Why spending money can make you happy
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A string of studies show that spending your income can really boost your mental wellbeing.
By Marina Gerner
Those who say money can’t buy happiness may not be spending it the right way. A budding field of behavioural science is analysing how our spending decisions influence our well-being.
We explain how money can buy happiness – if you follow the right principles.
One morning, people on the streets of Vancouver were asked to take part in an experiment by Harvard Business School researchers led by professors Elizabeth Dunn and Michael Norton. Those who agreed to take part received an envelope containing either $5 (£4) or $20 (£15).
They were asked how happy they were and instructed to spend the money by 5pm. Crucially, half of the group was told to spend it on themselves, while the other half were told to donate to charity or buy a present or spend it on somebody else.
Measurably happier
That evening, each respondent received a phone call from the researchers. They were was asked ho...
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