As global central banks raised interest rates to tame inflation,
home prices have cooled relative to the start of the hiking cycle. However, despite the
sensitivity of the residential market to higher policy rates, prices are
still above historical averages. Home prices in advanced economies,
including most European Union countries, as well as Africa and the Middle
East are 10 percent to 25 percent higher than pre-pandemic levels.
Rising interest rates have passed swiftly to residential mortgage markets,
impeding affordability for current and prospective home buyers.
Additionally, scarce home supply is limiting purchases in some regions. In
all, housing affordability is more stretched amid still-elevated home
prices and higher interest rates.
In the first half of 2023, mortgage rates in advanced economies climbed by
more than 2 percentage points compared to the previous year. During this
period, countries like Australia, Canada and New Zealand witnessed
substantial declines in real house prices, likely due to a high share of
adjustable-rate mortgages and home prices that have been stretched since
before the pandemic. Comparatively, home prices have fallen more than 15
percent in some advanced economies while the drop in emerging economies was
less significant. But, on net, real house prices will need to keep cooling
from the 2021 and 2022 highs to reach pre-pandemic levels.
Higher borrowing costs are likely to see the largest impact on household
debt service ratios—a measure of borrowers’ loan repayment ability—in
countries where housing markets remain overvalued and average lifespans for
mortgage loans are shorter, according to our latest
Global Financial Stability Report.
Approvals and repayment
For instance, for some advanced economies such as Norway, Sweden, Denmark,
and the Netherlands with pre-existing double-digit households’
debt service ratios, borrowers’ debt servicing costs could increase by up to 1.8 percentage
points given the surge in interest rates. That would have consequences for
loan approvals and borrower repayment capabilities. But borrowers are also
less indebted, and underwriting standards have been strengthened since the
global financial crisis, tempering the risk of a surge in loan defaults.
This may have also limited instances of forced selling or foreclosures of
homes, helping to support home prices.
In the United States, the Federal Reserve’s interest rate hikes brought big
changes to the mortgage loan market, with the average rate on a 30-year
fixed mortgage recently reaching a two-decade high of 7.8 percent. For
prospective buyers, entry costs are putting homeownership further out of
reach as the required down payments have also become a prohibitive factor
because savings have shrunk since the pandemic.
Existing homeowners, deterred from purchasing new properties due to larger
monthly mortgage payments, stay put causing a reduction in supply of
existing homes. This phenomenon, known as “lock-in” effect, is particularly
evident in the United States, where long-tenured fixed-rate mortgages are
most popular. With average 30-year mortgage rates currently at 6.6 percent,
around 3 percentage points above pandemic lows, mortgage originations
remain 18 percent below last year’s levels while refinancing applications
increased 8.5 percent over the year as mortgage rates continued to ease.
Rates and refinancing
The 30-year fixed-rate mortgages accounted for 90 percent of new US home
loans at the end of last year, according to ICE Mortgage Technology. Almost
two-fifths of all US mortgages were originated in 2020 or 2021, ICE data show,
as the low interest rates during the pandemic allowed many Americans to
refinance their home loans.
Higher interest rates also raise rental costs. Many people prefer to rent
instead of buying given median house prices have been slow to adjust. In
this context, the combination of higher rates and still-scarce housing
supply creates a vicious circle that complicates central banks’ fight
against inflation. US monthly home prices continued to rise in October
compared with a year ago, with shelter contributing to one-third of the
change of consumer prices in November.
mortgage rates will continue to adjust, and pent-up housing demand could be
unleashed. A sudden increase, as the result of rapid rate cuts, could
offset any improvements in housing supply, causing prices to rebound.
Some Americans who are high earners, but not rich yet are opting for non-traditional mortgages.
Interest-only mortgages offer lower monthly payments, at least initially, but can be risky.
They’re best suited for buyers of higher-end property who invest their money elsewhere.
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With home prices and mortgage rates sky high, potential homeowners — even those with deep pockets — are looking for ways to ease the cost burden.
Some Americans who are high earners, but not rich yet, known as HENRYs, are opting for unusual interest-only mortgages that boost affordability, at least in the short-term. These loans allow the borrower to pay just interest and none of the principal for a certain number of years. The loans are generally reserved for more affluent buyers of higher-end property who can afford a sizeable down payment and have sufficient money saved.
There are some attractive benefits of this kind of loan. They offer lower monthly payments at first, which allow borrowers to invest the money they would otherwise spend to pay off their house on other, higher-return investments. They also allow borrowers whose incomes are expected to rise in the future to buy more expensive homes than they otherwise would be able to afford.
There are also higher risks than a conventional mortgage. Borrowers won’t gain equity in their home, beyond the down payment they made. They’re on the hook for potentially higher mortgage payments in the future, and if their home value declines, they could lose the equity they have or the ability to refinance. Some interest-only loans require borrowers to pay off the entirety of the principal once the interest-only period ends.
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When Sam, whose last name is known to Business Insider, and his wife were looking to buy a home in Brooklyn in the spring of 2022, the homes they liked largely exceeded their budget, which was between $2–$2.5 million.
But one day they got an unexpected opportunity. Their neighbors directly across the street from their rental apartment in Carroll Gardens were about to put their three-bedroom brownstone on the market. The house was exactly what they were looking for, except it was priced at $3.1 million. But their neighbors offered to sell it to them before putting it on the market. Without broker’s fees, the home would cost about $2.8 million.
Sam, a self-employed marketing consultant, was initially concerned the house was just too risky and expensive of a purchase. The future of New York City real estate was still somewhat unclear as many who fled the city when the pandemic hit were slow to return.
But when First Republic bank offered him and his wife a 40-year interest-only loan, they sprung for it. They paid a 20% down payment and locked in a low mortgage rate of between 2.6 and 2.7% for the first 10 years of the loan, and a guarantee that their rate would double at that point.
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Their monthly, interest-only mortgage payment is just under $5,000 per month, which is just a few hundred dollars more than they were previously spending on rent.
Eighteen months later, Sam and his wife are still happy with their decision. They can easily afford their payments now, are saving up for the future rate-hike, and Brooklyn real estate is booming. The couple thinks they’ll be in the house for fifteen or twenty years, at which point their kids will be through high school and they might downsize or leave the city.
“These days, it seems like a pretty safe bet that in 10 to 20 years from now, the value will be higher,” he said. “I don’t know if it’s going to skyrocket or be a little bit higher, but we don’t think it’ll go down.”
A deal for ‘sophisticated investors’
Sam and his wife are the target demographic suitable for an interest-only loan. But these mortgages can be very risky if a borrower doesn’t have sufficient funds to handle higher payments down the line, or the property loses value, in which caseborrowers have to be prepared for potentially higher interest rates after the initial stage of their loan is over.
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These loans are a “niche product” that should be reserved for high-end real estate purchases by borrowers who are “sophisticated investors,” said Chen Zhao, the head of economic research at Redfin. Since you’re not building equity in your home under an interest-only mortgage, those who take out these loans should be investing their money in other ways that are likely to give them a better return, Zhao said.
The proliferation of interest-only mortgages could also evenhurt buyers who can’t afford to take advantage of them. Because they allow affluentborrowers to buy more expensive homes, they can help inflate prices in already high-cost markets. Claes Bäckman, a researcher at the Leibniz Institute for Financial Research SAFE in Germany who has studied the introduction of interest-only mortgages in Denmark, says the loan type doesn’t significantly boost affordability or allow more young people to become homeowners.
“I think it will certainly help the buyers who can afford to get one of these, but if they are competing against other buyers who can also get an interest-only mortgage, they might not get much of a benefit in terms of affordability,” Bäckman said.
A history of predatory lending
Interest-only mortgages were much more common, especially for less-affluent borrowers, in the years leading up to the 2008 financial crisis. At the time, many homebuyers were offered risky loans they couldn’t afford, which ultimately led to the subprime mortgage crisis.
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After the financial crisis, the federal government passed regulations on risky mortgages, making interest-only loans much less common. But with home prices soaring and interest rates stubbornly high, buyers are again opting for riskier loans, including interest-only.
Hillary, whose last name is known to Business Insider but requested partial anonymity to protect her husband’s business, and her husband were victims of these predatory lending practices. In 2007, the couple took out an interest-only mortgage to buy a $585,000 home in San Diego. The house was down the street from Hillary’s motherand the couple wanted it to be their forever home, so they splurged. While their real estate agent warned them against taking out such a large, high-interest loan, the bank encouraged them to take on two loans without any down payment — one at 8% and the other at 9% interest.
When the financial crisis hit, Hillary’s husband, a commission-based financial advisor, saw his income plummet. Hillary, a self-employed photographer, also took a hit. Then the couple had a new baby. They were soon forced to take out loans to make their $4,000 monthly mortgage payments. When they asked their bank to modify the terms of the loan, it refused. The couple declared bankruptcy and ultimately sold the house in 2012 for just $365,000.
Looking back now, Hillary thinks she and her now ex-husband were too optimistic about their future income when they bought the house, but that her bank was reckless.
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“They clearly should never have given us a loan,” Hillary said. “But when you’re young and it’s the, quote, perfect home for you, you know, what are you supposed to do?”
She’s concerned that some buyers are now falling into a similar trap of believing they’ll be able to refinance their loans later for a better deal.
In the broader world of real estate, interest-only mortgages could be contributing to another crisis. These days, interest-only mortgages are increasingly popular among commercial real estate buyers. They made up 88% of new commercial mortgage-backed issuances in 2021 — an increase from 51% in 2013, The Wall Street Journal reported based on data from the company Trepp.
And it’s not going well for borrowers. Commercial mortgage defaults are on the rise. With interest rates so high, many office building owners aren’t able to secure new loans they can afford. In May 2023, Fitch Ratings estimated that 35% of pooled securitized commercial mortgages due between April and December of this year would be ineligible for refinancing.
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Consumer protection advocates are are concerned that homebuyers are increasingly opting for non-traditional mortgages that carry higher risks. Some borrowers are attracted to interest-only loans by the lower monthly costs, but aren’t prepared for worst-case scenarios, and to ultimately pay more to own their home.
“It’s a question of, do people understand that this is a product that’s going to be more expensive for them long term, or are they just enticed by the lower monthly payments?” Bäckman said.
Among the various decorating trends; like maximalism, mid-century modern and bohemian, one stands out and even influences others. Scandinavian decor, as seen at your local IKEA, is characterized by a combination of simplicity, functionality and a strong emphasis on natural elements. With its growing popularity and increasing influence on minimalism, Scandinavian decor is a worthwhile deep dive for those design enthusiasts in search of a crisp and clean functional space.
Popular for its practicality and functionality, this Nordic-design style curates calm yet creative spaces perfect for entertaining, working and living. When navigating the design world, whether you’re an aficionado or a first-time renter, everything you ever wanted to know can be found within Scandinavian decor, without an airline ticket or an interior designer.
