Money and Happiness: Problems Understanding Its Dynamic Relationship

Money and Happiness: The Problems of Understanding its Dynamic Relationship The want of money is the root of all evil. - Samuel Butler- Our society holds a taboo when it comes to explicitly speaking of the desire for money. However, at the same time our behaviors implicitly show us the extent of this desire. Many people spend much time analyzing the stock market for their next bid, millions of people buy lottery tickets looking for their big break, and many people fight with their siblings over their dead parents’ fortune. And the reason we so desperately pursue the accumulation of wealth is because we believe in its positive influence. We believe it will change our lives into a better one. We think it will make us happier. (Campbell, 1981) However, this is an issue still in question and an important one especially for counseling psychology. In this field, the relationship between money and life satisfaction is essential due to its relevance to career counseling. Considering that a jobs’ financial reward and hence its socioeconomic status is influential in career orientation for some people, the clarification of such relationship becomes crucial. And in accord to the importance of this issue, there has been abundant research relating to it. However, the results seem to be mixed and confusing. The purpose of this paper is to point out the shortcomings of previous works on this issue and additionally, to provide a new scope into which will be a guide for further research on this issue. Problems in samples and variables Previous studies have attempted to see if money increases happiness by looking into the lives of those who have a lot of money. But some of these studies seem to have missed out on a vital factor, sample size. In a study of some of the wealthiest people in the United States, Diener et al. (1985) found the happiness levels of these people to be only slightly above average than that of people with regular incomes. However,

References: Brickman, P., Coates, D., & Janoff-Bulman, R. (1978). Lottery winners and accident victims: Is happiness relative? Journal of Personality and Social Psychology, 36, 917-927. Campbell, A. (1981). The sense of well-being in America. New York: McGraw-Hill. Clydesdale, T.T. (1997). Family behaviors among early U.S. baby boomers: Exploring the effects of religion and income change, 1965–1982. Social Forces, 76, 605–635. Cummins, R. A. (2000). Personal income and subjective well-being: A review. Journal of Happiness Studies, 1, 133–158. Diener, E., & Biswas-Diener, R. (2002). Will money increase subjective wellbeing? A literature review and guide to needed research. Social Indicators Research, 57, 119–169. Diener, E., Horwitz, J., & Emmons, R. A. (1985). Happiness of the very wealthy. Social Indicators, 16, 263—274. Johnson, W., & Krueger, R. F. (2006). Journal of Personality and Social Psychology, 90(4), 680–691. Myers, D. G. (2000). The funds, friends, and faith of happy people. American Psychologist, 55, 56–67. North, R. J., Holahan, C. J., Moos, R. H., & Cronkite, R. C. (2008). Family Support, Family Income, and Happiness: A 10-Year Perspective. Journal of Family Psychology, 22(3), 475-483. Schwartz, B. (2004). The paradox of choice: Why more is less. New York: Ecco.