According to research the question of happiness tied to money is a complicated one. We have heard it said, “money doesn’t buy happiness”. Likewise, we’ve probably also heard people disagree with that. The research on this is, well, not very straight forward.
Researchers often ask two questions in their studies on money and happiness. One, does money contribute to the emotional well-being of an individual?. Two, does money contribute to an individual’s life evaluation? Let’s understand the terms “emotional well-being” and “life evaluation”. Emotional well-being refers to the emotional quality experienced by an individual on a daily basis. This can be the joy we feel when hugged by a loved one, the stress when getting ready to sell a home, or the sadness we feel when we lose someone or something special to us. Life evaluation has more to do with reflection of our lives. In other words, the thoughts one has about their life when asked to reflect on it.
Research suggests that in terms of emotional well-being money can’t buy happiness. When it comes to health, the quality of care we receive, or loneliness money does very little to “buy” our happiness. There is, however, research to suggest that money can “buy” our happiness when it comes to life evaluation or when it can serve to meet both our needs and our material wants.
What does this have to do with Christmas and kids? As adults we have an influence on kids. Whether we are a parent, family member, or community member they look to us as role models and learn from our interactions in the world. This includes our dealings with money. The relationship adults close to kids exhibit with money is highly influential in the lives of children. Upwards of 40% of Americans take on debt to pay for Christmas. One in three of us will accrue more than $1,200. This translates to stress for many adults. It’s even more challenging if you watch a child open a gift that they don’t like.
Here are some ideas to help guide your gift shopping this year and hopefully keep you out of that 40%:
- Ask yourself if and how the gift you are buying can meet both a want and a need.
- Ask yourself if and how the gift enhances the emotional well-being of both the child and you as the giver.
- Ask yourself if giving this gift will create more stress on your family. If the answer is yes, is there a less expensive alternative?
- Ask where you gift can be an experience you enjoy with your child instead of a material possession. You can then budget for an inexpensive souvenir that helps your child remember that special experience you shared together.
Have a blessed holiday season filled with emotional well-being that leads to more fulfilling life evaluations.
1. Kahneman, D., & Deaton, A. (2010). High income improves evaluation of life but not emotional well-being. Proceedings of the National Academy of Sciences, 107(38), 16489–16493. https://doi.org/10.1073/pnas.1011492107 2. Jebb, A.T., Tay, L., Diener, E. et al. (2018). Happiness, income satiation and turning points around the world. Nat Hum Behav 2, 33–38. https://doi.org/10.1038/s41562-017-0277-0 3. Paul, K. (2018, January 2). Here’s how long it will take Americans to pay off their Christmas debt. Market Watch. https://www.marketwatch.com/story/heres-how-long-it-will-take-americans-to-pay-off-their-christmas-debt-2017-12-29
