Understanding Time Poverty and Its Impact on Finances
Harvey Mackay, an American entrepreneur, famously stated: “Time is free, but it’s priceless. You can’t own it, but you can use it. You can’t keep it, but you can spend it. Once you’ve lost it, you can never get it back.” So, does the lack of time impoverish us?
Our economic system is built on the intricate relationship between time and money. The labor market operates under the assumption that, in exchange for our time, we will receive money. However, not everyone’s time holds the same value, nor do all individuals have equal amounts of time available, as noted by the blog of the Nantik Lum Foundation, a specialist in microfinance and entrepreneurship.
The Concept of Time Poverty
This leads us to time poverty, which extends beyond the traditional measurement of income. Margarita Vega, a researcher at the Center for Time Use Research at University College London, explains that this indicator offers a more comprehensive dimension.
Through the use of time, we can assess the hours people dedicate to paid work, unpaid work, and personal care. “This information allows us to establish a line of time poverty similar to the one calculated for income. Those below this line will be considered time-poor,” she adds.
According to the expert, the effect of time poverty on individuals is multifaceted. However, focusing on its capacity to generate wealth, a time-poor individual cannot pursue training courses to enhance their skills, thus reducing their chances of upward mobility and potentially earning a better salary.
Economic Impact of Time Poverty
Melhina Magaña, founder of Daucon, agrees that time poverty has a direct economic impact. “To be more competitive and productive, I need time to invest in new skills, languages, tools that will make me more productive and competitive.”
Time poverty disproportionately affects women. Women dedicate up to three times more time than men to unpaid care work. This imbalance limits their economic autonomy, well-being, and social participation, according to UN Women.
“The value of unpaid care work and domestic work represents between 10% and 39% of the Gross Domestic Product (GDP); it may weigh more in a country’s economy than manufacturing, trade, or transportation,” UN Women adds. In this context, time poverty becomes more severe for women since they often shoulder a greater burden of care and domestic responsibilities.
For Melhina Magaña, without time, there is no income. Without income, there is no progress. Without progress, there are no options or choices. “Therefore, I find myself in a situation of economic dependence, subordination.”
She further explains that there is significant economic violence against women; caregiving work remains unmonetized. “Money is a crucial resource for women to live autonomously, dignified, healthy, and secure,” she says.
For Magaña, it’s like an invisible tax that creates a downward spiral. “There’s also a multiplicative effect on children and daughters; they can get trapped.”
Addressing Time Poverty
Melhina Magaña suggests ending time poverty by becoming “masters of boundaries and assertiveness.” This means taking responsibility for deciding when to say yes and no.
“This applies whether you’re a home-based worker with your family or team. Boundaries are the source of high performance because it involves knowing when to set limits not just for others but also for yourself,” she explains.
Time management is a way to eliminate time poverty. “What can you do differently? What can you eliminate? Which activities can you simplify?” she recommends.
Reducing Working Hours
Sara Moreno Colom, a Sociology professor at the Autonomous University of Barcelona, suggests that a new time organization should consider reducing working hours.
UN Women’s Recommendations
Finally, UN Women states that to accelerate progress in women’s economic empowerment, urgent policies are needed that provide services, social protections, and basic infrastructure promoting the distribution of care and domestic work between women and men. These policies should also create more paid jobs in the care economy.
