Related Experiment Video
Updated: Jun 4, 2025
08:24
The Joint Effect of Social Comparison and Social Distance on Evaluation of Intertemporal Choice Outcomes in Event-related Potential Studies
Published on: August 25, 2023
634
How spending decisions shape happiness in everyday life.
Säde Stenlund1,2,3,4, Yingchi Guo5, Jason Rights5
1Department of Psychology, University of British Columbia, Vancouver, BC, Canada. sade.stenlund@utu.fi.
Communications Psychology
|December 20, 2024
Summary
Spending money on experiences and education boosts happiness. Emotional spending benefits vary by country income, but happy spending improves well-being long-term.
Area of Science:
- Psychology
- Behavioral Economics
- Cross-cultural Studies
Background:
- Everyday spending decisions significantly impact emotional well-being.
- Previous research has primarily focused on specific spending categories like experiences.
Purpose of the Study:
- To investigate the emotional consequences of diverse spending choices across a multinational sample.
- To explore how different types of purchases influence happiness and subjective well-being.
Main Methods:
- A dataset of 200 participants from 7 countries was analyzed.
- Participants received $10,000 USD and reported happiness levels from various purchases.
- Longitudinal assessment of subjective well-being at 3 and 6 months post-spending.
Main Results:
- High happiness derived from purchasing experiences and education.
- Spending on gifts, housing, debt, and time-saving services showed income-dependent emotional benefits.
- Spending money in ways that increased happiness correlated with improved long-term subjective well-being.
Conclusions:
- Spending choices have profound emotional consequences, with varied benefits across cultures.
- Education and experiences are key drivers of happiness from spending.
- Aligning spending with personal happiness leads to sustained improvements in overall well-being.
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