What is the Scandinavian decor style?
This interior design style originated in the Nordic countries of Denmark, Norway, Sweden and Finland. The Industrial Revolution led to significant changes in society which saw a transition from handmade goods to mass production. In response to this, Scandinavian designers began to emphasize quality craftsmanship and simple, functional designs.
The style gained international recognition and popularity in the mid-20th century, specifically the 1950s and 1960s. This period is often referred to as the “Golden Age” of Scandinavian design which emerged alongside the mid-century modern movement.
Scandinavian modern style, during this time, prioritized affordable yet sleek furnishings and interiors through clean lines, functional furniture and a neutral color palette. Influential designers like Arne Jacobsen, Greta Grossman and Hans J. Wegner created iconic pieces that are still celebrated today.
Defining features of Scandinavian decor
While it’s easy to envision what your last trip to IKEA was like, Scandinavian interiors are much more than simple furnishings and clean designs.
Emphasis on minimalism: Minimalism and Scandinavian decor walk hand-in-hand in the design world. The minimalist philosophy of “less is more” lends itself well to the simple, functional and intentional pieces found in Scandinavian decorated spaces.
Neutral and light color palette: A predominantly white or light color scheme is a hallmark of Scandinavian decor. White walls and ceilings are often complemented by soft, neutral colors like light gray, beige or pale pastels in furnishings. This light color palette helps maximize the natural light in the space, especially during the long, dark winters in Scandinavia.
Natural material usage: Scandinavian decor emphasizes the natural beauty found in nature and natural materials. Materials like wood, stone and leather are commonly used for furniture and flooring. These materials add texture and visual interest to Scandinavian spaces.
Functional furniture and lighting: As IKEA has shown, Scandinavian design is about dual functionality with style. Furniture that serves a dual purpose of practicality and flair.
Focus on sustainability: Nordic countries have a strong focus on sustainability, which carries over into their design choices. Think of eco-friendly materials that are made of reusable materials like recycled wood.
Bringing Scandinavian style into your home
Finding the perfect Nordic-inspired pieces may seem challenging. We’ve compiled some of our favorite pics to get you started on your dive into Scandinavia.
This modern accent chair
Source: Amazon
The unique shape, texture and neutral color of this accent chair make it the perfect addition to your living room. Available in two sizes, this modern furniture piece is sure to fit into a current design scheme while bringing a visual interest and cozy vibe to the space.
This bright linen lamp
Source: Amazon
Scandinavian decor harps on the usage of natural materials. This linen lamp mixes soft linen with sleek natural wood to create a great addition to your bedside table, office desk or bookshelf.
Not to mention, bright light is also encouraged in Scandinavian decor to break apart the monotony of a neutral color palette and brighten up the space. This lamp does just that with the click of a button.
The dining chairs that blend neutrality with texture
Source: Amazon
Dining chairs, while not considered large pieces of furniture, are unique ways to incorporate design styles into your dining room or kitchen area. These modern chairs are unique in the sense that they incorporate the natural texture of leather webbing. These unique chairs are sure to be a conversation starter at your next dinner party.
This functional and stylish coffee table
Source: Amazon
Functional furnishings are a hallmark of Scandinavian spaces. This coffee table with an extra storage level serves as not only a place to hold your morning cup of joe but also a convenient spot to tuck away your favorite books, magazines or remote controls, promoting a clutter-free and organized living area.
This visually interesting wall art set
Source: Amazon
Can you count all of the clean lines created in this wall art set? The lines are truly endless, earning it the stamp of Scandinavian decor approval. The black and white geometric patterns within this set add some vibrancy to the neutral and modern space, making it a fantastic addition to your wall space.
Your sleek Scandinavian space awaits
Combining minimalist with functionality creates an intentional space that feels clean and sleek, which is a great place to start on your journey with design. Scandinavian interior design not only fosters a sense of serenity but also encourages an appreciation for the beauty of simplicity. Embrace the Scandinavian decor ideas to transform your living space into a sanctuary of both aesthetics and purpose.
Still looking for that perfect space to curate your Nordic design dream? Find the perfect place in one of our available apartments for rent.
Wesley is a Charlotte-based writer with a degree in Mass Communication from the University of South Carolina. Her background includes 6 years in non-profit communication and 4 years in editorial writing. She’s passionate about traveling, volunteering, cooking and drinking her morning iced coffee. When she’s not writing, you can find her relaxing with family or exploring Charlotte with her friends.
Elliot Hoyte hosts our first 30 Under 30 Honoree interview of 2023 with Kelly Carlson. Kelly has seen massive success in Chicago’s competitive real estate markets since starting her career. On today’s podcast, she discusses her strategy for focusing on first-time home buyers and shares how she gets deals to the finish line. Kelly and Elliot also offer tips for new real estate agents and talk about the value of mentorship early in an agent’s career.
Listen to today’s show and learn:
Chicago’s 30 Under 30 honorees [2:17]
NAR’s 30 Under 30 [3:25]
Kelly Carlson’s application to NAR’s 30 Under 30 [4:01]
Giving back to the community [5:46]
From engineering to a career in real estate [7:47]
Chicago real estate markets [11:56]
Where Kelly got her first few deals [16:22]
Adding value to potential clients [20:10]
Working with first-time home buyers [22:52]
Setting expectations with buyer clients [26:10]
The Danish concept of hygge and how it applies to real estate [27:14]
The differences between neighborhoods in Chicago [29:30]
Covering different neighborhoods in a diverse market [31:45]
Kelly’s sales as a new real estate agent [32:33]
The value of a quality brokerage and mentorship [35:50]
Kelly’s advice for new real estate agents [42:00]
Where to find and follow Kelly Carlson [44:04]
Kelly Carlson
Creating a home is such an important aspect of life. Kelly thinks back to some of her favorite memories, and they all tie back to where she was living at the time – her childhood home on Prospect Avenue, her studio apartment in the Gold Coast, or moving in with her husband to their condo. Kelly’s passion for helping others to find their perfect home is what drives her to advocate for them during every step of the home buying and selling process.
Kelly brings a unique background to her residential clients. After graduating from the University of Illinois with an engineering degree, Kelly worked for a Big Four firm as an associate in a real estate and construction tax consulting group. She loved client services but realized she wanted to work more directly on the development side. In 2018, Kelly left to join a boutique consulting firm where she was a project manager responsible for design and construction projects for healthcare and large not-for-profit institutions. There, Kelly developed a strong understanding of the design and construction process. Her experience has taught her the importance of working hard, putting clients first, and always remembering the bigger picture.
Kelly is passionate about cultivating meaningful relationships and helping others, and it is something she strives for in her everyday encounters. Kelly joined Engel & Völkers Chicago because it is a community of professional advisors who share a similar mindset. The company culture is genuine and collaborative, not competitive or “salesy.” Moreover, she was offered an opportunity to be mentored by a top broker, an experience that has helped her jumpstart her career in residential sales.
Kelly loves that Engel & Völkers is a global brand. She studied abroad in Stockholm, Sweden, and Copenhagen, Denmark. It was there that she became enamored with the Scandinavian concept of Hygge, which embodies a feeling of contentment that comes from being around good company in a cozy setting, such as home! Kelly’s favorite place in the world (besides home) is South Africa – specifically, Babylonstoren. She even had the opportunity to visit their Engel & Völkers Shop in Cape Town during that trip!
From a young age, Kelly was drawn to the hustle and bustle of downtown, as well as the city’s beautiful architecture. She grew up in Clarendon Hills, a short train ride from the city. The time Kelly spent downtown as a child sparked her love for the built world, and real estate in particular. Since graduating from college, Kelly has lived in Lincoln Park, the Gold Coast, and now River North, a perfect location to take advantage of all that city living has to offer – art, music, dining, and world-class architecture. One of her favorite things to do is to turn on a podcast and explore the city on foot, marveling at the historic buildings.
When Kelly is not working, she is a member of the Associate’s Board for Sarah’s Circle, a local nonprofit with a mission of serving women who are experiencing homelessness or in need of a safe space. She also enjoys a good sweat, whether that’s running, cycling, or yoga. In fact, most of her client events take place at boutique fitness studios. On most weekends, Kelly can be found walking the Riverwalk at Montgomery Ward Park with her husband, Brian, their dog Pax, and a good cup of coffee.
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It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email.
Seattle’s museums are a vibrant reflection of the region’s diverse influences and the city’s captivating history, showcasing why the Emerald City is such a great place to live. From the city’s musical legacy and the pioneering aviation industry to the profound impact of Asian-American immigration and the vibrant Indigenous cultures, these museums offer insights into Seattle’s history and evolution.
Whether you’re looking to rent an apartment in Seattle, purchase a home in the area, or just want to know what it’s like living in Seattle, join us as Redfin unveils 11 museums in Seattle that provide a glimpse into the city’s rich cultural tapestry. Let’s get started.
1. Seattle Art Museum (SAM)
The Seattle Art Museum (SAM) is a renowned cultural institution nestled in the heart of downtown Seattle. The museum’s extensive collection spans various artistic disciplines, including contemporary, modern, indigenous, and Asian art. SAM houses more than 25,000 artworks, featuring renowned artists like Georgia O’Keeffe, Pablo Picasso, and Mark Rothko, among others. The museum’s permanent collection is complemented by a rotating series of exhibitions that showcase diverse artistic expressions and thought-provoking themes. Beyond its impressive collection, SAM offers engaging educational programs, lectures, and workshops that encourage visitors to delve deeper into the world of art. The museum’s iconic building, designed by architect Robert Venturi, is a work of art in itself and adds to the vibrant cultural landscape of Seattle.
2. The Seattle Asian Art Museum
The Seattle Asian Art Museum, nestled in Seattle’s lush Volunteer Park near the Capitol Hill neighborhood, is a cultural gem that showcases the rich and diverse artistic traditions of Asia. The museum’s collection spans over 7,000 artworks from various Asian cultures, including China, Japan, Korea, India, and Southeast Asia. With its stunning collection of artworks spanning thousands of years, the museum offers a captivating journey through the region’s vibrant cultures and histories. From ancient sculptures to contemporary paintings, visitors can immerse themselves in the beauty and intricacy of Asian art.
3. Museum of Pop Culture (MoPOP)
The Museum of Pop Culture (MoPOP) is an extraordinary tribute to popular culture and a must-visit for music, film, and gaming enthusiasts. Designed by renowned architect Frank Gehry, MoPOP’s striking exterior mirrors the creative wonders within. The museum’s immersive exhibits celebrate iconic musicians, from Jimi Hendrix to Nirvana, while its interactive installations invite visitors to explore the realms of science fiction, fantasy, and gaming.MoPOP’s engaging displays, including memorabilia, artifacts, and hands-on activities, ignite the imagination and offer a journey through the landscapes of popular culture.
