Time is precious and Americans know it.
Financial planning firm Empower surveyed 2,204 adults between March 11 and March 14 and asked them how much they thought their time was worth.
On average, Americans valued their time at $240 per hour. Based on a standard 40-hour work week, their perceived value would be $499,200 per year, nearly eight times the average U.S. salary of $59,384.
Research shows that people value their time so much that many are willing to spend money to get a little more or live a happier life. became.
“Whether it’s a better work-life balance or a $7 cup of coffee a day, it’s a race to find happiness,” Empower said.
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Which age group values their time the most?
Data shows that how much people value their time varies by age.
- Millennials (born between 1981 and 1996) value their time the most, saying an hour is worth $328.84, and a quarter of them think it’s worth more than $500. This is the highest percentage of any generation. Only 6% of baby boomers charge more than $500 per hour.
- Gen Z (born between 1997 and 2012) said it costs $266.92 for one hour of use.
- Generation X (born between 1965 and 1980) said their time was worth $215.90 per hour.
- Baby boomers (1946-1964) said that one hour of their time was worth $137.19.
Millennials value their time more because of a sense of lost time, such as the 2008 financial crisis that brought many into the workforce, and the subsequent upheaval caused by the pandemic. Record high levels of student debt, as well as the highest inflation and mortgage rates in decades, are also deterring millennials from buying homes, Empower said. It is said that there is
How much would you sacrifice to get an hour of your time back?
Time is so valuable that 26% of Americans say they would be willing to take a 15% pay cut to have more free time. Millennials (41%) were most likely to want to do this, Empower said.
Americans would also pay someone to do something to get their time back.
- According to the survey, 36% of people would rather pay more to have an item delivered than drive 10 minutes to pick it up.
- More than 2 in 5 Americans say outsourcing household chores will improve their work-life balance. One-third of Gen Z would pay up to $5,000 a year to save time by skipping tasks like cleaning and yard work, and 36% of Millennials would pay someone to do office chores or make meals for them. He plans to pay as much as $10,000.
- Americans don’t like managing money. More than one-third of American girlfriends procrastinate when it comes to money matters, such as paying bills, and 26% prefer to have someone else manage their long-term finances, investments, and savings. They said they would spend $5,000 a year.
What makes people feel wealthy?
For most Americans, wealth is about more than just a bank account. According to the survey, 63% of respondents said they would feel wealthy if they had enough time to spend with family and friends.
Nearly a third of people are willing to take on debt if it gives them free time and memorable experiences.
According to the survey, nearly 40% of Americans say saving time is more important than saving money, and that number rises to 52% for Millennials.
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What about saving for retirement?
The survey found that nearly half of Americans feel like they are running out of time to save for retirement, even though 44% say they started saving money early enough.
According to the survey, 43% said they wish they had gone back in time and started saving sooner, while nearly half would rather live out a long retirement with less money than retire with more money later in life. I said yes.
But Americans generally remain “optimistic” and “people may be further along than they think,” the survey said.
The average 401(k) balance is $291,810, but for people in their 50s as they approach retirement age, that balance jumps to $580,259, according to data from Empower Personal Dashboard.
Medora Lee is USA TODAY’s money, markets and personal finance reporter. Please contact us at mjlee@usatoday.com. Subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
