure compliance without incurring unnecessary tax liabilities.
So many Americans are taking on side jobs to make extra cash. Clark talks about how important it is to have your scam radar up, and to prepare for the latest tax implications of gig work. Plus, for parents, Clark discusses the state of financial education and ways to give your kids the financial know-how they’ll need throughout life.
