Flying For Fun. I am guessing you are a relatively new instructor.
( If not I humbly apologise ). the good news is situational awareness increases dramatically with experience. Never the less as was pointed out by other posters your first responsibility is to your student.
TINSTAFFL How true it is. I think that you have touched on one of the hardest parts of instructing. How difficult it is to give your tenth student of the day the same attention as the first. I can think of more than one flight where in all honesty I was little more than 170 lbs of right seat ballast.
I consider myself very fortunate that I now instruct only part time, with students of my choosing and on my own schedule.