Consider a typical money-based scenario:

• Person A requires a task to be performed (e.g., car maintenance, cleaning services, gardening, etc.).
• Person A is going to use the money he received outside his community to pay for the task.
• Person B lives in the same community as Person A
• Person A approaches Person B.
• Person B agrees to perform the task for a fee which includes skills, time, and materials.
• Person A contracts Person B to complete the task.
• Once the task is completed, Person A pays Person B the agreed-upon fee.
• Person B takes the fee, which has become an income, and uses it to purchase goods outside or inside the community and pay for services required from Person C, who may live outside or inside the community.

The time banking concept differs from the above, since it allows for a way to incorporate the services within a community, which has other benefits. 

Now, consider a time banking scenario:

• Person A requires a task to be performed (e.g., car maintenance, cleaning services, gardening, etc.).
• Person A uses accumulated time service credits, which he has earned with the community) to pay for the task.
• Person B lives in the same community as Person A
• Person A approaches Person B.
• Person B agrees to perform the task for a time service credit fee which includes skills, time, and materials.
• Person A contracts Person B to complete the task.
• Once the task is completed, Person A pays Person B the agreed-upon time service credit fee.
• Person B takes the time service credit fee, which has become an income, and uses it to inside the community. This reutilization of the time service credits within, allow for a community wealth, employment, growth to occur.

Person A and B's spending decisions can significantly impact the economic, social, and developmental aspects of the community.

As more and more money is spent outside a community, for goods and services, the growth of the community reaches a plateau. This plateau results in social decohesion, encourages the gap between have and have-nots, which in turn leads to an ever-increasing  state of lack of services, development of goods, crime and vagrancy. This cycle this self-perpetuating, because people who generates money outside the community, will limit their spending in that community that is not conducive to the person’s needs within the community.

Time banking is not:

• Replacement for money. It is rather a complementary system of exchanges of services, goods within a community which uses a common unit, which is a service time credit.
• It is not a bartering system since fees are based on time, and not on the exchange of dissimilar items. It uses a intermediate common, freely available unit, which is time.
• A volunteer system, which is an elective and free-choice act of an individual or group freely giving time and labor, often for community service.

Some of the economic concepts related to time banking are:

Economic Circulation

When Person B spends the income within the community, it helps circulate money locally, supporting local businesses and services. This can lead to economic growth and stability within the community. However, this is not always the case. Community members typically utilize services external to the community. This places a restriction on the economic growth of the community. Use community time bank allows for community wealth generation, since the time service credits must be used within the same community.

Job Creation

Spending on services or goods within the community can create job opportunities for other community members, fostering employment and skill development. If the services of an external community are used,  by extension the employment rate and skills development is restricted inside the originating community. If everyone has an opportunity to work to generate an income (time service credits), most people will be prepared to work. This is the difference between been “unemployed” and “actively looking” for employment. Time banks focus not only on the actively looking and also on the unemployed community members.

Community Development

Increased spending within the community can lead to improvements in infrastructure, public services, and overall community development, enhancing the quality of life for residents. The lack of spending within the same community results in poor infrastructure, public services and development. Time banking allows for spending time service credits to enhance community development.

Social Cohesion

Engaging in transactions within the community can strengthen social bonds and foster a sense of belonging and mutual support among community members. The lack of spending within a community destroys social cohesion. The more people involved incorporated in time banking in a community, enhances social cohesion.

External Influence

If Person B spends the income outside the community, it can bring external goods, services, and influences into the community, potentially diversifying the local economy and culture. However, this restricts a community to develop its own goods and  services inside the community.

Time banking creates value, access, and dignity through community cooperation.

It’s not just about cash, who has it, who does not, personal wealth, etc.

True community wealth includes:

• Skills and talents people can share
• Support systems that reduce dependence
• Local exchange that keeps value within the community
• Trust, pride, and belonging

Time banking creates, builds, and sustains communities by:

Activates Hidden Skills

• Everyone has something to offer — but many feel left out of the economy.
• Time Banking values all contributions: cooking, tutoring, fixing, caring.

This activates the “wealth” of people who are jobless or overlooked.

More people contributing = more value circulating.

Keeps Resources in the Community

Instead of paying outsiders (e.g., big businesses or faraway services), people trade with each other.

• A neighbour helps fix your roof in exchange for cooking lessons.
• A young person babysits and earns time service credits for tutoring.

Wealth stays local, not lost to cash systems.

Reduces Dependency on Money

People often can’t afford services they need — but they have time.

• Time Banking removes money as a barrier.
• You can earn what you need by helping others.

Access to more services = stronger households.

Strengthens Social Bonds

Wealth isn’t just what you have — it’s who you can count on.

• Time Banks build trust, friendship, and cooperation.
• These connections form a safety net in hard times.

Communities become more resilient and self-reliant.

Boosts Confidence and Skill Development

As people participate, they:

• Learn new things
• Gain confidence
• Discover their value

Increased human capital — a real form of community wealth.

Supports Youth, Elders, Beggars, Vagrants and Vulnerable Groups

Time Banking:

• Gives elders meaningful roles
• Keeps youth involved and mentored
• Helps single parents, disabled, or unemployed feel empowered

No one is left behind — everyone adds to the community’s strength.

Lays Groundwork for Cooperative Economies

Time Banks can evolve into:

• Tool-sharing groups
• Food co-ops
• Local businesses
• Community credit systems

The seed of Time Banking grows into a thriving local economy.

Time Banking turns time, care, and trust into wealth — for everyone.

One of the indirect outcomes of a time bank is the reduction of elements (crimes, drug use and vagrancy(begging) that are indicative of poor communities.

This is how time banking can assist:

Keeps Youth and Adults Engaged

Idle hands = high risk. But Time Banks:

• Offer constructive activities (cleanups, mentoring, helping elders)
• Let people earn respect through helping
• Involve young people in positive, trusted roles

Fewer hours spent bored, angry, or getting into trouble.

Builds Community Trust and Accountability

Crime thrives where people don’t know each other and there is no sense of belonging.

• Time Banks connects neighbors:
• Everyone helps and is helped
• People look out for each other

Suspicious behavior is more likely to be noticed and challenged and a stronger social fabric where crime feels out of place.

Provides Alternatives to Theft or Gangs

When people don’t have money, they may feel forced to steal to survive and join gangs or antisocial groups for support. Time Banking gives people:

• A way to earn value without stealing
• A sense of community without gangs
• Support and respect through honest work

Hope replaces desperation.

Encourages Skill-Building & Self-Worth

Many crimes are linked to frustration and hopelessness. But if someone:

• Learns a new skill (e.g. fixing bikes, gardening, tutoring)
• Earns time service credits
• Gets appreciation from others

They begin to see their future differently and confidence replaces anger.

Creates a Sense of Purpose

People who commit crimes often feel disconnected and like they have “nothing to lose”.A Time Bank gives them:

• Something to be proud of
• Relationships that matter
• Motivation to protect the community, not harm it

Purpose replaces recklessness.