Does Money Buy Happiness?

Running Head: DOES MONEY BUY HAPPINESS 1

Does Money Have the Ability to Purchase Happiness?

[Student Name]

Quinsigamond Community College

Author Note

This paper was prepared for Sociology 101, taught by Professor McMaster

DOES MONEY BUY HAPPINESS? 2

Abstract

This essay will examine the correlation between money and happiness. Most people have

probably heard the phrase: “Money can’t buy happiness” or similar phrases regarding money and

happiness. There are multiple aspects to consider when analyzing this statement and its reality.

This paper will interpret the extensive research regarding this topic and will provide the reader

with an answer to this question. They will discover that the correlation between money and

happiness exists. However, the strength of the correlation depends on how people spend their

money. By the end of this essay, people will have been introduced to three significant ways in

which money has the ability to purchase happiness.

Keywords: Money, Happiness, Subjective Well-Being (SWB), correlation

DOES MONEY BUY HAPPINESS? 3

Hypothesis

Although much of people’s time revolves around money, people often predict that money

is unable to purchase happiness. However, by analyzing extensive research and studies, they

could have an alternate view regarding this idea. People should discover some ways in which

money can buy happiness. People should see the strong correlation between money and

happiness for people unable to satisfy their physiological needs, and hopefully notice the much

weaker correlation for people who choose to spend their money on themselves and/or

materialistic goods rather than experiences.

Method

The method of research used to approach this particular research question was the

existing sources method. More specifically, content analysis was primarily utilized for the

research presented in this essay. The reason for this methodology is due to the fact that it uses

unobtrusive measures and there is already an abundance of research, experimentation, and data

regarding this topic. Due to the vast amount of research, experimentation, and data regarding this

topic, content analysis became useful in identifying common key components within different

research results. By using existing sources and content analysis as the methodology of this essay,

there were many ideas that were able to be sorted through until arriving at the most common and

valid results.

Does Money Have the Ability to Purchase Happiness?

Ever since the transition from trade and bartering to banknotes, currency has become a

significant part of society. People spend a great deal of time earning money, spending money,

saving money, talking about money, and thinking about money, sometimes subconsciously. With

DOES MONEY BUY HAPPINESS? 4

money, people are able to satisfy not only their physiological needs, but their unlimited wants.

Some people use money as a way to rank themselves within society, believing that the more

money they have, the higher up they will be in society. However, there are many cases in which

wealthy people are unable to achieve and sustain happiness. This, along with money being highly

valued and sought after, raises the question: Does money buy happiness?

There are numerous aspects to evaluate when examining the correlation between money

and people’s subjective well-being. A person’s subjective well-being (SWB) is measured by how

people evaluate their own lives. It includes various significant components such as life

satisfaction, financial satisfaction, pleasant affect, and the absence of unpleasant affect (Diener &

Oishi, 2003). People often associate their subjective well-being with wealth, assuming that more