4. Nordic Museum
The Nordic Museum, nestled in Ballard, one of the many neighborhoods in Seattle, is a fascinating institution that celebrates the rich cultural heritage of the Nordic countries. The museum offers a journey through the history, traditions, and contributions of the Nordic people. With engaging exhibits that delve into Viking sagas, contemporary design, and cultural practices, visitors can explore the diverse facets of Nordic culture. The museum’s immersive displays, interactive elements, and educational programs provide a unique opportunity to connect with the vibrant traditions and stories of Denmark, Finland, Iceland, Norway, and Sweden.
5. Burke Museum of Natural History and Culture
The Burke Museum of Natural History and Culture in Seattle is a captivating institution that explores the wonders of natural history and the diverse cultures that have shaped the Pacific Northwest. Located on the University of Washington campus, the museum houses an impressive collection of artifacts and specimens that showcase the region’s rich biodiversity and cultural heritage. From paleontology and anthropology to exhibits highlighting the traditions of indigenous tribes, visitors can embark on a fascinating journey through time and discover the interconnectedness of nature and human culture.
6. The Museum of Flight
The Museum of Flight in Seattle is the perfect destination for aviation enthusiasts and history buffs alike. Home to a remarkable collection of historic aircraft and artifacts, the museum chronicles the evolution of flight and offers a fascinating glimpse into the world of aerospace.
From iconic planes to space exploration exhibits, visitors can explore the triumphs and challenges of aviation history. The museum’s interactive displays, flight simulators, and educational programs provide an immersive experience that caters to all ages.
7. Living Computers: Museum + Labs
The Living Computers: Museum + Labs is an ideal spot for technology enthusiasts and one of the most unique things to do in Seattle. This unique museum offers a hands-on exploration of computing technology and its evolution over time. Visitors can interact with vintage computers, experience virtual reality, and delve into the world of artificial intelligence. The museum’s exhibits and labs provide an immersive experience that engages visitors of all ages. From coding workshops to robotics demonstrations, Living Computers fosters a deeper understanding of the impact and potential of technology in our lives. Whether you’re a tech geek or simply curious about the digital world, this museum offers an exhilarating and interactive journey into the realm of computing.
8. The Seattle Children’s Museum
The Seattle Children’s Museum is an interactive space that offers a world of wonder for children and families. The museum is designed to spark creativity, curiosity, and learning in young minds. With hands-on exhibits and play spaces, children can engage in imaginative exploration across various themes, including science, arts, and culture. The museum provides a safe and stimulating environment where children can learn through play, fostering their cognitive, social, and emotional development. From the “Tot Spot” for toddlers to engaging activities for older children.
9. Chihuly Garden and Glass
Chihuly Garden and Glass is a celebration of the breathtaking glass artwork created by the renowned artist Dale Chihuly and a must-see on your Seattle bucket list. Nestled in the Seattle Center, this museum captivates visitors with its vibrant and intricate sculptures. The indoor galleries showcase Chihuly’s mesmerizing glass creations, while the outdoor garden installations harmoniously blend with lush greenery. The interplay of light, color, and form transports visitors into a whimsical world of artistic wonder. The experience of Chihuly Garden and Glass is a visual feast that leaves a lasting impression, highlighting the extraordinary talent and mastery of one of the world’s most acclaimed glass artists.
10. Wing Luke Museum of the Asian Pacific American Experience
The Wing Luke Museum of the Asian Pacific American Experience is a cultural gem that showcases the rich heritage, stories, and contributions of Asian Pacific Americans and makes a fantastic rainy day activity in Seattle. Located in the vibrant Chinatown-International District, the museum offers thought-provoking exhibits that explore the diverse cultures and histories of Asian Pacific American communities.
11. Klondike Gold Rush National Historical Park
The Klondike Gold Rush National Historical Park gives a glimpse back in time to the late 1800s gold rush era. Located in the historic Pioneer Square neighborhood, this park commemorates the dramatic events and the indomitable spirit of those seeking fortune in the Klondike region. Visitors can explore exhibits showcasing artifacts, stories, and the challenges faced by prospectors during this transformative period in Seattle’s history. Guided tours and educational programs provide valuable insights into the city’s role as a gateway to the goldfields.
Museums in Seattle: The bottom line
Seattle’s museum scene is a testament to the city’s vibrant culture, artistic expression, and rich history. Whether you’re an art enthusiast, a history buff, or a tech geek, there’s a museum in Seattle that will captivate your imagination – all the more reason to move to Seattle.
This guest post from Shelley Turner is part of the “reader stories” feature at Get Rich Slowly. Some stories contain general advice; others are examples of how a GRS reader achieved financial success — or failure. These stories feature folks from all levels of financial maturity and with all sorts of incomes.
They’re coming! Like it or not, the holidays — and all the stress of buying the Perfect Gift — are just around the corner. I actually like brainstorming gift ideas, and have been told I’m pretty good at it. Today I’ll share my secrets with you.
The best gifts are appropriate for the recipient, yet don’t cost a small fortune. You want your gift to say “I know what you like”, not “I didn’t have a clue of what to get you for a gift for but here it is anyway”. I once received a leopard-hair belt. Anybody who knows me, or has seen how I dress, understands that there’s never been (nor ever will be) a time that I’d wear a leopard-hair belt. A gift like that screams “I just bought you something because I had to”.
Gift-giving ground rules Before you buy, take a few minutes to think about what your recipient has in her house or on her desk, what she spends her time doing, what she likes to talk about, where she likes to eat, and even what she keeps in her refrigerator. Even if you don’t know her that well, this exercise will help you get some ideas of what the recipient likes.
I’m not a collector, so I prefer practical and useful gifts. However, if your gift recipient is a collector, that’s a perfect opportunity. Even if his collection is filled with expensive items, you can often find a small token within that collection that you could give him. The trick to buying a great gift for somebody, no matter what the occasion, is to buy what your recipient would enjoy — not what you’d enjoy.
Often, a consumable gift that provides momentary pleasure and then disappears is best, especially around the holidays when people usually get many gifts. Consumables can be given, enjoyed, and remembered without becoming Stuff.
My husband’s 90-year-old grandmother is a perfect example. What can you give a 90-year-old woman who already has everything she wants and needs? Not much. However, I know she really enjoys a good cup of coffee. And I found some European butter cookies and a some jars of preserves made in her native Denmark. I give her this same gift every year. She tells me she waits eagerly for our gift because not only does she enjoy consuming it during the winter, but because it’s a small reminder of her home country.
Inexpensive gift ideas No matter which gift you choose, if it’s something your recipient uses over and over, you can give a great gift without spending too much. Here are some of my favorite inexpensive gift ideas. These have all been well-received and cost less than $20. You can tailor the gift idea to fit your budget. Some of these can be used as hostess gifts for holiday parties you may be attending.
Personalized note cards
A book by her favorite author
Monogrammed wine stoppers
Travel journal
Engraved metal bookmark
Monogrammed soap bars
Bread basket with quick bread or muffin mix inside
Dog or cat breed-specific items — calendars, notepads, keychains, etc. of their pet
Cookbook (specific subjects like fondue, vegetarian, appetizers, etc or you could get a book representing their hometown like the Chesapeake Bay, etc.)
Personalized insulated tote-style lunch bag (put his favorite snack inside)
Sports team items — pick her favorite team mug, hat, t-shirt, scarf, etc. (fill a mug with her favorite hard candy)
Gourmet chocolate bars tied with ribbon or raffia
Favorite bubble bath & bath pillow
Wallet with gift cards or cash inside
Amaryllis or Paperwhite bulb package
Old-fashioned jar filled with favorite candy or snack
Hand-made soap with an interesting soap dish
Handmade crocheted or knitted scarf or hat
BBQ sauces, hot sauces, grilling rubs, etc (some have funny labels)
Ice cream dish with favorite topping
Decorative candy bowl with favorite candy
Ornament representing current hobby
Charm to add to an existing charm bracelet
T-shirt from favorite restaurant
Crabtree & Evelyn hand therapy (super-rich hand cream)
Nice colored pencils and/or sketch notebook for artists
Small decorative bowl and package of dip mix
Hand towels with initials embroidered (especially if newly married)
Here are a few more ideas with a bit of explanation:
Magazine subscription (hundreds of subjects to choose from — and you can give crossword puzzle and comic book subscriptions too). Buy the current issue and put a note on it that you got him a one-year subscription.
Lolita glasses are painted wine, beer, or margarita glass that have themes painted on them based on hobbies. There’s a recipe painted on the bottom of each glass too.
Year of Napkins! This requires advance planning, but makes a unique gift for a very reasonable price. For each holiday throughout the year (plus Happy Birthday), pick up one pack of luncheon-sized napkins. When you’ve collected all the holidays, package them in order of the holidays in small CD crates, baskets, etc. Usually you can find the napkins in the clearance section right after the holiday. Decide how many of these you want to put together in advance so you can buy as many as you need during each holiday.
Remember that you can also go in with others to purchase bigger gifts, such as theater tickets, cooking classes, and other “experiences”. If you’re very organized, you can shop all year and pick up interesting gifts along the way. My sister-in-law has a birthday in January, but I often find stuff she’ll love in the summer, so I buy it and keep it until her birthday.
Check the clearance racks all year to get even better deals. Unless you really enjoy going shopping the week before Christmas, you may find that buying gifts ahead of time will not only save you money, but also make the holiday season a little more relaxing, as well.
Reminder: Another way to save money on gifts is to make them yourself. Here’s a list of 34 great homemade Christmas gifts almost anyone can put together. And over at The Simple Dollar, Trent has been documenting his own quest for family-produced Christmas presents.
A note on packaging When packaging your gifts, you’re not stuck using a gift bag or plain wrapping paper unless you want to. Tulle (that material used to tie up rice/birdseed to throw at weddings) is great for wrapping unusually-shaped items, such as the bowls & dip mixes, candy bowls & jars, ice cream dishes, bottles of hot sauces, soap, etc. It’s really inexpensive to purchase by the yard, comes in many colors, and your recipient can see what you gave her without unwrapping it. Tulle is especially good for hostess gifts so they don’t have to open them upon receipt.
Some other tips:
Magazines roll up perfectly in those tall wine bottle bags.
Chinese-food boxes and small tin buckets are inexpensive and fun to use.
Bread baskets work nicely to hold all kinds of items and they can reuse the basket later.
When packaging your gifts, use your imagination!
Gift giving can be fun — if you allow yourself to be creative and take a few minutes to think about your recipient. The bottom line: If he’ll enjoy it, it’s a great gift for him!
One important distinction between advanced award travelers and those newer to the world of points and miles is how each group searches for award space.
