MONEY CAN BUY HAPPINESS.
USING CASH TO BUY FREE TIME CAN BOOST WELL-BEING: STUDY
It is said that money cannot buy happiness, but according to scientists, it depends what you spend it on.
Research suggests that using money to buy more free time, such as paying for a cleaner or cook to take the daily chores off your hands, does actually improve well-being. In contrast, spending money on possessions does little to improve happiness.
“Theoretically what we think is that buying time protects people from the negative effects of time stress in daily life,” said Elizabeth Dunn, University of British Columbia psychology professor and senior author of the study. “When you’re rushing around, feeling pressed for time, that seems to take a bit of a toll on people’s dayto-day happiness.”
Researchers gave 60 people taking part in the study in Vancouver $40 to spend on two weekends. The first time they were told to use the money on any material item they wanted.
Dunn said people reported buying a nice bottle of wine, clothes, and board games. Researchers then surveyed the group to determine their level of happiness following the purchase of the item.
On the second weekend, participants were tasked to use the money to save them time — such as taking a taxi instead of public transit, have someone mow their lawn, and in one case having a “neighbour boy” run errands.
Dunn said they compared the group’s level of happiness following both instances of spending, and found people were much happier when they bought themselves more time.
Surprisingly, Dunn said only two per cent of the group reported that they would spend money on things that would give them more time.
“It’s not what comes to mind to people as a way to increase their happiness and the rates at which people are engaging in this type of expenditure are surprisingly low,” Dunn said.
Dunn has reported that even the rich don’t pay to save time, noting that people who could afford to have their groceries delivered still went to the supermarket or parked their own cars instead of using valet parking.
The study surveyed 850 millionaires in the Netherlands and found almost half of them don’t spend money to outsource their most disliked tasks.
Buying more time requires the means to do so, Dunn said. But a survey of 6,000 people in Canada, the U.S. and Europe showed those who have a bit of discretionary income would benefit from spending it on getting rid of the chores they dread.
The minority of people who do buy time-saving tools typically spend $80 to $100 a month, Dunn said, adding the study shows even $40 can make a difference.
“People who don’t feel like they’re rolling in dough may feel like that’s a frivolous way to spend money but what our research is showing is that even if you don’t have tons of money, using money to get rid of your disliked tasks may be a pretty smart decision,” she said.
The reason behind people’s aversion to treating themselves to time-savers is unclear. Dunn said her team’s best guess is that people feel guilty spending money on things they could do themselves.
“People may feel like I can do this so I should do this, and so I hope our research helps to break through that perhaps misguided cultural assumption,” she said.
Dunn said her team intends to do a follow-up study to better understand why people don’t spend money to buy time, and see how age, gender, ethnicity or other characteristics plays into the reasoning.