Money brings it

Young people today answer the question of whether money brings happiness differently than their parents. The paean to money says that material wealth means the same around the world: There is also a widening generation gap in terms of attitudes toward money and prestige between "digital natives" and older generations.

Money brings it

It seems only natural that happiness should flow from having more money. More money means you can have what you want and do what you want. The house you dream of? The new car you desire? Here are the keys. The freedom to enjoy your favourite pastimes?

So the puzzle is this: Some have even suggested that this moderate connection might be exaggerated. In reality money might have very little to do with happiness at all.

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Acquiring things like houses and cars only have a transient effect on happiness. Again, this means that despite considerably more luxurious possessions, people end up no happier. When people think about earning more money they probably imagine they would use the money on recreational activities.

In fact, to earn the money, they have to spend more time at work, and commuting to and from work. People with more money and status are just more satisfied with their lives, not happier.

Money brings it

Nobel-prize winning psychologist Daniel Kahneman and colleagues put forward the idea that the reason people continue to think money makes them happier is that chasing it leads to conventional achievements Kahneman et al. Conventional achievements include things like getting that coveted promotion or being able to afford that big house — in other words things that say loud and clear: So, when people ask themselves whether money brings happiness, they immediately think of the big promotion and the big house.

They conclude that because they have these things, they must be happy. Well, psychologists have a trick up their sleeves.

That trick is called moment-by-moment sampling. The conventional way of asking people about their happiness is using an overall measure. Higher earners were more likely to experience intense negative emotions and greater arousal during the day.

In one example of this type of research workers at 10 different sites in a variety of different jobs were asked how happy they were every 25 minutes over a whole workday Schnall et al.

Worse, higher earners were more likely to experience intense negative emotions and greater arousal during the day. These types of findings have also been seen in other studies on how earnings affect happiness.

The Money-Empathy Gap

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