Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Financial security, more than money alone, may be key to happiness

19.03.2009
Points to government policies supporting safety nets

A study of the mental state of the modern American woman by a Princeton University psychologist has found a powerful link between concerns over financial security and satisfaction with one's life.

In looking toward the future, women who concentrated much of their thinking on financial matters were much less likely to be happy with their lives, according to Talya Miron-Shatz, a postdoctoral research fellow in the Woodrow Wilson School of Public and International Affairs at Princeton. And, contrary to expectations, many of those with such worries had plenty of money by conventional standards, she said, suggesting that there is more at play in obtaining peace of mind than simply having cash.

"Even if you are making a hundred grand a year, if you are constantly worried that you are going to get fired, that you are going to lose your health insurance or that you are simply not sure you are going to 'make it,' you are not going to be happy," Miron-Shatz said. Such concerns, she found, affected a wide variety of women at all income levels.

Conversely, those who didn't fixate on finances like retirement savings, tuition for college or simply making ends meet, reported being the happiest of the group.

The study was published Feb. 25 in Judgment and Decision Making, a scholarly journal. Miron-Shatz is hoping the results might guide policy decisions, especially those being devised by President Barack Obama and the U.S. Congress in the wake of today's financial crisis. Her work would favor a focus on strategies that create social and financial "safety nets" over measures that would directly increase income.

To understand how income and concerns over financial security may relate to a person's satisfaction with life, Miron-Shatz conducted two separate studies of a representative sample of nearly 1,000 American women of various ages and incomes. In one study, she showed that considerations of financial security were as important to the study subjects as their monetary assets.

She asked subjects in the second study to think about the future in an open-ended manner. Those who did so and mentioned financial concerns -- retirement, college tuition, making ends meet, etc. -- were less satisfied with their lives, she found, than those who did not raise such concerns. One of her participants said that when thinking of her future she wondered, "Will I be happy and financially stable?" The stability, Miron-Shatz says, is crucial. "It's not about greed," she added. "It's about knowing whatever it is you have, be it your McMansion or your motor home, won't be taken away from you."

Discussions about wealth need to be expanded to include this notion of financial security, she said, and though valid and meaningful, this factor is "glaringly missing from economic discussions," she said in her paper's introduction.

Psychologists have long sought to understand the connection between money and happiness.

Though the popular conception has been that "money can't buy happiness," studies have shown that wealth can play a role in enhancing happiness. Yet, wealth itself has been poorly defined in studies. And, contributing to this complicated relationship is what Princeton Nobel laureate Daniel Kahneman has called the "satisfaction treadmill." In pioneering studies of human happiness, Kahneman, the Eugene Higgins Professor Emeritus of Psychology, has found that satisfaction does not necessarily increase in a corresponding amount with an improved financial status.

Miron-Shatz is a postdoctoral fellow in the laboratory of Kahneman, a psychologist who has pioneered the integration of research about decision-making into economics and won the 2002 Nobel Prize in economic sciences. Miron-Shatz's paper grew out of her work with Kahneman, who is her adviser.

Kitta MacPherson | EurekAlert!
Further information:
http://www.princeton.edu

More articles from Studies and Analyses:

nachricht First form of therapy for childhood dementia CLN2 developed
25.04.2018 | Universitätsklinikum Hamburg-Eppendorf

nachricht Do microplastics harbour additional risks by colonization with harmful bacteria?
05.04.2018 | Leibniz-Institut für Ostseeforschung Warnemünde

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: BAM@Hannover Messe: innovative 3D printing method for space flight

At the Hannover Messe 2018, the Bundesanstalt für Materialforschung und-prüfung (BAM) will show how, in the future, astronauts could produce their own tools or spare parts in zero gravity using 3D printing. This will reduce, weight and transport costs for space missions. Visitors can experience the innovative additive manufacturing process live at the fair.

Powder-based additive manufacturing in zero gravity is the name of the project in which a component is produced by applying metallic powder layers and then...

Im Focus: Molecules Brilliantly Illuminated

Physicists at the Laboratory for Attosecond Physics, which is jointly run by Ludwig-Maximilians-Universität and the Max Planck Institute of Quantum Optics, have developed a high-power laser system that generates ultrashort pulses of light covering a large share of the mid-infrared spectrum. The researchers envisage a wide range of applications for the technology – in the early diagnosis of cancer, for instance.

Molecules are the building blocks of life. Like all other organisms, we are made of them. They control our biorhythm, and they can also reflect our state of...

Im Focus: Spider silk key to new bone-fixing composite

University of Connecticut researchers have created a biodegradable composite made of silk fibers that can be used to repair broken load-bearing bones without the complications sometimes presented by other materials.

Repairing major load-bearing bones such as those in the leg can be a long and uncomfortable process.

Im Focus: Writing and deleting magnets with lasers

Study published in the journal ACS Applied Materials & Interfaces is the outcome of an international effort that included teams from Dresden and Berlin in Germany, and the US.

Scientists at the Helmholtz-Zentrum Dresden-Rossendorf (HZDR) together with colleagues from the Helmholtz-Zentrum Berlin (HZB) and the University of Virginia...

Im Focus: Gamma-ray flashes from plasma filaments

Novel highly efficient and brilliant gamma-ray source: Based on model calculations, physicists of the Max PIanck Institute for Nuclear Physics in Heidelberg propose a novel method for an efficient high-brilliance gamma-ray source. A giant collimated gamma-ray pulse is generated from the interaction of a dense ultra-relativistic electron beam with a thin solid conductor. Energetic gamma-rays are copiously produced as the electron beam splits into filaments while propagating across the conductor. The resulting gamma-ray energy and flux enable novel experiments in nuclear and fundamental physics.

The typical wavelength of light interacting with an object of the microcosm scales with the size of this object. For atoms, this ranges from visible light to...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

Invitation to the upcoming "Current Topics in Bioinformatics: Big Data in Genomics and Medicine"

13.04.2018 | Event News

Unique scope of UV LED technologies and applications presented in Berlin: ICULTA-2018

12.04.2018 | Event News

IWOLIA: A conference bringing together German Industrie 4.0 and French Industrie du Futur

09.04.2018 | Event News

 
Latest News

Getting electrons to move in a semiconductor

25.04.2018 | Physics and Astronomy

Reconstructing what makes us tick

25.04.2018 | Physics and Astronomy

Cheap 3-D printer can produce self-folding materials

25.04.2018 | Information Technology

VideoLinks
Science & Research
Overview of more VideoLinks >>>