Those with experience earning and burning points and miles will carefully study various partner award charts, looking at where to transfer their flexible points and what sweet spots they can utilize. Meanwhile, beginners may log into their United MileagePlus or American Airlines AAdvantage account, search for the destination they want to visit and book the first award they see regardless of price or convenience.
While anyone can accrue a good amount of points by earning welcome bonuses on top travel credit cards, this difference in redemption strategies is huge. Using the right partner program to book your award could save you as much as 50%, depending on the carrier and route.
With major programs switching to dynamic pricing and 500,000 miles for one-way business-class flights to Europe becoming increasingly common, it’s more important than ever to know the best ways to maximize your points and miles.
Today, we’ll look at some of the best value sweet spot award redemptions. While this list is not exhaustive, if you plan to travel to one of these destinations and have points at your disposal, these are surefire ways to get an excellent redemption value every time. If you’re new to the world of points and miles and any of these destinations interest you, you can use this as a road map to instant success.
ANA premium cabins to Japan with Virgin Atlantic points
Virgin Atlantic’s partner award chart for ANA is one of the best sweet spots out there. While availability can be hard to come by, and the first-class rates recently increased, this remains an incredible use of Virgin points.
The sweet spot
For this sweet spot, it’s important to know that the prices differ if you’re flying from the West Coast versus the central and eastern U.S. You can also book one-way flights for half the round-trip prices noted below.
ANA’s new business class is called “The Room,” and its new first class is referred to as “The Suite.” Both are excellent products that we are big fans of here at TPG — and flying in either means you can visit the always-popular Japan.
You’re allowed an open-jaw routing as long as you stay within the same region of the U.S. (West or Central/East). This means you can mix and match airports wherever you find award space.
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For example, flying from Washington, D.C.’s Dulles International Airport (IAD) to Tokyo’s Narita International Airport (NRT) and then returning from Tokyo’s Haneda Airport (HND) to New York’s John F. Kennedy International Airport (JFK) would be a valid itinerary, costing only 95,000 points in business or 170,000 points in first class.
Availability can be scarce — you will have the best luck booking 12 months in advance (as soon as the seats are loaded) or last minute (less than 14 days before departure when unsold seats are often loaded for awards). Your best bet for finding availability is to search for it using the United MileagePlus website and call Virgin’s Flying Club to book.
Related: Feels like first class: Flying ANA The Room business class from LA-Tokyo
Earning Virgin Atlantic miles
Virgin Atlantic miles are among the easiest to earn. You can transfer points from Chase Ultimate Rewards, American Express Membership Rewards, Citi ThankYou Rewards, Capital One, Bilt Rewards and Marriott Bonvoy to Flying Club. Keep an eye out for transfer bonuses from Amex or Citi that could drop your costs even further.
Related: How to redeem Chase Ultimate Rewards points for maximum value
Iberia business class to Spain with Avios
Iberia Avios can unlock one of the cheapest ways to fly to Europe in business class.
The sweet spot
The key to this sweet spot is to fly a nonstop, Iberia-operated flight of 3,001 to 4,000 miles on off-peak dates (check Iberia’s peak and off-peak calendar). This is because Iberia uses a distance-based award chart for its flights.
Iberia operates several transatlantic flights that fall into the 3,001- to 4,000-mile distance band. As such, you can book Iberia flights between the following city pairs for just 34,000 Avios, plus modest taxes and fees:
Boston Logan International Airport (BOS) to Adolfo Suárez Madrid-Barajas Airport (MAD).
BOS to Josep Tarradellas Barcelona-El Prat Airport (BCN).
JFK to MAD.
JFK to BCN.
IAD to MAD.
While flights from Chicago’s O’Hare International Airport (ORD) to MAD are slightly outside this range, they also price at 34,000 Avios one-way in business class.
Earning Avios
There are three primary ways for U.S.-based travelers to earn Iberia Avios:
Related: 4 versions of Avios: When to use Aer Lingus, Qatar Airways, Iberia and British Airways
Qatar Airways Qsuite business class to the Middle East or Africa with AAdvantage miles
Qatar Airways has won numerous awards for its innovative Qsuite business-class product, regarded as one of the world’s best business-class experiences.
The sweet spot
If you don’t live near a Qatar Airways gateway, you may be able to find an itinerary that allows you to connect domestically in the U.S. for the same cost.
You can search for award availability online, even if you don’t have the necessary miles. Just note that award space may be difficult to come by, so check back regularly if you can’t find flights on your desired route.
Earning AAdvantage miles
There are a few American Airlines cobranded cards you can use to quickly accrue AAdvantage miles.
The information for the CitiBusiness AAdvantage Platinum Select Mastercard and AAdvantage® Aviator® Red World Elite Mastercard® has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
You can also transfer Marriott Bonvoy points to American Airlines AAdvantage at a 3:1 transfer ratio. Additionally, if you pay your rent with Bilt Rewards or spend on the Bilt Mastercard® (see rates and fees), you can transfer your points 1:1 to AAdvantage. Points transfer from Bilt to AAdvantage instantly.
Related: Best uses of American Airlines miles
Cathay Pacific business class to Asia or Africa with Alaska miles
The Alaska Airlines Mileage Plan used to be one of our favorite airline programs, as the program once offered some incredible award flight sweet spots. Sadly, Alaska has removed many of its award deals, but Cathay Pacific is one of the remaining Mileage Plan sweet spots that you should book before it disappears.
The sweet spot
Flying with Cathay Pacific from the West Coast to its Hong Kong International Airport (HKG) hub will cost 30,000 miles each way in economy. If you can find available seats in premium cabins (which is difficult), you’ll pay 50,000 miles per person in business class and 70,000 miles per person in first class.
You can also continue on to several points in Asia, such as various destinations in India and Dubai International Airport (DXB), paying just 50,000 miles per person for a one-way flight in economy. Expect to pay 62,500 miles for a one-way business-class ticket and 70,000 miles for a first-class ticket.
Unfortunately, Cathay Pacific’s premium cabin seats are extremely tough to find. If you find availability, we recommend booking immediately. If you need to cancel your ticket later, Alaska will redeposit the miles and refund the taxes and fees without penalty.
Earning Alaska miles
Alaska miles aren’t the easiest to earn, as they are not linked to any major transferable program. Thankfully, Alaska’s broad list of airline partners means you can earn when flying with many different airlines.
Alaska Airlines also has two cobranded credit cards with Bank of America.
Alaska Airlines Visa® credit card: Get a $100 statement credit, 50,000 bonus miles and Alaska’s Famous Companion Fare from $122 ($99 fare, plus taxes and fees from $23) with this offer. To qualify, make $2,000 or more in purchases within the first 90 days of opening your account.
Alaska Airlines Visa® Business card: Get 50,000 bonus miles, a $100 statement credit and Alaska’s Famous Companion Fare from $122 ($99 fare, plus taxes and fees from $23) with this offer. To qualify, make $3,000 or more in purchases within the first 90 days of opening your account.
Related: Which credit card should you use for Alaska Airlines flights?
Short-haul flights on British Airways with Avios
With dynamic pricing in some programs showing up to 100,000 miles for a single flight in economy, British Airways is a good alternative. The Executive Club program offers low prices on short flights.
The sweet spot
British Airways only charges 4,750 Avios each way for off-peak flights it operates from London to destinations up to 600 miles away. This includes destinations in Ireland, Scotland, Denmark, France, Germany, Austria and Italy. Taxes will set you back just $31 (this can vary depending on current exchange rates), though you also have the option to reduce this to $1 by redeeming 9,250 Avios.
Award flights include full-size cabin baggage and checked baggage.
Earning British Airways Avios
The easiest way to earn a meaningful number of Avios for everyday spending is by applying for the British Airways Visa Signature Card. You’ll earn 75,000 Avios after you spend $5,000 on purchases within the first three months of account opening. TPG values Avios at 1.5 cents each, making the full bonus worth $1,125.
The British Airways Visa Signature has a $95 annual fee and earns 3 Avios per dollar spent on purchases with British Airways, Aer Lingus, Iberia, and Level. Plus, you can earn 2 Avios per dollar spent on hotel accommodations when purchased directly with the hotel. All other purchases earn 1 Avios per dollar spent.
British Airways is also a transfer partner of Capital One, Chase Ultimate Rewards, American Express Membership Rewards, Bilt Rewards and Marriott Bonvoy, making Avios one of the easiest currencies to earn.
Points transfer from Capital One, Chase, Bilt and Amex at a 1:1 ratio (in addition to occasional transfer bonuses of up to 40%), while Marriott Bonvoy points transfer to Avios at a 3:1 ratio. Plus, you’ll get a 5,000-Avios bonus for every 60,000 Marriott points transferred.
Related: 5 reasons why you should care about British Airways Avios
Air France-KLM Flying Blue promo awards
From paid ticket sales to redemption promotions, there are endless opportunities to book travel at a discount. However, few sales are as reliable as the Promo Rewards we see each month from Air France-KLM Flying Blue.
With Flying Blue adopting dynamic pricing with highly variable rates in all classes, this monthly offer is an excellent way to save on award travel.
The sweet spot
These monthly Promo Rewards regularly appear on the Flying Blue website and offer discounts on flights to and from select cities or region pairs. All discounts are only bookable through the end of the month, and there’s a set travel window.
Each month, the destinations, discounts and classes change, so keep an eye out for what is currently available. In the past, we have seen deals like:
39,000 miles in business class from Miami International Airport (MIA) to London’s Heathrow Airport (LHR), flying KLM.
22,500 miles in premium economy class from IAD to Munich Airport (MUC), flying Air France.
11,250 miles in economy from ORD to Stockholm Arlanda Airport (ARN), flying Air France.
Earning Flying Blue miles
Boosting your Flying Blue balance is easy since the program partners with all major transferable points currencies.
You can transfer points at a 1:1 ratio from American Express Membership Rewards, Bilt Rewards, Capital One, Chase Ultimate Rewards and Citi ThankYou Rewards. You can also transfer Marriott points at a 3:1 ratio, with a 5,000-mile bonus for every 60,000 points you transfer.
Based on our tests, Amex, Bilt, Capital One, Chase and Citi transfers should post almost instantly. However, that wasn’t the case with our test transfer from Marriott, which took three days to arrive in our Flying Blue account.
Related: Is KLM premium economy worth it on the 787 Dreamliner?
Domestic United flights with Turkish Airlines’ Miles&Smiles
United’s dynamic pricing means you won’t find a set price for flights booked via the MileagePlus program. However, when there is saver-level inventory (the X fare class for economy or the I fare class for business), Turkish Airlines’ Miles&Smiles becomes one of the best options available.
The sweet spot
For any domestic flight in the U.S., including to or from Hawaii, Turkish requires just 7,500 miles each way in economy. If you’re lucky enough to find domestic first class, those award tickets only cost 12,500 miles each way.
