If you weren’t born in this country, the first thing you learn when you arrive is that “time is money.” Time in America is short and precious.
So, to assess how precious time is for Americans, the financial planning company Empower asked 2,204 adults between March 11 and 14 of this year how much money they thought an hour of their time was worth.
On average, Americans value their time at $240 per hour. Based on a standard 40-hour workweek, this places their perceived value at $499,200 per year, or nearly eight times the average salary in the U.S., currently at $59,384.
As people value their time so highly, many are willing to spend money to gain a little more time or achieve a happier life, the survey showed.
Which age group values their time the most?
The value you assign to time depends on your age, the data showed.
• Millennials (born between 1981 and 1996) assign the highest value to their time, saying an hour is worth $328.84, with a quarter of them valuing that at over $500 – the highest percentage of any generation. Only 6% of Boomers priced an hour at $500 or more.
• Generation Z (born from 1997 to 2012) said an hour of their time would cost $266.92.
• Generation X (born from 1965 to 1980) said their time was worth $215.90 per hour.
• Boomers (born from 1946 to 1964) said an hour of their time is worth $137.19.
The Millennial generation values their time more due to a sense of lost time, such as the financial crisis of 2008, when many were entering the job market, or the volatility caused later by the pandemic. Record levels of student debt and some of the highest inflation and mortgage rates in decades, which Millennials say prevent them from buying homes, have also shaken them, Empower states.
How much would you give up to regain an hour of your time?
Time is so precious that 26% of Americans said they would accept a 15% pay cut for more free time. Generation Y (41%) was the most willing to do so, Empower said.
Americans would also pay someone to do things for them to “gain more time.”
• Thirty-six percent said they prefer to pay more for an item to be delivered rather than drive 10 minutes to get it, the survey said.
• More than 2 in 5 Americans said outsourcing household tasks improves work-life balance. One-third of Generation Z would pay up to $5,000 a year to save time, giving up tasks like cleaning and gardening, and 36% of Millennials would shell out up to $10,000 for someone to take on household chores and prepare meals.
• Americans dislike managing their money. More than a third of Americans procrastinate when it comes to financial tasks, such as paying their bills, and 26% said they would spend $5,000 annually for someone else to manage their finances, investments, and long-term savings.
What makes people feel rich?
Wealth is not just about the bank account for most Americans. Sixty-three percent said they “feel rich” if they have enough time to spend with family and friends, according to the survey.
Almost a third feel comfortable going into debt if it means gaining more free time or a memorable experience.
Nearly 40% of Americans say saving time is more important than saving money, and that number rises to 52% when considering only Millennials, the survey showed.
And what about retirement?
Almost half of Americans feel they are running out of time to save for retirement, although 44% claim they started saving money early enough.
Forty-three percent said they wish they could go back in time to start saving earlier, but nearly half said they would prefer to have a longer retirement with less money than to retire later in life with more, the survey showed.
The average 401(k) balance for Americans is $291,810, and for people in their 50s approaching retirement age, it jumps to $580,259, according to data from Empower Personal Dashboard.
Source: USA TODAY