4 Ways to Determine How Much Money Your Time Is Really Worth
Written by
Tina Nazerian
Edited by
T. Woods
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How much is an hour worth to you? It likely depends on which generation you’re in.
A recent study by financial planning firm Empower explored how Americans view their time in relation to money — and found that Americans “say their time is worth $240 per hour, on average.” The firm calculated that when viewed from the lens of a “standard 40-hour week, that puts the perceived value at $499,200 per year.”
But generationally, that average varies. Overall, millennials place a higher dollar amount on each hour than other generations, whereas boomers place the lowest dollar amount on an hour in comparison to people in other generations. According to the study, millennials “say it’s worth $328.84 per hour, followed by Gen Z at $266.92, Gen X at $215.90 and Boomers at $137.19.” In fact, the study found that one in four millennials “value their time at over $500 per hour.” However, only 6% of boomers indicated they had that same rate.
Those differences can play out in the choices people make in their lives. For instance, the study revealed that 52% of millennials prioritize saving time over saving money. The study also found that 30% of those in Gen Z “would pay up to $5,000 per year to save time not doing everyday tasks like cleaning and yard work, and 36% of Millennials would shell out up to $10,000 for someone to take on in-house chores and cook meals.”
As for how you can determine how much money your time is worth? Think about what matters to you as far as being with your family and friends, having more free time, making memories and saving time versus saving money. The study noted that 63% of respondents said they “‘feel wealthy’ if they have enough time to spend with family and friends. Nearly a third feel comfortable taking on debt if it buys more free time (29%) or a memorable experience (29%).” And finally, 37% indicated that “saving time is more important than saving money.”
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