For example, we found a round-trip ticket in economy from San Francisco International Airport (SFO) to Hawaii’s Ellison Onizuka Kona International Airport at Keahole (KOA) that only requires 15,000 Turkish miles plus $11.20 in taxes and fees.
This exact same flight would be 25,800 United miles.
The key to this sweet spot is finding saver-level inventory. You can search for these fares on United.com, though note that award tickets in any fare class other than X for economy and I for business class are not bookable through partner programs.
Earning Turkish miles
Miles&Smiles partners with a trio of programs: Capital One, Citi ThankYou Rewards and Bilt Rewards. You can transfer rewards from any of these programs at a 1:1 ratio, and our tests indicate that transfers should process instantly.
Related: The ultimate guide to Citi ThankYou Rewards
Bottom line
When it comes to making award reservations, you need certain stars to align. A little bit of flexibility is required to make the process run smoothly, and that might mean changing the dates of your trip a bit or opting for a destination with more plentiful award space. If these three things fall into place, you’ll have a solid award flight.
However, there’s a fourth element to the equation: value. If you can score one of the above sweet spots, you’re essentially guaranteed to get incredible value from your redemption.
Additional reporting by Andrew Kunesh and Ethan Steinberg.
Inside: This guide provides information on how to calculate the number of work hours in a year. By understanding this, you can make sure you have work-life balance.
We all know that there are 365 days in a year. But how many of those days are actually considered working hours?
There are only 24 hours in a day, 7 days a week, and 52 weeks in a year. So how many working hours are actually in a year?
The answer may surprise you.
In 2022, the average person works 38.6 hours per week (source). That’s equivalent to 2007.2 hours per year or eighty-three 24-hour days of work.
But not everyone works the same number of hours. In fact, there is a wide range of work schedules around the world. Employers, require some people to work more and others to work less.
So, how many working hours are there in a year?
How many working hours are Typically in a year?
There are typically 260 working days in a year.
Given in general, there are 52 weeks in each year and 40 hours per work day.
52 weeks * 40 hour work days = 2080 working days
A misconception with hours in a work year
It’s a common misconception that there are 2,080 work hours in a year, which is derived from 40 hours multiplied by the 52 work weeks in a year.
However, according to historical data, the average number of work hours in a calendar year is actually 2,088.
This number is arrived at by calculating the year-to-year fluctuations in working days over a 28-year period and rounding it down. To be more exact, there are 52.143 (365/7) weeks in a typical year and 52.286 (366/7) weeks in a leap year, resulting in 260-262 workdays and 2080-2096 work hours in any given year.
Thus, an average of 2088 work hours in an average year.
This is because the number of work days in a year fluctuates each year.
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How to calculate working hours in a year?
Given everyone reading this works a different number of hours per week, you need to know how to calculate how many work hours in a year based on your work schedule.
Then, you can figure out how to make the most of your time off. Especially if you are looking into how to flip money!
By following these simple steps, you can easily calculate the average number of hours you work each year.
Step 1: Determine your weekly hours
You must determine how many hours you work each week.
Consider the number of hours you work daily if there is a variance in your hours from day to day.
For example, if you work 8 hours per day, Monday through Friday, then you would work an average of 40 hours per week.
If you work 8 hours on Monday, Tuesday, and Thursday and 6 hours on Wednesday and Friday, you would work an average of 36 hours per week.
If you are clueless about how many hours you work for your employer, then use a tracking timer like Toggl Track to estimate your hours in the week.
As an hourly employee, you can check your pay stub for the listed hours worked per week.
This will give you an estimate of the total number of hours you may work in a year if you do not take any time away from work for vacations or holidays.
Step 2: Multiply by 52 weeks
Now, that you figured out the average number of hours worked per week.
Multiply your average number of hours per week by 52 (the number of weeks in the year).
This will give you the total number of hours you may work in a year if you don’t take any time away from work for holidays or vacations.
Step 3: Account for Vacation or Holidays
Thankfully, many employers allow paid time off for vacations or holidays.
Calculate the number of paid holidays or vacation days you receive in a year. Multiply the number of holidays by the number of hours you work in a day.
For example, if you get 10 paid holidays in a year and you work 8 hours a day, that would be 10 days X 8 hours = 80 hours.
In addition, if you get three weeks of paid vacation or 15 days and you work 8 hours a day, that would be 15 days X 8 hours = 120 hours.
Step 4: Subtract to Find Your Hours
Now, take the total number of hours worked (from Step Two) and subtract the total vacation or holiday days you added up in Step Three.
Using the 40 work week example, you would have 2080 working hours – 200 vacation/holiday hours= 1880 actual working hours.
Using the 36 work week example, you would have 1872 working hours – 200 vacation/holiday hours= 1672 actual working hours.
The result is your average number of hours worked each year.
Work Hours by Month 2023
For 2023, there are a total of 260 days and 2080 hours in the work year.
Month
Work Days
Work Hours
January
22
176
February
20
160
March
23
184
April
20
160
May
23
184
June
22
176
July
21
168
August
23
184
September
21
168
October
22
176
November
22
176
December
21
168
TOTAL
260 days
2080 hours
Does the number of working hours vary by country?
The answer is yes, the number of working hours can vary greatly by country.
Let’s take a look at the most extreme differences in the working hours between countries such as Mexico, where employees can work 48 hours in work week for a total of 2,496 work hours (source). Thus, Mexicans work the longest.
On the flip side, Danes prefer to stay within Denmark’s 37 hour official work week (source). Thus, Denmark’s employees only 1,924 hours a year plus working long hours is discouraged.
In the UK, you cannot work more than 48 hours a week on average (source).
According to Japanese Labor Law, which states employees are allowed to a maximum of 40 hours per week. (source)
In Canada, the standard working hours vary from 37.5-40 hours per week.
In China, they have a 996 work culture that is extremely common, which means working 9 am – 9 pm, 6 days per week for 3744 working hours per year. However, this practice is illegal because it is over the government’s 44 maximum hour work week or 2,288 work hours per year. (source)
However, it is important to note that these differences in hours worked do not necessarily lead to more productivity. An analysis of GDP data shows that Danes earn $55 more per hour than Mexicans, illustrating that time does not always equal money.
In conclusion, it is clear that working hours vary by country and by industry.
It is essential to research and discusses working hours with your potential employer before accepting a job, in order to ensure that you are not overworking yourself and to ensure that you will be compensated fairly for your time.
How can I ensure a good work-life balance with how many hours worked in a year?
Knowing the number of hours you work annually allows you to determine how much time you’ll have outside of work.
This can help you evaluate your work-life balance, which is the balance you have between how much time you spend at work versus the amount of time you spend doing personal activities, such as sleeping, eating, spending time with your family or friends, and completing your hobbies.
Since there is a total of 8,760 hours in a year, most people average 24% of their time at their jobs and sleep another (8 hours * 265 days) 33% of their life.
So, you have an average of 3,760 hours for you!
Tip #1: Take Regular Breaks:
Taking regular breaks throughout the day can help reduce stress and give you time to recharge.
Set a timer to remind yourself to take short breaks each hour and get away from your work area. Taking a walk around the block or a quick yoga session can help you stay fresh and energized.
Tip #2: Go on Vacations
Taking extended vacations away from work can help you reset and refocus.
Make sure to plan for a few days or weeks of vacation throughout the year and take advantage of the time off to rest and relax.
Tip #3: Disconnect from Work
After work hours, make sure to completely disconnect from work and enjoy your personal time. Turn off your work phone and email notifications, so you won’t be tempted to check in with work.
Tip #4: Spend Time with Family and Friends
Schedule regular get-togethers with your family and friends. Having social connections can help reduce stress and make you feel more connected to the people around you.
Tip #5: Talk to Your Manager
If you are feeling overwhelmed with too much work, talk to your manager about reducing your hours or delegating some of your tasks. Your manager should be supportive of your efforts to maintain a good work-life balance.
Tip #6: Do Self-Care Activities
Self-care activities are essential for your mental and physical health.
Taking care of yourself should be a priority.
Set aside time each day to do something that brings you joy, such as reading a book, going to the spa, or practicing meditation.
Tip #7: Consider a job change
If you feel like you’re working too many hours, you can talk to your boss about reducing your hours or looking for a new job.
If you want more control over your schedule and workload, you can also become your own boss and start a side hustle.
Learn how to make money online for beginners.
FAQs
Yes, there are overtime regulations when working in a year depending on the country you work in.
However, with many people paid on a salaried job, it is hard to justify overtime hours worked and subsequent pay that should be associated with it.
The hourly wage directly affects the number of working hours in a year.
Hourly employees can calculate their take-home pay by understanding the number of hours they will be able to work in any given year. This is significant for budgeting for large items and other financial considerations.
Learn how much do I make in a year plus use the salary calculator.
On the other hand, salaried employees typically work more than their typical 40-hour weeks.
Understanding how their salary is divided among the number of hours they actually put into their job every year helps them get a better idea of their actual rate of pay.
This can be used to their advantage when asking for a promotion or a salary increase.
Yes, there are restrictions on the number of working hours in a year, depending on the country.
In the US, there are no maximum working hours, however, according to the Fair Labor Standards Act (FLSA), when you work over 40 hours a week, you should be eligible for overtime pay.
In Canada and the European Union, the maximum amount of hours per week an employee can work is 48 hours.
South Korea, has a 52-hour maximum working week (40 regular house plus 12 overtime hours).
In Japan, there is a precise law on working hours, but there is an overtime limit of 40 hours per month.
In China, the maximum weekly hours to 44 hours.
How many hours is 40 hours a week for 1 year?
To figure out how many hours are in a year when working 40 hours a week, simply multiply 40 hours by 52 weeks. This calculation gives a total of 2,080 hours in a typical work year.
52 (weeks) X 40 (hours) = 2,080 (hours per year)
How many hours is a 40 hour work week in a month?
This varies with the number of days in the month. However, on average there are 21 work days per month.
Thus, a 40-hour work week in a month is equal to 168 hours.
21 (work days) X 8 (hours) = 168 (hours per month)
You will work fewer hours in February than in any other seven months with 31 days each.
How Many Working Hours in a year do you average?
Knowing the number of work hours in a year is an essential factor for creating a better work-life balance.
By calculating the number of hours you work annually, you can evaluate your current balance between work and personal time, and determine if you need to reduce your hours or take more time away from work.
This can help you avoid feeling overworked and stressed, and allow you to enjoy more of your free time.
Additionally, understanding the number of hours you work in a year can help you budget and plan your finances, so you can make smart long-term decisions.
Overall, it’s important to know how many working hours are in a year so that you can start to understand the concept of time freedom.
So, how many hours worked in a year do you clock?
Know someone else that needs this, too? Then, please share!!
This week’s garage sale map for Wausau-area yard sales is a service of Saint Vincent de Paul of Wausau. Submit your free listing for a future sale at this link.
