ACTUALLY, MONEY CAN BUY HAPPINESS

Gen Z can be happy with $95,858, poll says

Can spending money lead to happiness? For Gen Z, the answer might just be a big “Yes.”

A U.S. survey found that 69 per cent of Gen Z see happiness as something money can buy after all (via Nypost).

The poll was conducted among 1,000 Americans by Rubyhome, a luxury real estate firm in California.

Notably, the amount of money that Gen Z adults (those 25 and under) need to be happy was much lower in comparison to their predecessors. For them, well-being lay just $95,858 away (not nearly enough for a minimum down payment for a home in Toronto, it's probably worth noting.)

Gen Z's notion of “rich status,” or living in the comfortable lap of luxury, was to acquire $504,526, about 44 per cent less than the baby boomer's definition, at $1,305,416.

Gen X ($1,135,603) and Millenials ($922,883) also had curtailed expectations, though not by much.

Just over half of respondents (51 per cent) thought they were on track to becoming rich. However, those who believed they were becoming rich had debt that ran to nearly a third or more of their annual income, according to the research.

Even as home prices in Canada continue to far exceed median incomes, 83 per cent of Canadian Gen-z'ers agree that home ownership will play a major role in achieving a financially stable retirement, according a report released in March by Sotheby's International Realty Canada.

According to the survey, 30 per cent of urban Gen Z adults expect the purchase price of their first home to be $350,000 to $499,999, while 26 per cent expect to pay between $500,000 and $749,999. Thirty-seven per cent say they expect to buy a home in less than five years, while 43 per cent anticipate they will own a home between five and ten years from now.

This comes as Canadian's finances become increasingly debt-laden.

Canadians have $1.86 in credit debt for every $1 of household disposable income in the fourth quarter, according to Statcan. The increase in the fourth quarter came as household credit market debt rose 1.9 per cent and household disposable income fell 1.3 per cent.