The research, supported by a couple who chose to remain anonymous along with an organization, explored the effects on happiness of a one-off $10,000 US financial gain utilized by 200 individuals across seven nations, covering 3,225 purchases that included everything from smartphones to housing. Participants documented their spending and assessed their levels of happiness. Six months later, the researchers evaluated their overall well-being again, uncovering fascinating cultural and economic distinctions in the sources of joy.
“Our findings indicate that expenditures on gifts and services that save time, like hiring cleaning services or ordering takeout, resulted in a more significant increase in happiness for individuals from wealthier nations,” explained Dr. Säde Stenlund, the lead author of the study. “Conversely, utilizing funds to eradicate debt or invest in housing was viewed as less uplifting in more affluent countries.”
This research highlights how cultural and practical aspects influence the happiness associated with different types of spending.
While expenditures on charitable contributions and experiences universally enhanced happiness worldwide, the effects of other purchases varied significantly based on the country. Participants from more affluent countries like Canada, the United States, and the United Kingdom reported experiencing greater satisfaction from gifts and time-saving services.
Spending behaviors and international happiness
On the other hand, participants from lower-income countries such as Kenya and Indonesia prioritized spending on fundamental necessities and achieving financial security. “In regions experiencing more significant financial pressure, paying down major debts or securing stable housing is understandably more significant,” noted Dr. Stenlund, a postdoctoral researcher at Harvard’s T.H. Chan School of Public Health.
“However, it is also noteworthy that charitable donations, experiential purchases, and investments in education and self-care provided comparable happiness to people across the globe.”
Important insights from the study include:
– Allocating funds for gifts consistently resulted in substantial happiness globally but had a more pronounced emotional effect in wealthier nations. – Housing support and debt repayment were associated with lower happiness levels in affluent countries. – Purchases that save time, such as hiring assistance or reducing commute times, were especially valued in high-income countries, where time scarcity often creates stress.
– Charitable giving, experiential spending, educational investments, and self-care contributed similarly high happiness levels around the world. These findings provide a nuanced understanding of how to optimize happiness through daily expenditures and suggest that financial guidance should be customized to fit cultural and economic backgrounds. Our happiness is influenced not only by our financial resources but also by how thoughtfully we tailor our spending to our unique situations and requirements.