NOTE: This week marks the annual Wausau Southeast Side Neighborhood Garage Sale weekend. Due to crowding on the map, we are providing the full list below of all participating sales. Thanks to Nicole Guenthner for providing this information!
May 19, 20 AND 21 734 Lake View Dr. Clothing, Books, DVDs, Homegoods, etc
May 19, 20: 8am-2pm 176 Lake View Dr. Household, clothing, books, tools, outdoor/indoor furniture, Christmas decorations
May 18: 4pm-6pm, May 19: 3pm-6pm, May 20: 9am-5pm 2408 Midway Blvd. New ping pong table, antique vanity, kitchen essentials, sporting gear, tools, housewares, decorations, camping gear, reverse osmosis system, lighting, ice fishing gear, games and much more.
May 18, 19, 20: 8am-3pm 915 Ross Ave. Misc household
May 18, 19: 9am-5pm, May 20: 8am-11am 725 Lake View Dr. Baby and kids items including clothing, toys, art easel, tricycle, high chair, swing, and car seat. Household items such as small appliances, electronics, decor, and books. Womens clothing
May 18, 19: 8am-4pm, May 20: 8am-12pm 609 Ethel St. Toys, loads of great puzzles, Stampin’ Up stamp sets(most never used), household, some camping, vintage boxed silverware, lots of Thirty-One bags, and never used rice cooker. Kids clothes: girls newborn to 5 and boys newborn to 2T.
May 20 704 Kent St. Two kiddos, 7 and 10 years old, will be hosting their own yard and bake sale to earn money for a summer trip
May 19: 9am-4pm, May 20: 9am-12pm 605 Ross Ave. Dumbbells, teen boys clothes, DVDs, CDs, housewares.
May 19, 20 2505 Mount View Blvd. All the usual garage sale items. No children’s items.
May 18, 19, 20: 8am-5pm 205 Broadway Ave. Womens Plus-sized clothing, shoes, Tupperware and other household goods, decor, hand painted glassware and many other miscellaneous cool things!
May 18, 19, 20: 8am-4pm 201 Weston Ave. Crafts and art pieces, clothing, toys, misc.
May 19, 20 421 Ruder St. Household furnishings, brand name Juniors/Women’s clothing, accessories, formal dresses; Christmas decor.
May 18, 19: 8am-4pm 1918 Fairmount St. Multi-family sale with a variety of items.
May 18, 19, 20: 8am-5pm 502 Kolter St. Multi-family sale! Spring cleaning and purging, something for everyone! Household items-popcorn machine, kitchenware, furniture, dog kennel, video games, toys, clothing for men, women, and boys, shoes, designer handbags, jewelry, and much, much more!!!
May 18, 19, 20: 8am-4pm 1912 Zimmerman St. New Bradley Smoker; FitMi portable home suite; magnifying light; doll-house; Weider weight bench; rugs; clothing; and this-n-thats.
May 18, 19, 20: 9am-5pm 1629 Plato St. Household, books, etc.
May 18, 19: 8am-5pm, May 20: 9am-12pm 121 Weston Ave. Boys and girl clothes, toys, shoes, tools, some antiques, golf clubs and balls. Variety of household items. Bows and arrows. High chair
May 19, 20, AND 21: 8am-4pm 619 Ruder St. Toys, Nerf, antique furniture, motorcycle, misc clothes and accessories, video games
May 19, 20: 8am-5pm 2517 Pied Piper Lane Multi-family sale! Treadmill, household items and decor, highchair, tow behind bike trailer and other baby items
May 18, 19, 20 1921 Roosevelt St. Housewares, tools, movies, CDs, collectibles
May 18, 19, 20: 8am-4pm 2401 Mount View Blvd. Multi-family sale. Baby items, baby and toddler furniture, toys, nursery decor, household items, household decor, women’s clothing (medium-xxl), maternity clothes men’s clothing, women and men’s shoes
May 19: 8am-4pm, May 20: 8am-12pm 816 Ross Ave. Home decor, household/kitchen items, men’s clothing size L, XL and tons of young women’s clothing, size XS, S
May 19, 20: 9am-5pm 710 Ross Ave. 5 family garage sale–clothes, shoes, house goods
May 19: 8am-5pm, May 20: 8am-3pm 2624 Oakwood Blvd. Girls clothing 7/8 to 10/12 and boys 3T-4, women’s clothing L-2xl, men’s clothing L- XXL, toys, shoes, household items, sports cards and memorabilia, many other miscellaneous
May 18, 19, 20: 9am-5pm 146 Eau Claire Blvd. Household items, toys and clothing size child 6 – adult.
May 18, 19, 20: 8am-6pm AND May 21: 9am-4pm 2401 Pied Piper Lane We have a variety of kitchen items, dining room table, furniture, pet supplies, women’s and men’s clothes ( most sizes are large to XXL, with some mediums), books, some linens for crafts, household decor, some bathroom and bedroom accessories, a tonneau cover that was one a F-150 6’5” box, and many more items. We will also have a snack station available. $5 fill a bag for clothes sale and $3 fill a bag sales for books every day. Saturday at noon, 1/2 off smaller items and best offer for larger items.
May 18, 19, 20, AND 21: 8:30am-until it slows 212 Weston Ave. Boys and Girls clothing and shoes sizes 7 – teen Women’s/Junior’s XS – L, Furniture, Gas Grill, Household, Nerf guns, Legos, and more!
May 20: 9am-4pm 415 Broadway Ave. Household items, decorative, clothing. $5 for all items you can fit in a bag. Individual items or larger items please make an offer.
May 18, 19, 20: 9am-5pm 1906 Emerson St. 3 wheel push golf cart, lawnmower, misc household and quality men’s clothes
May 18, 19, 20: 8am-5pm 807 Graves Ave. Huge multi family sale including but not limited to – Men’s Clothing Sizes L-2XL, Men’s Shoes Sizes 11-12, Women’s Clothing Sizes S-L, Women’s Shoes Sizes 8-9, Girls Clothing Sizes 3T-5T, LOTS of Kids Toys, Decor, Kitchenware, Holiday Items, Outdoor decor, And much more!!
May 18, 19, 20: 8am-5pm 904 Lake View Dr. US & world coins, Denmark blue & white plates, Disney snow globes & water fountains, collector plates (Star Trek, eagles, Elvis, etc.), books, lighted beer signs, CDs, DVDs, sports figures, racing, fantasy axes and shields, Beanie Babies, Beanie Buddies, unused sporting tickets, vinyl records and more.
May 18, 19: 9am-5pm 1927 Lamont St. Estate/Rummage Sale. Rain or shine!! (HUGE tent!) More items added from last week’s sale. Furniture, kitchen items, home decor, brand new and used exercise equipment, tons of bedding and curtains, rugs, baskets of all sizes, luggage, dishes, Christmas items, German movies with multi-region DVD player. Too many items to mention. Make me a REASONABLE offer!!!
May 18: 12pm-5pm, May 19: 9am-5pm, May 20: 10am-5pm 722 Weston Ave. Multi-family sale. Maternity, girl clothes: newborn-24 months, womens and mens clothes, kitchen items, house items, unopened formula, play kitchen, craft stuff, wedding stuff, AC units and MORE!
May 19, 20: 8am-4pm 2503 Marshall St. Boy Scouts National Jamboree fundraiser will be selling coffee, donuts, and additional drinks.
May 18, 19: 8am-5pm 147 Eau Claire Blvd. Old Army trunk, Jenny Lind maple full size bed with frame, vintage lawn chairs and vintage wood folding chairs, Pyrex, nested bowl sets, vintage graters and cookie cutters, Ohio art checkerboard, DVDs, backyard privacy screen, some tools, housewares, canning jars, new lids and rings in boxes and much more. NO CLOTHES.
May 18, 19, 20: 8am-5pm 401 Eau Claire Blvd. Wrought Iron outdoor dining set, Outdoor Lounger, Weber Charcoal Grill, De-Humidifier, Punching Bag, 2 person ice fishing Shelter, Fosse Ball Table, Bike, DIY Swing Set Hardware (NEW), 5-Drawer Dresser, Leaf Blower, Adult Clothes – S-L, Boys Clothes 8-12 , Toys, Bedding, Misc Household Items WE HAVE A LITTLE BIT OF EVERYTHING Look for the GARAGE-A-POLOZA sign!!
May 20: 8am-3pm 326 Ross Ave. Sports Cards/Memorabilia, Collectibles, CD’s, DVD’s, Vinyl/Records (Oldies to Current), Men’s Shirts (Brewers/Sports Related), Women’s Clothing, Snowboarding Jacket, Ice Fishing Bibs, Women’s Scrub Tops, many other items!
May 20 AND 21 1913 Kings Court Watermelon and cucumber Agua fresca (fresh water)
May 18, 19: 7:30am-5pm 1635 Plato St. Eclectic sale of mostly man items: knives, axes, traps, welder, troy bilt rototiller, vintage cans, cast iron, Coleman Lanterns, and military items. Some kids items and a fair amount of jewelry. A lot of vintage/collectible items that are priced to move! If raining, the sale will be shut down.
May 18, 19, 20: 9am-5pm 729 Graves Ave. GINORMOUS Multi-Family Sale. If we don’t have it, you don’t need it!! Household, Tons of Books, Clothes, Shoes, Toys, Canoe Bookshelf, Camping Lanterns, Stuffed Animal Cage, FUNKO POPS and so much more. If it is a major downpour, we may not open or close early since there is so much stuff and not everything will display inside the garage.
May 17 AND May 18, 19, 20: 9am-5pm 1410 Fairmount St. Medical supplies, women’s/men’s clothes, homemade woodwork crafts, antiques, kitchen gadgets, books, etc.
May 18, 19, 20: 8am-4pm 1923 Zimmerman St. Antiques and collectibles.
May 20: 8am-4pm and may be open May 18th and 19th after school 304 Eau Claire Blvd. Kiddo is running a treat stand with prepackaged snacks and drinks
May 18: tentatively open. May 19, 20: 8am-5pm 152 Bertha St. Womens and men’s clothes, purses and bags in very good condition, some household decor items and art.
Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions.
This episode is dedicated to exploring the motherhood pay gap and potential solutions.
Check out this episode on either of these platforms:
Our take
You might have heard about the gender pay gap — or the difference in earnings between men and women — but what about the “motherhood penalty”? According to a recent report from the Pew Research Center, the gender pay gap grows more pronounced during a time when adults are likely starting and building their families: between ages 35 and 44.
But what does that look like in real numbers? Calculations from the National Women’s Law Center show that women who work full time year-round make 84 cents for every dollar men make. Mothers make only 74 cents for every dollar fathers make, amounting to $17,000 less per year.
