Same thing here, but the owner of the school where I teach pays me 15 an hour (not joking).
Sometimes its a matter of giving the parents a kick in the pants rather than the students (sometimes its hard, because I'm only 22, and some of these parents are 40's or 50's). If it's an issue that I can't see myself and student solving, I have to tell the parent that they need to help out at home or else it'll become stagnant VERY quickly. For some students, once they can break the shell and get into some basic form of practice habits, and realize that when they practice, they finish pieces (who'd've thought?!), they can naturally become more motivated in finishing more music.
Recitals are also good. I let them know 2 months in advance when the recital is, and that they should aim to have 2 pieces ready. Straight up, if they don't practice and aren't ready, they can't participate. I used to let everyone play, but it ended up making overly long recitals where 30% of the students painfully struggled through pieces.
Blindly saying "please practice", will get the kid to say "why?", then you say "because". Kids aren't totally dumb

. Usually when they see the more advanced students (some of whom are the same ages as the non-practicing kid) they'll ask "whoa.. how long have they been playing". That's when I tell them that the advanced student practices every day and that they worked very hard to have their piece ready...
Again, the parent has to help with this, because, often, you only see the student for 30-45 minutes a week... you have less influence than their most hated teacher at school.
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I also realized your initial question wasn't necessarily about how to get kids to practice (I just posted a few rant-oriented things in this forum lol).
I'm kind of in the same boat, have one more year in my music degree (I foolishly took economics for two years knowing that I had no knack for it.. and ended up restarting in performance). There are so many ways to branch out with music (I'm teaching currently, and accompany at a dance school, and am pretty busy during instrumental exam times, where I get to charge my own rate wooo!). I've recently took an interest in studio musician programs, and audio production. Not necessarily to be a sound engineer... but seriously, years of classical training make picking up a new style very easy; harmony/theory/sight reading/ear training CAN be extremely useful in a practical setting other than teaching it. What if you looked into more collaborative music? Chamber groups? Music studios needing session musicians, or get a group and play at local functions like weddings or fund raisers etc.
I'm still brainstorming where I should be applying this winter, and those are some things that came to my mind. The school where I teach has become a total dead end, the owner is VERY old and has stopped putting any effort. Her reluctance to giving raises probably means she's going to retire soon and is trying to squeeze out every last freaking penny (she pulled out newspaper ads last year).