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Does money really make us happy?
Thanks for asking!
According to a 2014 study by the Pew Research Center, people in wealthier countries are happier on average, but only up to a point.
Even in so-called emerging countries like Indonesia, Pakistan and Turkey, there was a correlation between rising wealth levels and the percentage of happy people.
Interestingly though, in well-off nations, people don't necessarily attribute their happiness directly to money.
The same Pew Research Center study found that health, children's education, safety from crime, owning a home and having a fulfilling job were all more important than financial security.
Of course, those factors are all somewhat connected to the economy.
So is the old saying, money can't buy happiness, in fact wide of the mark?
Where did that saying come from to start with?
The phrase has origins in ancient wisdom and philosophical musings and, while its precise inception remains uncertain, it's a sentiment which resonates across many cultures.
In the 18th century, the words of renowned philosopher Jean-Jacques Rousseau reinforced the notion.
He said money buys everything except morality and citizens.
Rousseau's insightful words, combined with biblical teachings and philosophical perspectives, helped popularize the saying.
It's rooted in the belief that true happiness arises from emotional fulfillment, meaningful relationships and personal satisfaction, which transcend mere material wealth.
And even in recent years we've seen some prominent figures say that wealth and well-being aren't as intertwined as we might think.
Lord Richard Layard is an economist and former advisor to Tony Blair.
In 2016, he authored a study entitled Origins of Happiness, in which he suggested that increased wealth doesn't really equate to improved morale.
He argued that policymakers should focus their efforts on building a robust mental health support system rather than tackling poverty directly.
That was based on estimations that eliminating depression and anxiety would reduce misery by 20%.
But is money still a key factor in happiness?
Absolutely.
For instance, even though salaries have steadily increased over the past 50 years, the cost of living has also surged.
So current generations aren't necessarily better off than their predecessors.
A 2022 experiment led by researcher Matthew Killingsworth from the University of Pennsylvania also brought a new perspective.
His team gathered real-time data from 33000 Americans who had to record their daily satisfaction levels on an app.
A previous study from 2010 had identified 75000 per year as the income threshold where happiness levels off, but the Killingsworth study found daily happiness continued to increase steadily, with rising income well beyond that figure.
Killingsworth himself explained it by saying that having a higher income means a person has less stress factors to deal with.
Hence the well-off can more easily focus on their wellbeing and feel more in control of their lives.
However, a word of caution.
Don't mistake money for success.
That's where satisfaction can sometimes remain elusive, even for people with a hefty bank balance.
There you have it.
Now you know whether money really makes us happy.
In under three minutes, we answer your questions and help you understand the true meaning behind the trends, concepts and acronyms that are making headlines.
Listen along and you will really know for sure.