In this episode, we explore the financial hit women take when they become mothers. We speak to experts who help us understand not only what’s driving the gender pay gap but also why it’s so difficult for women to recover financially after they have kids. We also learn more about policy changes at the federal, state and employer levels — from pay transparency to paid leave — that can help to close the gender pay gap for all women, not just mothers.
To a large extent, simply having more knowledge can empower women to ask for more when accepting a job offer or negotiating a raise.
More about parenthood, pay equity and finance on NerdWallet:
Episode transcript
Sean Pyles: Happy Mother’s Day, Amanda.
Amanda Barroso: Thank you, Sean. I’m sitting here in my closet where I record all the podcasts, and my toddler is right outside the door. I’m feeling about 20 months pregnant with our second. So needless to say, I’m feeling very much like a mother right now.
Sean Pyles: You are channeling and embodying Mother’s Day right now.
Amanda Barroso: Yes. Yes.
Sean Pyles: So how are you celebrating your day?
Amanda Barroso: So aside from a delicious brunch cooked by my husband and some family time, I’m setting aside some time to chat with you about the gender pay gap and how it widens for women once they become moms.
Jasmine Tucker: So I think we really need a multipronged approach to this. We need stuff to happen at the employer level. We need stuff to happen at the state level. We need stuff to happen at the federal level.
Sean Pyles: Welcome to the NerdWallet Smart Money podcast. I’m Sean Pyles. I’m here with NerdWallet writer Amanda Barroso for a special Mother’s Day episode about the gender pay gap and the motherhood penalty women face. Welcome back to Smart Money, Amanda.
Amanda Barroso: Hey, Sean. I’m happy to be here with you. The gender pay gap probably isn’t the first thing that comes to mind when people think about Mother’s Day. They’re probably thinking about flowers, brunch, chocolate. But this is something that’s personal to me.
Aside from being a mother, I’ve been thinking about and researching this topic for a long time. So before I came to NerdWallet, I got my doctorate in women’s and gender studies and then worked in D.C. for about five years at nonprofits that researched this issue. So it’s been on my mind for a while.
Recently, one of my former colleagues at the Pew Research Center published a report about the just persistent and enduring nature of the gender pay gap, and it turns out that parenthood is part of what’s made this thing stick around for so many years. The thing about the gender pay gap, though, is typically women never really recover from it financially, especially once they become moms. So the topic is on my mind, especially as I prepare to have our second child in just a few months.
Sean Pyles: All right, so in this episode, you’re going to help us understand what the gender pay gap really is, why it’s worse for mothers and maybe even talk about some solutions to what can feel like an insurmountable problem.
Amanda Barroso: That is the goal, at least.
Sean Pyles: OK. Well, let’s start with the basics. Can you lay out for us what exactly the gender pay gap is?
Amanda Barroso: Sure. So simply put, the gender pay gap is the difference in earnings between women and men. Every year, researchers are updating their calculations. One source of data from the National Women’s Law Center shows that women who work full time and year-round typically make 84 cents for every dollar that men make. For moms, this drops to 74 cents for every dollar that fathers make. This amounts to a $17,000 loss in income every year.
Sean Pyles: $17,000. That’s enormous, Amanda. I mean, just think about all that a mom could do with that amount of money.
Amanda Barroso: Totally. I mean, it’s not pocket change for a Target run, that’s for sure. The reason that I wanted to make this podcast, actually, is because it was unclear to me what it is exactly about motherhood that penalizes women financially, but then on the flip side, rewards men who become fathers at the same time. In research, this is something called the fatherhood bonus. So I’m just thinking, what’s going on here?
Sean Pyles: OK, so just to make sure that I’m following you, there’s the motherhood penalty, and then there’s also the fatherhood bonus. These terms seem pretty self-explanatory, but can you give us a quick definition of each so that we’re all on the same page?
Amanda Barroso: So the motherhood penalty is the earnings hit that women take when they become mothers. Sometimes it’s because they have to step back or scale back from the workplace to become primary caregivers, and of course that impacts their overall earnings. But for men who become fathers, the data shows that they get a boost in their earnings, actually. And this may be because employers are more likely to see fathers as providers, offer them more hours, more opportunities, and the fathers can then take advantage of that because, surprise, they have someone at home taking care of the kids and the housework.
Sean Pyles: Got it. I think there may also be psychological and cultural pressures going on as well. A lot of dads may feel like it’s important to step up and work harder once they have a kid, or they’re afraid that if they do try to take time off and prioritize child care, that they’ll be judged harshly and their careers might suffer.
Amanda Barroso: Totally. So to understand the origins of the parental pay gap, I talked with Jasmine Tucker — she’s the vice president for research at the National Women’s Law Center — and that’s who you heard at the beginning of the episode.
Jasmine Tucker: So what we see in the data is that women face a wage gap right as they begin their careers, but it’s smaller. So people are just graduating college, people are just graduating high school and entering the workforce. Women are making 90 cents for every man’s dollar.
Amanda Barroso: So the playing field is more equal when young men and young women are first starting their careers because, you think about it, they’re both starting at entry-level positions at the lower end of the pay range. But then something starts to happen as they enter their 30s. And this is where you see that motherhood penalty and the fatherhood bonus emerge that we were talking about earlier, Sean.
So to understand this, I talked to Rakesh Kochhar — he’s a senior researcher at the Pew Research Center — and he’s the one who wrote the report that I mentioned earlier. So I wanted to learn a little more about this window of time and what exactly happens to mothers and fathers.
Rakesh Kochhar: The most significant increase in the pay gap happens around age 35 to 44. Beyond that, it pretty much stays steady, so it doesn’t rebound back to pre-parenthood days, but it stays widened. Parenthood widens it, and that widening does not go away.
Sean Pyles: OK. So what Rakesh is saying is that not only is there a gender pay gap, but that this gap widens between mothers and fathers between the ages of 35 to 44. So under one roof, you could have one parent reaping the benefits of this gap, while the other’s pay is suffering.
Amanda Barroso: And that gap never closes, even as women age. Plus, this data isn’t even factoring in same-sex households. I mean, another thing that we should also clarify from Rakesh’s work is his research shows that women with kids at home earn less than women without kids at home. And here’s where the fatherhood bonus really comes into play. Fathers earn more than other workers in general, including men without children.
Sean Pyles: And I know there’s a ton of data out there around the pay gap, but I want to zoom out. There are still a lot of people who don’t think the pay gap is well, real. Or they believe that women simply pick fields with lower wages, things like being a teacher or a service job, while men happen to choose jobs with higher earning power, like something in tech or banking or engineering.
Amanda Barroso: There’s obviously a lot more at play than men and women just simply choosing different jobs. The true meaning of occupational segregation takes into account how a particular group, so here we’re talking about men and women, how they’re overrepresented in a certain job, and this is often due to social forces and pressures or policies that create this division. It’s certainly more than just men and women just happen to choose these separate and distinct fields, right?
Sean Pyles: Yeah. Well, the other thing that critics of the gender pay gap dispute is the role of discrimination. Did the experts that you talked with get into that at all?
Amanda Barroso: Yeah. On the question of whether the pay gap is real or not, Jasmine was just like, “Look, here’s the data.”
Jasmine Tucker: We see a wage gap in 94% of occupations. We see a wage gap when you look at different education levels and especially women of color gaining higher education, like Black women and Latinas, they’re still losing millions of dollars over a career compared to white non-Hispanic men.
Sean Pyles: So Jasmine has the data to back up the wage gap, but what about the occupational segregation and discrimination question? Did she or Rakesh talk about that?
Amanda Barroso: So Rakesh was basically like, “Look, occupational segregation is a thing. It is an undeniable thing that happens, but so is discrimination.” But that last piece is just a little harder to precisely measure.
Rakesh Kochhar: Yes. So both are factors. One, as you noted, is easier to measure than the other. The easier one to pick up on is what are the types of jobs men and women do, or what are their occupations? And there are distinct differences that continue to linger. For example, women, much more so than men, are represented in education or health care jobs. Men, on the other hand, are more likely than women to be in STEM jobs or in managerial occupations and some other occupations. And the differences have narrowed over time. But this narrowing also halted around the turn of the century.
The other side of the equation you mentioned is discrimination. That is where an employer may treat men and women differently at the workplace or during the hiring process itself. Many experiments have revealed it as a likely factor. So there is evidence of discrimination, but precisely how much and where it happens, that’s harder to measure.
Sean Pyles: All right, I’m glad we cleared that up. But what I’m wondering about now is where does this pay gap come from? There are people behind the decisions to pay a mother one amount and a father a different amount. What’s actually driving the gender pay gap?
Amanda Barroso: You know, Sean, I asked Rakesh that exact question. Here’s what he said.
Rakesh Kochhar: In a survey we did accompanying this report, we find that women with children at home are much more likely than men to feel a great deal of pressure to focus on family needs. So partly a result of these pressures and perhaps partly by choice — it’s hard to sort out or disentangle these two forces.
What we see is that with the onset of motherhood, when about two-thirds of women ages 35 to 44 have children at home, we find that they tend to retreat from the labor force. Labor force participation decreases, and at the same time, women tend to work fewer hours on average per week.
So in effect, what this means is parenthood impacts the amount of workplace experience women acquire relative to the workplace experience that men are able to acquire. And men are seen to work harder because they actually increase the number of hours they work on average per week and they become more active in the labor force when they become fathers. So partly through a withdrawal on the part of women and partly through more engagement on the part of men, we see the gender pay gap widen around that time. And this increase happens most noticeably around ages 35 to 44.
Amanda Barroso: So, as Rakesh mentions, there are significant cultural forces involved here, but I wanted to hear a little more from Jasmine about how this plays out, especially around notions of who is a breadwinner.
Jasmine Tucker: What I think is at play are a couple of things. So first is outdated notions about who’s caring for families, who is dedicated to the work, who needs the money. And so if you think about dads in the workplace, you’re like, “Oh, well so-and-so just had a kid. We need to put him up for promotion because he’s supporting three people now instead of two,” whatever.
And I think that despite all of this evidence that shows that women are breadwinners in their families, either primary or co-breadwinners, there is this outdated notion that when women have kids, they become less dedicated to their work. And so they have to leave at 4 p.m. to go pick up kids. And so that means that they’re not dedicated to their work, forget that she’s answering emails or whatever she’s doing late at night after the kids are in bed. Child care is definitely playing a big role here. If child care is unaffordable and it’s making up large shares of women’s earnings, they might be more likely to leave the labor force.
Amanda Barroso: That point about child care really hits home, and it’s something that we’ve covered together on the podcast before, Sean. The other thing that she mentions are caregiving responsibilities, which when you think about it, they only multiply with each child that parents have, right?
Sean Pyles: And we know that women tend to take on more caregiving responsibilities than men, too. So women are being paid less for the same job and also having to shoulder more work around the home.
