From Tutoring to Trading: Young People Are Investing Their Side Hustle Income

Author: Zara Ransley and Matthew Harker - Co Founders of MyPocketSkill

Editor: Lucy Cooper - MyPocketSkill

So what’s actually going on here?

If you speak to students today, one thing comes up again and again: they’re not just earning money from side hustles.  They are putting it to work.

In between lectures, exams and uni nights out,  many young people are building up income streams early with part-time work and side hustles. But instead of just spending it on trainers and matcha, a growing number are choosing to invest it.

Take Prince P, an 18 year old off to university in September.  He’s used the £100 earned tutoring at MyPocketSkill to kick start his investment portfolio and now invests monthly with any left over income from his part-time job. 

Conversations with young people at MyPocketSkill have revealed this mindset is becoming more common. And it's prompted us to do a deeper dive into Gen Z's investing habits with our upcoming publication of our survey: The Barriers and Opportunities for Gen Z Investing.

In the meantime, take a look at what we've picked up from our chats with a few of them...

Side hustles aren’t just for spending anymore

This is the biggest shift.  Side hustle earnings are no longer just treated as extra spending money or for topping up savings accounts with little interest.  They’re being viewed as capital.

At MyPocketSkill, we’re seeing income from tutoring, business admin, photography and digital design, being channelled straight into investing accounts.

There’s a strong sense that money shouldn’t just sit in a bank account.  It’s the foundation of something longer-term.  A launchpad for investing.

One student who has really taken this approach is Eddie W, a Geography student at Loughborough. He now has £5k in stocks and shares as a result of investing money from his tutoring and social media work.

And then there is Isaac N, who invests £50/ week.  Some of this comes from the money he’s earned from tutoring at MyPocketSkill.

It’s a very different relationship with money compared to previous generations.

Why are so many young people doing this now?

Ask them why they started, and the answers are surprisingly consistent. A lot of it comes down to long-term thinking rather than short-term spending.

One student explained:

“The idea that my money could grow even further than the rate of inflation really interested me.”

Others talk about bigger goals like buying a first home, building financial independence and even paying off student loans.

Starting small is completely normal

One of the most interesting things in this trend is how low the entry point is.  There may be a money myth that you need thousands set aside before you can even contemplate investing but Gen Z aren’t waiting - sometimes they are starting with an initial £50 or putting in as little as £10/ month.

Each young person has an individual approach that suits them as explained by one student who said: “Each month I try to add in at least 10% of my earnings.”

The message is clear: consistency beats size.

Learning as they go

And while the concept of investing can seem overwhelming, most young people we’ve spoken to are taking it slowly, step by step.  Many are self taught, starting cautiously and learning from small mistakes before gradually increasing their levels of investment.

Even those who have started recently tend to share similar lessons.

• Start early, even if it’s small
• Expect ups and downs
• Focus on long-term growth
• Don’t rely on hype or trends
• Be consistent over time

One student, Vlada, 18 who has only just started her investment portfolio reflected on her recent losses due to conflict in the Middle East:

It’s also impossible to ignore how often social media comes up in these stories with TikTok, YouTube, and finance influencers mentioned again and again.

So what does this all add up to?

So while curiosity soars, confidence and capability don’t always match. While some young people are succeeding, many don’t know where to begin or lack the funds to get started.

The government's new Invest for the Future campaign ( yes, the one with Savvy Squirrel) backed by groups like Lloyds and the Money and Pensions Service, will help build knowledge and confidence. But first of all, young people need clearer pathways to earn before they can even contemplate investing as an option.

Zara Ransley, Co Founder and Co CEO of MyPocketSkill said “We are all for helping young people kick start their investment journeys but a key part of the puzzle is still missing - young people need more opportunities to earn money so that they can get started.  Let’s work that into the retail investment strategy.”

Let’s make sure investing is an opportunity for ALL -  by building confidence, capability and opportunity for our young people.

With thanks to the brilliant young people at MyPocketSkill who shared their insights on investing as a young person.

More information

For a copy of our latest survey: The Barriers And Opportunities For Gen Z Investing, contact pr@mypocketskill.com