The study, funded by an anonymous donor couple and an organization, examined the happiness impacts of a one-time $10,000 US windfall spent by 200 participants across seven countries, on 3,225 purchases ranging from smartphones to housing. Participants recorded their purchases and rated their happiness levels. Six months later, the researchers reassessed their overall well-being, revealing intriguing cultural and economic differences in what brings people joy.
“Our research shows that spending on gifts and time-saving services, such as paying for house cleaning or take-away food, led to a greater boost in happiness for those in wealthier nations,” said Dr. Säde Stenlund, the first author of the research. “On the other hand, paying off debt or paying for housing was perceived as bringing less happiness in the wealthier countries.”
The study illustrates how practical and cultural realities shape the happiness people derive from spending.
While purchases such as donations and experiences increased happiness worldwide, other types of purchases had more specific impacts depending on the country. Participants in wealthier nations like Canada, the U.S., and the U.K. found more joy in gifts and time-saving services.
Spending habits and global happiness
In contrast, participants in lower-income nations such as Kenya and Indonesia valued investments in basic needs and financial stability more. “In countries with greater financial stress, paying off significant debt or securing a home is naturally more impactful,” said Dr. Stenlund, a postdoctoral researcher at Harvard’s T.H. Chan School of Public Health.
“However, it’s also remarkable how donations, buying experiences, or investing in education and personal care brought similar happiness to individuals globally.”
Key discoveries from the study include:
– Spending on gifts brought high levels of happiness globally but had a stronger emotional impact in wealthier nations. – Housing and debt relief brought less happiness in wealthier countries. – Time-saving purchases like hiring help or cutting commuting time were appreciated more in high-income nations, where time scarcity is often a stressor.
– Donations, experiences, education, and personal care brought similarly high levels of happiness across the globe. The findings offer a nuanced perspective on how to maximize happiness through daily spending and suggest that financial advice should be tailored to cultural and economic contexts. Happiness is shaped not just by how much money we have, but by how wisely we align spending with our unique circumstances and needs.
