DEFINITION of 'Time Banking'

An alternative monetary system that bases its value on units of time rather than on commodities or other items of value such as cash. Time banking focuses on the value of one hour of labor, and was developed during the 1980s in order to increase social capital by focusing on the value of the individual rather than the value of a hard currency.

BREAKING DOWN 'Time Banking'

Time banking is an opt-in system, with members earning "time dollars" by providing or using services. Often these services focus on community outreach, such as the care of the elderly, business development help and home repair. Because it does not have a true monetary value, time banking is not like a local currency.

RELATED TERMS
  1. Liquidation Value

    The total worth of a company's physical assets when it goes out ...
  2. Adjusted Net Worth

    A method for valuing an insurance company using capital values, ...
  3. Store Of Value

    Any form of commodity, asset, or money that has value and can ...
  4. Stated Value

    A value that, instead of being par value, is assigned to a corporation's ...
  5. Mark To Market - MTM

    1. A measure of the fair value of accounts that can change over ...
  6. Economic Value

    The worth of a good or service as determined by people's preferences ...
Related Articles
  1. Investing

    The Difference Between Enterprise Value and Equity Value

    Enterprise value calculates a business’s current value, while equity value offers a snapshot of that business’s current and potential future value.
  2. Investing

    Market Value Versus Book Value

    Understanding the difference between book value and market value is a simple yet fundamentally critical component to analyze a company for investment.
  3. Investing

    What Is The Value In Value Investing?

    Value investing has its advantages, but it also has significant drawbacks. We look at the pros and cons.
  4. Investing

    Intrinsic Value

    Learn more about this way of valuing a company or an asset based on an underlying perception of its true value.
  5. Investing

    Cheap Stocks Or Value Traps?

    The value of stocks that trade at less than cash per share can be deceiving.
  6. Investing

    Does Active Value Investing Pay Off?

    Learn about a recently published paper that explores why active value investors underperform.
  7. Investing

    What's Fair Value?

    Fair value has three different meanings depending on the context.
  8. Investing

    Explaining Market Value of Equity

    Market value of equity is the total value of all the outstanding stock as measured in the stock market at a particular time.
  9. Investing

    Understanding Face Value

    Face value is the dollar value stated on a security.
RELATED FAQS
  1. What can cause an asset to trade above its market value?

    Learn some of the factors that can affect the price of an investment asset and the major reasons why an asset might trade ... Read Answer >>
  2. What is the difference between a company's book value per share and its intrinsic ...

    Book value and intrinsic value are two ways to measure the value of a company.In simple terms, book value is based on the ... Read Answer >>
  3. What are key economic factors that can cause currency depreciation in a country?

    Read about the causes of currency devaluation, and find out how to differentiate between relative and absolute currency devaluation. Read Answer >>
  4. Is the nominal value of a security ever also the real value?

    Learn more about nominal values and real values. Find out how these market values change and if they may ever converge for ... Read Answer >>
  5. What is the difference between book value and carrying value

    Dig deeper into the definitions of carrying value and book value, and learn to differentiate between their various financial ... Read Answer >>
  6. What is the difference between carrying value and fair value?

    Learn about the carrying value and fair value of assets and liabilities, what the carrying and fair value measure and the ... Read Answer >>
Hot Definitions
  1. Index

    A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is a hypothetical ...
  2. Return on Market Value of Equity - ROME

    Return on market value of equity (ROME) is a comparative measure typically used by analysts to identify companies that generate ...
  3. Majority Shareholder

    A person or entity that owns more than 50% of a company's outstanding shares. The majority shareholder is often the founder ...
  4. Competitive Advantage

    An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers ...
  5. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities ...
  6. Wash-Sale Rule

    An Internal Revenue Service (IRS) rule that prohibits a taxpayer from claiming a loss on the sale or trade of a security ...
Trading Center