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Flickr / Jesus Solana
The answer to, "Can money buy happiness?" isn't simply "yes" or "no."
2014-08-20
It's, "depends how you spend it."
Miriam Tatzel, PhD, of Empire State College, recently presented an overview of consumer behavior and happiness at The American Psychological Association's annual conference.
In it, she examined the link between consumerism, happiness, and even the environmental impact of our buying decisions.
She found that the same things that benefit our mindset may improve our surroundings, as well.
Dr. Tatzel allowed us to republish her slides here.
Dr. Tatzel found that many of things that increase our happiness are also good for the environment.
Miriam Tatzel / Empire State College
While we regard an increase in consumer spending as a good thing for the economy, it's not such great news for the environment, or for our individual levels of satisfaction.
Miriam Tatzel / Empire State University
All of that spending isn't making us happy. Why not? The field of Positive Psychology has been investigating this very question.
Miriam Tatzel / Empire State University
The acronym CAMPER stands for the research-proven factors that contribute to happiness: Competence, Autonomy, Meaning, Pleasure, Engagement, and Relationships.
Miriam Tatzel / Empire State University
The term "hedonic treadmill" describes the human tendency to get used to what we have, no matter how nice it is, and strive for more. Getting more, then, doesn't sustain our happiness levels.
Miriam Tatzel / Empire State University
"The larger the gap between what one wants and what one has, the greater the dissatisfaction," said Dr. Tatzel in an APA press release. "Less materialism equals more happiness."
Miriam Tatzel / Empire State University
While buying "things" might not make us happier, spending on experiences instead might do the trick.
Miriam Tatzel / Empire State University
The Gini Coefficient, a method often used to measure income inequality, finds that more equal societies are happier. A 2010 study found that in the U.S., happiness levels off at about $75,000 annual income — anything more is superfluous.
Miriam Tatzel / Empire State University
Happiness isn't just about the numbers — it's about our personalities, too. People who cultivate their talents and relationships to find satisfaction may be less likely to rely on things and purchases to make them happy. Trying to keep up with the Joneses only leads to misery.
Miriam Tatzel / Empire State University
To increase your likelihood of being happy (with a side of environmental benefits), Dr. Tatzel says you'll want to steer clear of materialism, value your experiences over your purchases, and take your satisfaction from yourself rather than others.
Miriam Tatzel / Empire State University
Learn more about how your brain affects your money ...
Libby Kane was a personal finance expert who has reported and edited stories about money for more than 10 years. She previously held the Certified Financial Education Instructor (CFEI) certification issued by the National Financial Educators Council.Experience She has written and edited articles on everything from investing tips to model budgets and has interviewed dozens of authors, financial planners, and early retirees to share their advice, experiences, and insights with a global audience. Before joining Business Insider in 2014, she was an associate editor at LearnVest, a personal finance site to help women learn about money. Her work has appeared on sites such as MSN, AOL, Forbes, Slate, and The Street.Her team at Business Insider has tackled projects including:• Women of Means, a series about women taking control of their finances• Inside the Racial Wealth Gap, an exploration of the causes, effects, and potential solutions of the racial wealth gap in the US (finalist, Drum Award, "Editorial Campaign of the Year," 2021)• Strings Attached, a series of essays from people who have left insulated communities and how that journey affected their relationship with money• Master Your Money, a year-long guide for millennials on how to take control of their finances (first runner up, Drum Award, "Best Use of Social Media," 2022)• The Road to Home, a comprehensive guide to buying your first house (silver award winner, National Association of Real Estate Editors, "Best Multi-Platform Package or Series – Real Estate," 2022)Libby believes in one universal truth about money: Advice is never for everyone. The best strategies, tools, and products depend on your preferences, financial situation, history with money, and goals.ExpertiseHer expertise includes:• Behavioral finance• Early retirement• Budgeting• Saving moneyEducationLibby holds a bachelor's degree from Wellesley College.Outside of personal finance, Libby enjoys reading, baking, and walking her dog.
