Happiness and thrift: When (spending) less is (hedonically) more (original) (raw)
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Does Spending Make Us Happy? The Role of Consumption on Life Satisfaction
International Journal of Business and Applied Social Science, 2021
In economic theory ‘consumption’ is commonly seen as final ‘utility’, but the factual relationship between consumption and life satisfaction has hardly been considered. Empirical research on this matter can provide a basis for more informed consumer choice. We add to the emerging literature on this matter with a survey study among the general public in Turkey. For the degree of absolute consumption, we found a negative relationship with life satisfaction, savers being happier than spenders. For kinds of consumption, we found mostly negative correlations with life satisfaction, in particular with housing expenses. The only positive correlation with life satisfaction was expensed on eating out and vacations. These results illustrate that the relationship between consumption and life satisfaction is more complex and variable than is commonly assumed.
Consumption and happiness: an introduction
International Review of Economics, 2015
While abundant evidence is available about the relationship between income and happiness, relatively little is known about the effects of the level and composition of consumption on happiness. The present paper provides an introduction to this special issue devoted to Consumption and Happiness. We start by discussing different concepts and measures of happiness. We then briefly review the existing literature on consumption and happiness. Finally, we introduce the papers contained in this special issue by outlining their respective contributions.
Title: Money Buys Happiness When Spending Fits Our Personality
2016
In contrast to decades of research reporting surprisingly weak relationships between consumption and happiness, recent studies suggest that money can indeed increase happiness if it is spent the “right way” (e.g. on experiences or on others). Drawing on the concept of psychological fit, we extend this research by arguing that individual differences play a central role in determining the “right” type of spending to increase wellbeing. In a field study with over 76,000 bank transaction records we find that individuals spend more on products which match their personality and that those whose purchases match their personality report higher levels of life satisfaction. This effect of psychological fit on happiness was stronger than the effect of individual’s total income or their total spending. A follow-up experiment showed a causal effect: Personality-matched spending increases positive affect. In summary, when spending matches personality, it appears that money can indeed buy happiness.
Prosocial Spending and Happiness: Using Money to Benefit Others Pays Off
Current Directions in Psychological Science, 2014
Although a great deal of research has shown that people with more money are somewhat happier than are people with less money, our research demonstrates that how people spend their money also matters for their happiness. In particular, both correlational and experimental studies have shown that people who spend money on others report more happiness. The benefits of such prosocial spending emerge among adults around the world, and the warm glow of giving can be detected even in toddlers. These benefits are most likely to emerge when giving satisfies one or more core human needs (relatedness, competence, and autonomy). The rewards of prosocial spending are observable in both the brain and the body and can potentially be harnessed by organizations and governments.
Happy Savers and Happy Spenders
In this study, we approach the relation between money and happiness. We concentrate on two functions of money (saving and spending) and explore how happiness is affected by them. We compare participants from two different countries with a similar level of wealth and development (Germany and the USA) and explore how cultural differences may affect the individuaì s behavior regarding money and happiness. We also explore how social status affects happiness and how this differs between Americans and Germans. We collect data from a computer based experiment which was completed by a total of N=105 participants. With a set of standard questions, we measure the participants`risk aversion, time preference, competitiveness and their self-classified demand for saving and spending. Our main findings are: First, German self-classified savers who save and American self-classified spenders who spend are happier; Secondly, people receive happiness not only from absolute wealth, but also from relative wealth in comparison to others; Thirdly, relative wealth (social rank) is significantly more important to Americans than to Germans.
Journal of Marketing Research, 2009
A central question in consumer and happiness research is whether happiness depends on absolute or relative levels of wealth and consumption. To address this question, the authors evaluate a finer level than overall happiness and distinguish three specific types of happiness: with money, with the acquisition of an item, and with the consumption of an item. They find that happiness with money and with acquisition is relative and that happiness with consumption can be either absolute or relative, depending on whether the consumption is inherently evaluable or not. Including both lab and field data, this research yields implications for how to increase consumer happiness from one generation to the next.
The Role of Money in the Pursuit of Happiness
International Journal of Humanity Studies (IJHS) , 2023
Whosoever says money cannot buy you happiness does not know where to shop. Your stand concerning this statement will depend on your level of income and the importance of money for your well-being. Since some might argue that having money is not everything, it then raises the question of what does it take to be happy? What is the government's role in this endeavor? And how can happiness be sustained? This study presents some principles about money and happiness. It suggests that while being rich might not necessarily be the main or only path to happiness, having a higher income will guarantee access to homes in safer neighborhoods, better healthcare, and nutrition, provide access to higher education for your family, give you a sense of fulfillment, work satisfaction, and more leisure time. Note that how you spend, save, and think about money shapes how much joy you get from it. Above all, happiness is a subjective experience. It is about the satisfaction you derive from the way your life is going. Happiness is about personal freedom to make important life choices, such as shaping your life the way you want it.