Timing the Market

Teacher Facilitation Guide

Lesson 3 of 5

Duration: 60 Minutes

Lesson Goal

Students will quantify the "hidden labor" of self-employment. They will calculate their Effective Hourly Rate (EHR) by including non-billable time and evaluate the opportunity cost of their side hustle compared to a traditional job.

Key Vocabulary

• Effective Hourly Rate (EHR)
• Non-Billable Hours
• Opportunity Cost
• Labor Variance
• Administrative Overhead
• Customer Acquisition Time

Materials Needed

Effective Hourly Rate Worksheet
Timer/Clock
Gig vs. Wage Choice Cards (Optional)

Instructional Flow

Hook

10 MINS

The High-Variance Hustle

Conduct a rapid-fire simulation. Offer students two choices for a 2-minute "work" task (e.g., sorting paperclips):
Option A: A guaranteed 5 "currency" units (candy, points, etc.).
Option B: A 50/50 chance at 15 units OR 0 units.

Debrief: Discuss the stress of Option B. Explain that side hustles are often Option B, plus you have to spend time finding the job before you even start sorting clips.

Intro

15 MINS

Billable vs. Total Hours

Introduce the concept of Non-Billable Hours: Travel, marketing, emails, invoicing, and prep work.

The EHR Formula: Net Profit / (Billable Hours + Non-Billable Hours) = EHR.

Activity

35 MINS

The Opportunity Cost Audit

Students use the Effective Hourly Rate Worksheet to map out a typical "work week" for their side hustle, including the invisible hours. They then compare this to the local minimum wage or an entry-level part-time job.

Teaching Opportunity Cost

Opportunity cost is the value of the next best alternative you give up. For a student, the opportunity cost of a side hustle isn't just money—it's also:

Study Time

Social Life

Rest/Health

Discussion Guide

"If your EHR is $5 less than working at Starbucks, should you stop the hustle?"

Goal: Explore non-monetary benefits like building a portfolio, flexible scheduling, or learning a new skill.

"How can you increase your EHR without raising your prices?"

Goal: Lead them toward automation, efficiency, or reducing non-billable time (e.g., templates for emails).

Assessment Checklist

Student can identify at least 3 types of non-billable tasks specific to their business.
Student correctly calculates EHR using the multi-step formula.
Student can articulate a scenario where a lower EHR is still worth the opportunity cost.

Timing the Market

Timing Market Teacher Guide

Effective Hourly Rate Worksheet

Timing Market Slides