Start thinking: These three people each made £500 in different ways. Who keeps the most? How do you know?
Session 11: What Are the Different Ways People Earn Money?
£500 on a payslip
PAYE
£500 invoice to a client
3. Seller
Side hustle
£500 seller dashboard
2. Freelancer
Self-employed
The payslip, invoice and dashboard only tell part of the story - they don’t all show how much money ends up in your bank account.
Employee
Tax already gone
Freelancer
Set aside 20–30%
Side hustle
£1k tax-free
The payslip already had tax deducted, the freelancer with the invoice would need to set aside money to pay tax later, and the side-hustle reseller would get a small tax free allowance. The way that you earn money determines how and when you pay tax.
vs.
Who is really better off?
Employee (PAYE)
Tax handled automatically. Less to manage.
Freelancer
Keeps £500 today, owes 20–30% later.
Each has advantages and disadvantages: they end up paying the same amount of tax, but in different ways and at different times.
Today’s Big Question:
How do people earn money in different ways?
PATHWAY 2
Side Hustles: Earning Money Your Own Way
10 mins
PATHWAY 1
Different Ways to Work: Freelance vs PAYE
10 mins
Finished? Have a go at the Side Hustler Minigame.
How do people earn money in different ways?
Different Ways To Earn
Task 1: Income Inquest
Copy these 3 columns:
Employed A job where someone is paid by an employee | Freelance / Self-employed Work where someone finds their own customers or clients | Side Hustle Extra income, often small-scale or alongside school or work |
Delivery driver | Youtuber | Etsy seller |
Dog walker | Online tutor | Music teacher giving private lessons |
Content creator earning brand deals | Selling handmade jewellery online | Supermarket worker |
Barber working in a salon | Plumber running their own business | Freelance photographer |
Different Ways To Earn
For each job, work out what type of work it is most likely to be - employed, self-employed or side hustle. Write it in the correct column. Some fit in more than one column. (3 minutes)
Regular pay | Can choose your clients | Earn extra money from a hobby |
Tax taken automatically | Paid holiday | Manager sets tasks and shifts |
No guaranteed income | Can grow into a business | May need to complete a tax return |
Can fit around another job or school | Could become popular through social media | Responsible for setting prices |
Different Ways To Earn
Now work out the advantages and disadvantages of each
type of work. Write each fact below under your three headings - does it apply to employed, self-employed or side hustle work? Some apply to more than one. (3 minutes)
Different Ways to Earn
Task 2: One Skill, Three Ways To Earn
Many skills can be used to earn money in different ways. For example, there are many different ways to earn money as a baker:
Employed Work as a baker in a bakery or supermarket | Self-employed Run a cake-making business | Side Hustle Sell cupcakes to friends, family or at local events |
Gaming | Photography | Coding |
Hair styling | Tutoring | Graphic Design |
Different Ways To Earn
Choose 1 or 2 skills and think of as many different ways that you could earn money with it: (3 minutes)
Discuss:
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Debrief: Different Ways To Earn
WE HAVE COVERED:
Learner Journal
Part 1: Three Things I Learnt Today
Open your Learner Journal. Write down three things you learnt. These can be facts, ideas, or things that surprised you.
If you could design your ideal income setup at age 25, what would it look like? How would it use employed, self-employed and side hustle work?
Write your response in your Learner Journal, then finish sections 3-5.
Learner Journal
Part 2: Reflective Question
“Your earning ability today is largely determined by your knowledge, skills, and your ability to apply them in your work. To earn more, you must learn more.” Brian Tracy, author (2000)
There isn’t just one way to earn money. Every income choice comes with different freedoms and responsibilities. The more you understand your options, the more control you have over how you build your financial life.
Lock-In Quote
Extension Activities
Extension 1
Extension 2
Why Are Diamonds Valuable?
When Slavery Fought Back