Is the Gig Economy Good or Bad for Parents?

I was listening to former Barstool CEO and current Food52 CEO, Erika Ayers Badan, discuss the shifting of the workforce from salary to a full fledged gig economy. She thinks this is going to be the norm going forward. This is a world where people work for 2, 3, 4 or more companies simultaneously as independent contractors. This then begs the question, is this a good thing for parents???

I care about this topic because I currently find myself in this situation. This summer I’m doing some consulting and one-off projects for various companies as I try to figure out my next more “permanent” career move. But honestly? I think I’m going to love the gig economy! Or at least I love it right now. As a mom of two small potatoes, the pros outweigh the cons for me. Also, my spouse has a stable salaried position that gives us the privilege for me to work part-time freelancing.

So as the economy shifts from one salary and one company per person to the new gig economy, what are the main pros and cons? Is this lifestyle right for you??? Let us discuss…

Pros:

Flexibility - I love being able to work during nap times, early morning, after the kids go to bed, on a Sunday evening, etc. Flexibility makes life with small kids a tad easier. Flexibility to attend doctor appointments, recitals, the gym, or even just to sit in your car eating a Shake Shack burger by yourself in peace (me yesterday) is life changing.

Multiple jobs - Diversifying your income streams is a great way to recession-proof yourself. If you have money coming in from multiple employers, you aren’t dependent on one paycheck from one company any longer. You can also expand your professional network efficiently and really get a sense of what you like in a company and what you hate. Insight into multiple employers at once is invaluable experience.

Uncapped income - When you consult and/or freelance you control your rate, number of hours worked, and thus your income is can be scaled infinitely. Obviously, this takes skill and the ability to add tremendous value, but you aren’t going to be unfairly capped by a salary.

Control over workload - Some seasons are simply busier than others. The gig economy allows us to control how much we say ‘yes’ to. I love this so much. Holidays coming up? A big vacation? I’m going to say ‘no’ to opportunities that interfere. What a beautiful thing!

Cons:

Instability - Gigs, projects, and consulting work is not guaranteed and does take a solid amount of effort upfront to obtain. There are times when you’ll be overloaded with opportunities and other months where you wonder if you’ll ever be hired for anything ever again (again, me yesterday). The gig economy is not always stable. That is terrifying if your family relies on your income majorly or exclusively.

Budgeting for fluctuations - How do you budget with a varying income? It’s a pain in the a**. I like to use a method I call “Minimum Required Income”. This method allows me to budget using the absolute minimum amount of income required to continue my normal life. This helps me understand how much money we absolutely need to make each month to stay afloat. If you’d like to learn more on how I do this, please don’t hesitate to ask! However, budgeting for lean months ahead of time is incredibly difficult and requires some money management skills.

Lack of benefits and retirement plans - Health insurance, 401(k), taxes. These are all items you’ll need to take a more active role in when you work within the gig economy. You are your own company therefore it is on you to provide your own insurances, retirement plans, and tax payments (hello, quarterly estimated taxes). Again, this takes a higher level of financial literacy and proactive planning.

Not available to everyone - The gig economy is not available to everyone. There are many reasons for this, ranging from industry to personal life situations. A single parent or sole income provider may not have the ability to participate in the gig economy either. Some jobs just aren’t made for the gig economy and never will be.

I’m excited to test the waters of the gig economy. Will I miss the stability of a salaried position? Time will tell! Are you part of the gig economy? What has your experience been like? I would love to find out more from you!

This week in the news - Congress is working on the “Big Beautiful Bill” - will it pass? Will it fail? We shall see. If it does pass, I’ll be sure to discuss how it may impact us normies.

Until then, enjoy your Memorial Day Weekend and thank you to the people who served!

-Catie