Quick, if you get a bonus, what will make you happier — buy that new smartphone you’ve always wanted or give it a non-profit whose caught you believe in?
Most likely, you’d think spending money on ourselves will make us happier. Well, happy for sure, but not happier than if we give it away. Studies have shown that how we spend money has a direct correlation with happiness. The conclusion:
- Spend money on ourselves = little correlation with happiness
- Spend money on others = high correlation with happiness
Recall the last time you gave money to someone in need or to a charity you support. Compare what you felt then with how you felt when you bought stuff for yourself. You more likely felt far happier and far longer when you gave money away.
What does the science behind this say?
Social psychologist Elizabeth Dunn of the University of British Columbia (UBC) in Vancouver, Canada did an experiment, the results of which were published in Science magazine, wherein about half of the 109 students were given money to give away and the other half to spend on themselves. At the end of the day, the students who spend the money on others (like buying a toy for a sibling or a meal for a friend) reported higher level of happiness.
She did another survey, this time involving 630 Americans across gender, income, and spending habits. Statistical analyses showed that personal spending had no correlation with happiness, while spending on others had a significant link with happiness. And it doesn’t matter how much was given — even giving a small amount boosts happiness.
The question is why does giving makes us happier than spending?
There are several hypothesis given:
- giving makes people feel good about themselves
- giving strengthens their social relationships
- giving involves spending time with other people
- giving gives warm fuzzy feelings that last longer than personal consumption
- giving helps a person express a certain identity
- giving makes people feel that their lives are meaningful, significant and important
Another research by Michael Norton, an associate professor of marketing at Harvard Business School, contends that giving away money can make you feel wealthier, and feeling that you have more money (just because you can afford to give some away) makes you happier. After all, isn’t that the wealthy do — turn into generous philanthropists?
The proper term to explain this is “subjective wealth,” or how well off you feel. Norton says that giving $500 is equivalent to earning an extra $10,000 in terms of feelings of subjective wealth. It’s the same effect in people who volunteer their time to help others, which makes them feel they have plenty of time.
In this TEDxCambridge video, Michael Norton shares numerous research on the benefits of pro-social spending, i.e. spending money on others and its impact on happiness.
If you think about it, giving is a selfless act, yet it makes us feel good about ourselves, whether it’s our subjective feeling of how well-off we are or how more meaningful our life is. And that kind of sounds a little selfish — we give because it also actually makes us feel good. Somehow that’s okay.
If you are a Christian, you may also be curious at what the Bible says about giving. Look no further than 2 Corinthians 8 and 9, which is heavy on the issue of giving. Here, Paul praises the Corinthian and Macedonian believers for their generous giving. He basically says that giving is a selfless act but you will also benefit from it. What lessons can we pick from this passage?
- Generous giving is a grace from God. And it’s also His activity of grace, using our giving to fulfill His purpose.
- We should also excel in giving as much as we should excel in other areas of our spiritual life.
- We should give according to our means. And perhaps even beyond our abilities.
- Giving will help other believers in need. So that when others have plenty and you have a need, they can help you.
- Giving is evidence that you love others.
- Giving is contagious. When you give, others are encouraged to give as well.
- You should plan your giving. Be strategic and purposeful.
- Give a little, get a little. Give generously, receive generously.
- Be a cheerful giver. Don’t give reluctantly or grudgingly.
- God can bless you abundantly. And He will prosper you in every way so you can be generous on every occasion.
- Your generosity will bring others to thank and praise God.
- Giving is not just supplying the needs of others but it’s our way of thanking God.
So yes, give because being generous to others is good in itself. Just know and actually be thankful that there are plenty of benefits that go along with it.
Photo by Vitaly Taranov on Unsplash