Amanda Barroso: Exactly. So this is what I wanted to know. Does the impact of the gender pay gap then intensify with every child? Here’s what they had to say. Let’s hear from Rakesh first.
Rakesh Kochhar: In the past, we did look at what happens to work effort depending on the number of children you have at home. And the more children you have, the greater the number of hours worked by men or fathers. And the shorter the workweek among women. So having more children definitely has more of an impact on engagement with the workforce on either side, negatively among women and positively, you might say, among men.
Amanda Barroso: So with the birth of each child, mothers are withdrawing from the workplace for one reason or another, while fathers are putting in more time. But what does this mean for actual earnings? Here’s what Jasmine said.
Jasmine Tucker: There are some studies that show there’s like a 7% drop in earnings, like per kid, that you have for women. But we see the opposite when it comes to men. When they have kids, their earnings tend to go up. And so I think over time this creates this divide that widens, right, it just continues to widen and get worse over time.
Amanda Barroso: So is it just a general issue with the imbalance of division of labor? So women are the ones who are assumed to be doing the caregiving. So they’re the ones leaving work early, and then it snowballs from there.
Jasmine Tucker: It all reinforces each other. We saw this in the pandemic. We saw more women leave the labor force than we saw men, and we saw women out for longer periods of time. So we know that early days, in 2020 and 2021, we saw lots of women remain out of the labor force because they were providing unpaid care for their children. And so if somebody needs to take time out of the labor force, who’s it going to be?
Amanda Barroso: Jasmine has a good point here. The pandemic really upended the working lives of many mothers across the U.S. because when you think about it, Sean, so much of that infrastructure that they relied on to be workers, was just no longer available. So things like child care, in-person schooling, after-school activities or weekend activities, things like that that made their working lives possible were just unavailable.
Sean Pyles: Well, what’s interesting is that in recent months, women have returned to work. In February 2023, the number of women in the workforce was higher than before the pandemic, but that was after a steep, sudden drop-off early in the pandemic and then a slow climb back up over the past three or so years. Do you think that that time away from work would have an impact on their earning potential?
Amanda Barroso: Exactly. But the thing is, once women leave the labor force, it’s really hard for economists to understand what it means for their future earnings, even if they return to work again at a future time. And this is something that Rakesh talks about in his report.
Rakesh Kochhar: Now in our data, we only observe the earnings of people who are working, who are employed. And if we look at just employed men and women, we are not anymore looking at women who have withdrawn from the labor force. Some will have withdrawn permanently, some will have withdrawn only for two, three months or four months, and some may be for two, three, four years until a child goes to kindergarten or elementary school. So there’s going to be a varying degree of losses felt by women.
And what we do not observe is this loss in potential earnings: What might have been the earnings of a woman who took, say, five years off from work? We also do not know what might have been the earnings of women who’ve permanently withdrawn because they decided for whatever reason to be at home to look after kids until they’re off to college, maybe, or never returned to the labor force. So there is some loss in the potential earnings of women, their lifetime earnings, that we are not able to observe.
Amanda Barroso: Rakesh points to a blind spot in collecting pay gap data on women, especially as they become mothers and exit the workforce for a time. And as Jasmine mentioned, the pandemic has been especially hard on mothers’ employment.
Jasmine Tucker: So I think early in the pandemic, there was a lot of worry about moms and women just generally leaving the labor force and what that would mean for their careers. We saw 20 million plus jobs just completely gone in two months time, from February to April 2020. And I think initially in the early days of the pandemic, there was, I think, a really scary moment of what’s going to happen to the wage gap? How is this going to impact it? How is this going to set women back?
And so I think the data from the Census Bureau over the last couple of years, it’s been hard to compare it to previous years. Because the labor market looks completely different than it did in 2019, which we would have to consider pre-pandemic.
So what we have seen since 2020 is some closure in the wage gap. And part of that is because we saw a lot of the jobs that were lost were low-paid jobs. So who was left right in the pool of people working full time and year-round were higher-paid workers. So we lost all of these women in low-paid jobs. And so that appeared to shrink the gap.
Sean Pyles: It seems like both the gender pay gap problem and the motherhood penalty that exacerbate it are really complex.
Amanda Barroso: I mean, there’s not a one-size-fits-all solution. I think Rakesh put it really nicely.
Rakesh Kochhar: So it’s that drilling down to individual choices and cultural pressures and family pressures and workplace issues. It’s very heterogeneous; it’s very diverse. It’s very difficult to perhaps eliminate with a sweeping policy.
Sean Pyles: All right, well, that does seem a tall order, but I also see a glimmer of hope in Rakesh’s answer. There are a number of different areas we can mine for solutions on an individual level, family level, culturally and in the workforce.
Amanda Barroso: I know it seems bleak, and in a lot of ways, these issues are so much bigger than an individual mother can solve on her own. Trust me, I feel the weight of this. I’m a mom, I am expecting another one, and I obviously care about my earnings. But you’re right; there are some things and some ways that we can move forward and continue to make progress in closing the gap from others. So I dug into this a little bit with Jasmine.
Jasmine Tucker: So I think we really need a multipronged approach to this. We need stuff to happen at the employer level. We need stuff to happen at the state level. We need stuff to happen at the federal level. So we could do things like pass equal pay bills, like the Paycheck Fairness Act at the federal level. There is right now a lot of momentum in state legislatures this year around pay, salary transparency bills, which is great because it essentially says if you’re posting a job, you have to provide a range in the salaries. The data shows that women underestimate the salary and men ask for the moon, which contributes to this.
Amanda Barroso: So what are some things that employers can be doing? It does seem like some of the issues here are revolving around how managers or HR or people in control are thinking about motherhood and fatherhood.
Jasmine Tucker: I think that there’s a lot that employers can be doing. They can be doing internal audits of how much are they paying people by race and by gender, and what does that look like? And doing some course-correction there. I think that they could be hiring more women and in particular women of color in C-suite positions and in other leadership roles, because if you have a workplace that only is made up of men and in particular white men, I don’t see how those workplaces are going to be family-friendly or actually meet the needs of moms in that workplace.
Amanda Barroso: Your earlier point about employers examining their own pay practices seems really important. And I don’t want to overlook your point about race, either. I mean, the calculations that you’ve done show that Black, Latina and Native women are making even less than that overall 84 cents per dollar figure that we talked about earlier. According to your data, Black women make 67 cents for every dollar, and Latina and Native women make 57 cents. And again, this is compared with white non-Hispanic men. And that’s just the overall number, not the number for moms of color. So that means their total annual losses are much higher.
Jasmine Tucker: Yeah. It’s life-changing money. It could be a down payment for a house; it could be an investment in your education so that you can move from your low-paid field to a higher-paid field. It could be savings toward a kid’s education fund. There, I think, are so many wealth-building opportunities that women and moms are missing out on because they’re being paid less.
Amanda Barroso: What other policies can be implemented or changed to help close the gender pay gap for moms?
Jasmine Tucker: The unionized workplace is good for women. We see wages go up; we see wage gaps decrease.
Amanda Barroso: Workplaces adopting family-friendly policies alone won’t fix the pay gap, though. Rakesh even points to other European countries where these policies are part of workers’ everyday lives already and found something interesting.
Rakesh Kochhar: When we look at Scandinavian countries, such as Denmark, where family-friendly policies are commonplace, you still see that parenthood drives an increase in the wage gap because men and women react differently to parenthood.
Amanda Barroso: This reaction to parenthood Rakesh talks about could point to a bunch of things. I think some of it’s likely a response to cultural and social pressures that fathers face, thinking about putting in more hours in the office, what that might mean, it might mean seeing your child less, added stress. There’s this financial piece of the fatherhood bonus that seems like a positive one, but still there are costs.
Sean Pyles: So we’ve talked about potential solutions at the state and federal levels, but there have to be things that parents can push for in their own workplaces.
Amanda Barroso: I think you’re exactly right, Sean. Look, OK, let’s look at NerdWallet, for example. The company does offer a really generous paid leave policy, around five months leave at 100% pay, which not only means that parents can bond and care for their newborn, but they also don’t have to dig into savings to cover time away from work. I mean financially, that’s huge, right? But in addition to that, all new job ads that NerdWallet puts out provide a salary range, which means that potential candidates have a leg up. So when they get asked that dreaded question that we’ve all been asked in a job interview, “What’s your desired salary?”, they have some information to work with, right? They’re not pulling a number out of the air.
So as of March 9, actually eight states have made salary transparency a requirement on job ads, and 15 states are considering similar legislation, and that’s according to the Center for American Progress. So I think that that’s a step in the right direction.
NerdWallet also recently started providing employees with the salary bands for their job title based on their title and location. So I can log in and see where I fall in that pay band, and when it comes time for review or negotiations, I just have a little more leverage. I have more information and knowledge that I can work with. I think these last two things are huge, especially for women. So studies have shown women tend to undervalue themselves. They ask for less in negotiations or when they’re starting a new job. And in this case, I think for women, knowledge is power.
Sean Pyles: And it just goes to show how big an impact one company’s policies can have on the way you can structure your life, your family, your ability to earn money. And it gets back to the fact that it’s a little unfortunate for many workers that they don’t have those benefits where they work. And we should state that Amanda was not told by NerdWallet to say any of that. It’s just a legit perk that’s made a big impact on her ability to balance motherhood and having a career. Is that right?
Amanda Barroso: That’s absolutely right. But the thing is, there are templates for this. There are companies who are employing some of these policies and measures, and we can learn from those things. I think a big thing is just talking about money, talking about these policies. You hear that your friend or your neighbor that they work at a place like NerdWallet, great. Let’s figure out how they’re doing it so I can bring that back to my employer and see what I can make happen for myself and my colleagues.
Sean Pyles: Exactly. Well, Amanda, thank you so much for coming on the Smart Money podcast to help us explore this really important topic. I appreciate it.
Amanda Barroso: I always love being here and talking about these things with you, Sean, and I am very much looking forward to enjoying that five-month paid leave and catching you on the flip side of that.
Sean Pyles: All right. Well, I’m expecting many baby pictures while you’re out.
Amanda Barroso: Absolutely.
Sean Pyles: And that’s all we have for this episode. Do you have a money question of your own? Turn to the Nerds and call or text us your questions at 901-730-6373. That’s 901-730-NERD. You can also email us at [email protected] Also visit nerdwallet.com/podcast for more info on this episode. And remember to follow, rate and review us wherever you’re getting this podcast.
Amanda Barroso: This episode was produced by Sean Pyles and myself. Liz Weston helped with editing. Sheri Gordon helped with fact-checking, Kaely Montanan mixed our audio, and a big thank-you to the folks on the NerdWallet copy desk as always for their help.
Sean Pyles: Here’s our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
Amanda Barroso: And with that said, until next time, turn to the Nerds.