The gig economy has seen a significant rise in recent years, with food delivery services like Uber Eats becoming increasingly popular. With more than 112 million Americans utilizing food delivery services and millennials preferring delivery over dining in-person, the demand for delivery services has skyrocketed. However, the gig economy, including delivery services, comes with its own set of challenges and risks for workers.
Delivery workers for companies like Uber Eats are classified as independent contractors, which means they do not receive the same protections and benefits as traditional employees. This lack of basic worker protections leaves gig workers vulnerable to financial instability, especially since many Americans struggle with financial literacy. Financial illiteracy can exacerbate the challenges faced by gig workers, who may already be earning low wages and facing economic insecurity.
A recent survey of delivery drivers revealed that a majority feel underpaid and are considering taking on second jobs to make ends meet. Many gig workers are forced to work through illness and injury due to the lack of benefits like health insurance and sick leave. The Economic Policy Institute found that a significant portion of gig workers struggle to afford basic necessities like food and utilities, highlighting the financial hardships faced by these workers.
Financial education is crucial for gig workers to navigate the challenges of self-employment and the gig economy. Understanding how to budget with fluctuating income, create emergency savings, and protect oneself with insurance can help alleviate some of the financial burdens faced by gig workers. Additionally, knowledge about tax implications, asset depreciation, and business structures like sole-proprietorship LLCs can empower workers to make informed decisions about their finances.
While regulation may provide some protections for gig workers, mandatory personal financial education in high schools can equip future workers with the knowledge and skills needed to thrive in the gig economy. By providing financial education, we can empower gig workers to take control of their finances, make informed decisions, and work towards financial independence. Knowledge is power, and financial knowledge can help gig economy workers reclaim autonomy, flexibility, and sustainable wages in an industry that promises freedom but often falls short.
