[PDF] DOI: 10.1126/science.1150952 1687 (2008); 319 Science et al





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Money Doesnt Buy Happiness… Or Does It? A Reconsideration

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DOI: 10.1126/science.1150952 1687 (2008); 319 Science et al

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  • Why money can't buy happiness?

    The saying means that true happiness comes from within, not from possessions that can be bought. Beyond the ability to pay your bills, happiness is a state of mind that is short-lived when you base it on physical objects and the numbers in an investment portfolio.
  • Their research was based on survey data from 1000 people in the US who had been surveyed daily between 2008 and 2009 about their levels of happiness. It found that the more money someone makes, the happier … they are, but the curve flattens between $60,000 and $90,000 a year.

DOI: 10.1126/science.1150952

, 1687 (2008); 319Science et al.Elizabeth W. Dunn,

Spending Money on Others Promotes Happiness

www.sciencemag.org (this information is current as of April 14, 2008 ): The following resources related to this article are available online at version of this article at: including high-resolution figures, can be found in the onlineUpdated information and services, can be found at: Supporting Online Material , 2 of which can be accessed for free: cites 11 articlesThis article

Psychology

: subject collectionsThis article appears in the following in whole or in part can be found at: this article permission to reproduce of this article or about obtaining reprintsInformation about obtaining registered trademark of AAAS.

is aScience2008 by the American Association for the Advancement of Science; all rights reserved. The title

CopyrightAmerican Association for the Advancement of Science, 1200 New York Avenue NW, Washington, DC 20005.

(print ISSN 0036-8075; online ISSN 1095-9203) is published weekly, except the last week in December, by theScience

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finelyregulatedbyc orrelatedactivitiesina neuronalnetworkand maycon solidatenearby stimulatedsynapsesby autocrineorp aracrine mechanisms.BDNF actionwasselectiveont he spinesthatshowedimmedi ateenlar gement, whichmay actasthestructuralt agfors elective trapping( 26)oftheprotein-syntheticmachinery (11,27)andthe captureof plasticityproteins (2,28)forlong-termspine-headenlargement.

Thus,BDNFactsa sanassociati vemesseng erfor

theconsolidation ofsynapticplasticity,an dthe protein-syntheticprocesscan regulatedendritic structuresatth elevel ofsingles pines.

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29.This workwassupported bygrants-in-aid fromMEXTof

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SupportingOnlineMaterial

MaterialsandMeth ods

Text

Figs.S1to S7

References

12November2007; accepted21January 2008

Publishedonline28 February2008;

10.1126/science.1152864

Includethisinformati onwhenciting thispaper.

SpendingMoneyon Others

PromotesHappiness

ElizabethW.Dunn,

1 *LaraB.Aknin, 1

MichaelI. Norton

2 Althoughmuch researchhasexamined theeffectof incomeonhappiness, wesuggestthat howpeople spendtheirmoney maybeat leastasimportant ashowmuch moneytheyearn. Specifically,wehypothesized thatspendingmoney onotherpeople mayhave amorepositive impactonhappiness thanspendingmoney ononeself.Providing convergingevidencefor this hypothesis,wefound thatspendingmore ofone'sincomeon otherspredictedgreater happinessboth cross-sectionally(ina nationallyrepresentativesurvey study)andlongitudinally (inafield studyof windfallspending).Finally, participantswhowere randomlyassignedto spendmoneyon othersexperiencedgreater happinessthanthose assignedtospend money onthemselves. C anmoneybuy happiness?A lar gebody ofcross-se ctionalsurveyresearchhas demonstratedthatincome hasareliable, butsurprisinglyw eak,eff ectonhappinesswithin nations(1-3),particularly oncebasicneedsa re met(4).Indeed,a lthoughreal incomeshave surgeddramaticallyinrecentdecades, happiness levelsha veremainedlargelyf latwithindevel- opedcountries acrosstime(5).Oneo fthe most intriguingexplanationsfor thiscounterintuitive findingisth at peopleoftenpourtheirincreased wealthintopu rsuitsthatprovidelittle intheway oflastingh appiness ,suchaspurchasingcostly consumergoods(6).Anemer gingcha llenge,then, isto identif ywhetherandhowdisposa bleincome mightbeusedto increase happiness.

