In a fast-moving, capital-driven society, it’s no secret that many Americans don’t find their time to be an expendable commodity, but a new survey has attempted to ascertain exactly how valuable the ticking clock is to a working class citizen.
Empower, a financial planning firm, asked 2,204 U.S. adults between March 11 and 14 how much money they thought an hour of their time was worth.
On average, people valued their time at a whopping $240 an hour. Based on the standard 40-hour work week, that puts their perceived value at $499,200 annually, which is nearly eight times higher than the average American salary of $59,384.
Though the study also found that the value people put on their time was dependent on their age.
According to the data, millennials (born from 1981 to 1996) place the highest value on their time, saying an hour was worth $328.84, with a quarter of them pegging that at more than $500 – the highest percentage of any generation. Only 6% of Boomers priced an hour at $500 or more.
Whereas Gen Z (born from 1997 to 2012) said an hour of their time would cost $266.92, Gen X (born from 1965 to 1980) said their time was worth $215.90 an hour, and boomers (from 1946 to 1964) said an hour of their time is worth $137.19.
Reportedly 26% of Americans said they’d take a 15% pay cut in exchange for more free time, and millennials (41%), were the most willing to do so.
The study argues that millennials seem to value their time more due to the economic instability caused by the 2008 financial crisis that occurred when many of them entered the workforce. After facing record high levels of student debt and some of the highest inflation and mortgage rates, the data finds them to be financially rattled, according to Empower.
Though for many Americans, wealth isn’t just about what’s in their bank account. Sixty-three percent said they “feel wealthy” if they have enough time to spend with family and friends, the survey said.
Nearly one-third feel comfortable taking on debt if it buys more free time or a memorable experience.
