Raking Leaves: By the Hour or by the Job
A student who wants to earn money in autumn is offered two ways to be paid for raking a neighbor's yard. The neighbor will pay $10 for every hour of work, or the neighbor will pay a flat fee of $50 for the whole yard, however long it takes. Which choice is better? The answer depends on a rate, which compares two different quantities, such as dollars and hours.
Start with the hourly offer, whose rate is $10 per hour and never changes. The flat fee has to be turned into dollars per hour before the two offers can be compared fairly. That means dividing the fee by the number of hours worked, and the number of hours is exactly what makes the decision tricky.
Suppose the student can finish in 4 hours. Then $50 divided by 4 comes to $12.50 per hour, which beats $10. But suppose the leaves are thick and wet, and the job drags on for 6 hours. Now $50 divided by 6 is only about $8.33 per hour, and the hourly pay would have been better.
The lesson is that a flat fee rewards speed, while hourly pay protects you when a job takes longer than expected. Before choosing, the student can look over the yard, estimate the time, and do the division. Adults use this same thinking when they decide whether to take a salary, charge by the project, or bill by the hour.