Ironically,thepotentialf ormoneytoincrease

happinessmaybes ubvertedbyth ekindsof choicesthatthink ingaboutmoneypromotes ;the merethoughtofhavingmoneymakespeopleless likelytohelp acquaintances, todo natetocharity, orto chooseto spendtime withothers(7),pre- ciselythekindsofbehaviorst hat arestrongly associatedwithhappiness(8-12).Atthe same time,a lthoughthinkingaboutm oneymaydrive peopleawayf romproso cialbehavior,moneycan alsoprovide apowerfulv ehiclefor accomplish- ingsuch prosocialgoals.We suggestthatusing moneyinthi sfashion - investingincomeino thers ratherthanoneself - mayhavem easurablebene- fitsfor one'sownhappiness.

Asaninitial testo ftherelation betweenspend-

ingchoices andhappiness,we askeda nationally representativesampleof632 Americans(55% female)to ratetheirg eneralhappiness,toreport theirannual income,andtoestimate howmuch theyspent inatypical monthon(i)billsand expenses,(ii)giftsfor themselves,(iii)giftsfor others,and(iv) donationstocharity(13).The firsttwocategorieswere summedtocreate an indexofp ersonals pending[mean(M)=$1713.91,

SD=189 5.65],a ndthelattertwoc ategorieswere

summedtocreate aninde xofprosocial spen ding (M=$145.96,SD=306.06).Enteringtheper- sonalandproso cialspendi ngindicessimultaneous- lyin toaregressio npr edictinggeneralhappiness revealedthatpers onalspending wasunrelatedto happiness(standardizedre gressioncoefficientb= -0.02,NS),but higherprosoc ialspend ingwas associatedwithsignificantlygreat erhappine ss (b=0.11,P<0.01).Whenweincludedincome inth isregressio n,wefoundthattheeffectsof income(b=0.11,P<0.01)andprosocial spending(b=0.10,P<0.03)wereindependent andsimilar inmagnitude,whereasp ersona l spendingremainedunrela tedtohappiness(b= -0.04,NS).Although thecorrelational nature ofthisdesign precludescausalinferences, this studyprovidesinitial evidencethathow people spendtheirmon eymaybeasimpor tantfortheir happinessashowmuch moneytheyearn - and thatspendingmoney onothersm ightrepresent a moreeffective routetohappiness thanspending moneyononeself (13).

Ifth isinterpreta tioniscorrect,thenpeople

whor eceiveaneconomicwindfalls houldexperi- encegrea terhappinessafterreceivin gthewindfall iftheyspend it onothers ratherthanthemselves, evencontro llingforhappinessbeforethewin dfall.

Wete stedthisprediction byexamining thehap-

pinessof16 employeesbeforeand afterthey receivedap rofit-sharingbonus fromtheircompa- ny(13).Onem onthbefor ereceivingthis bonus (M=$4918.64,SD=1816.98),theemployees reportedtheirgeneralhappinessas wellastheir annualincome.Approximately 6to 8weeksafter receivingthebonus, participants againreported theirgeneralhappiness andthen reported what percentageoftheirbonus theyhad spenton(i) billsandexpenses, (ii)re ntormortgage,(iii)buy- ings omethingforthemselves,(iv)buyingsome - thingfor someoneelse,( v)donating tocharity, and(vi) other.Thefirst threecategorieswere summedtocreatean indexo fpersonalspending 1 DepartmentofPsychology,2136W estMa ll,theUniversityof

BritishColumbi a,Vancouver,BCV6T1Z4,Ca nada.

2

Market-

ingUnit, 189Morgan Hall,HarvardBusiness School,Soldiers

FieldRoad,Bosto n,MA02163,USA.

*Towhomcorrespondence shouldbeaddressed. E-mail: edunn@psych.ubc.ca www.sciencemag.orgSCIENCEVOL31921 MARCH20081687

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on April 14, 2008 www.sciencemag.org

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(M=63.44,SD=38.20),andthefourthandfifth categorieswere summedtoc reateanindexof prosocialsp ending(M=12.19,SD=18.35).

EnteringTime1happine ssandourtwospe nd -

ingind icesintoaregressionpredicting Time2 happinessrevealedthatprosocial spendingwas theonlys ignificant predictorofhappinessat

Time2(b=0.81,P<0.02).Withincomein-

cludedas anadditionalpredictor inthisregression (b=-0.03,NS),t heeffectof prosocialspending remainedsignifi cant(b=0.96,P<0.02).Simi- larly,theprosocialsp endingef fectwassignificant (b=0.81,P<0.03)whencontrollingforbonus amount( b=0.00,NS).Thus,employeeswho devotedmoreofthei rbonustoprosoc ialspend ing experiencedgreaterhappiness afterreceivingthe bonus,andthe manneri nwhich theyspentthat bonuswasa moreimportant predictoroft heir happinessthanthes izeofthebonus itself(13). evidencethatspending onothers maypromote happiness,we nextdemonstratedthecausalim- pactofpr osocialspend ing,usingexperimental methodology(13).Participan ts(N=46)rated theirhappinessin themorn ingand thenw ere givenan envelopethatcontained either$5or $20,whichthe ywereaskedto spendby5:00 p.m.thatday .Participantsrandomly assignedto thepersonal spendingconditionwerei nstructed tospend themoneyo nabill,anexpense,ora gift fort hemselves,whereasparticipantsass ignedto theprosocialspendin gcondition wereinstructed tospendt hemoneyon agiftforsomeoneelse or charitabledonation. Participantswerecalledafter

5:00p.m.that dayandagain repor tedtheir hap-

piness.Wesubmitted postwindfallhappinessto a

2(windfallsize:$5versus$20)

2(spending

direction:pers onalversusprosocial)between- subjectsanalysisof covariance(ANCOVA), with prewindfallhappinessinclud edasa covariate.

Thisanalysi srevealedasignificantma ineffect

ofs pendinginstructions[F 1,41 =4.39,P<0.04, effectsizeestimate(ŋ p 2 )=0.10],wherebypartic- ipantsinthe prosocialspending condition( M=

0.18,SD=0.62) reportedgreaterpostwindfall

happinessthandidparticipantsi nthe personal spendingcondition(M=-0.19,SD =0.66).

Neitherthem aineff ectofwin dfallsiz e(F

1,41

0.09,NS)northe Windf all Size

Spending

Directioninteraction(F

1,41 =0.12,NS)approached significance.Theseexperimentalresu ltsprovide ingmoney onotherspromoteshappinessmore thanspendingmo neyono neself.

Inmovingaway fromthe traditionalf ocuson

incometowardanex aminationofspending choices,ourperspectivedovetailsw ithrecent happiness.Accordingt oLy ubomirskyetal.(8), thehi storicalfocusonlifecircumstances(e.g. , income,gender,andr eligiousaffiliation)aspre- dictorsof happinessmay besomewhatmis- placed;becausepeople readilya dapttothe stable circumstancesoftheirlives,circumstantialfactor s tendtohave ratherli mitedl ong-termef fectson happinesslevels. Thus,intentionalactivities - practicesinwhich peopl eactively andeffortfully choosetoengage - mayrepr esentamoreprom- isingrouteto lasting happiness.Supportingthis premise,ourwor kdemonstrates thathowpeople choosetospen dtheirmoneyis atleastasim- portantashow muchmoneyt heyma ke.

Finally,despitetheobs ervable benefitsof

prosocialspending,our participantsspentrela- tivelylittleo ftheir incomeonprosocial ends; participantsin ournationals urvey,for example, reporteddevotingm oret han10timesasmuch moneyf orpersonalasforprosocial spending eachmonth.Although personalspending isof necessitylikelyto exceedprosocials pending for mostNorthAmericans, ourfindingssuggestthat veryminoralterations inspendingallocations - aslittleas $5inour finals tudy - maybe suf- ficientto producenontrivialgainsin happiness onagiven day. Why,then, don'tpeoplemake thesesmall changes?Whenweprovided descrip- tionsofth efour experimentalconditionsfrom ourfinals tudytoa newsetofs tudentsatt he sameun iversity(N=109)andaskedthemto selectthecondition thatwouldm akethem hap- ipantswer edoublywrongaboutthe impacto f moneyonhappines s;w efoundthatasignificant majoritythought thatpersonals pending(n=69) wouldmake themhappierthanpr osocial spending(n=40)(P<0.01)andthat$20(n=

94)would makethemhappier than$5(n=15)

(P<0.0 005).Giventhatpeopleappea rtoover- looktheben efitsofpro socialspending,policy interventionsthatpromoteprosocialspending - encouragingpeopletoinvestincome inothers ratherthaninthemselv es - maybewort hwhile inth eservice oftranslatingincreasednatio nal wealthintoincreas ednational happiness.

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materialonScienceOnline.

14.Thiswork wasfundedby aHamptonResear chGrantto

thefirstauthor. Wethank T.Rogers,S. Shababiand J.Berettafo rdata collection;J.Biesanz,I. DarNimrod,

D.Gilbert,S. Heine,J.Helliwe ll,S.Lyubomirksy,

A.McConnell,V. Savalei,B. Simpson,andT. Wilsonfor

helpfulinput;an dJ.Goldshineforhisinvalua bleassistance.

SupportingOnlineMaterial

MaterialsandMethods

Figs.S1to S6

TablesS1and S2

References

25September2007; accepted12February 2008

10.1126/science.1150952

21MARCH2008 VOL319SCIENCEwww.sciencemag.org1688

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