Individual Essay on the Topic: Can Money Buy Happiness? (Economics)

This essay examines the multifaceted relationship between money and happiness, addressing the central question: "Can money buy happiness?" The essay begins with an introduction that provides a brief overview of the ongoing debate on the topic. The main body of the essay delves into various perspectives, including arguments for and against the idea that money contributes to happiness, supported by research findings. It explores how factors such as income levels, spending habits, and cultural values influence the relationship between money and happiness. The essay also incorporates Kolb's reflective framework to analyze personal experiences and learning from the research. Finally, the essay concludes with a summary of the arguments, drawing a conclusion based on the evidence and research presented. The essay also includes a reflection on the skills used and lessons learned throughout the process, along with a list of references.

Study Skills
1

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Reflection....................................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
2

INTRODUCTION
There has been a long debate about if money can buy happiness and many studies
have been conducted on the same. There are many factors that can affect how money
buys happiness. These factors can include cultural values, where does an individual live
etc. One of the reasons why money contributes to the happiness of people is that it helps
them in solving certain problems in life (Aasheim and et. al., 2019). This report is an essay
based on the topic if money can buy happiness. It also compares different views on the
issue along with a discussion on different perspectives based on the issue. Kolb's
reflective framework is also included in order to facilitate a better understanding of the
given topic.
MAIN BODY
It is difficult to say if money can buy happiness because the statement holds
different meanings for different people. Some people argue that money does but you
happiness as it provides with basic comforts like shelter, food etc. Researchers have said
that money can buy happiness but only to a certain point. This is because after this point
there is no such effect of money on the social well being of the people. There are many
studies which show that families with a relatively low income struggle for money in order
to gain happiness in the form of fulfilling their requirements as compared to a high
income family. Also, low income families relate with money problems more than high
income families. It is a known fact that a certain amount of money can eliminate certain
risks and problems from a person's life (Cottrell, 2019). People tend to earn more money
as they grow up. The reason behind this is that they gain more experience and thus
perform better. Also, if money made people happy, then all of the people in the upper
class of the society would've been extremely happy, which is not the case.
Money is not the final solution to the problems of a person's life but it somewhat
makes it easier for them to solve and overcome problems (Zaman and et. al., 2019). Money
cannot substitute happiness, rather it is one of the prime components for it. And this also
depends on the lifestyle of the people and the level of importance that they give to
3

money. For people who belong to the lower middle class or are in poverty, money can
definitely buy them happiness. This can be seen when a person who does not have
enough money to fulfil their dreams is asked about its importance. But this only works up
to a certain limit because once the limit is reached and the basic requirements are met,
money is only a merely a source of fulfilling the needs. Also, there are many people who
think that physical things can lead to happiness. But this is only for a short duration of
time because the thing that is purchased with money gradually fades and become often.
Thus, investing money in experiences can lead to a greater amount of happiness.
Also, there are many people who think that spending money on themselves can
lead also buy them happiness (Darmaji, Kurniawan and Suryani, 2019). This is also true as it
can be seen in the form of an increased pay or bonus earned by an individual by putting
in hard work (Can Money Buy Happiness?. 2020). So, it is said that while making a
purchase people should think about if it will really make them happy or is it just the idea
of it that makes them happy. Everyone wants to be happy and when people can purchase
things that they desire or even fulfil their basic requirements, they become happy.
Earning more as well as saving more can help people in leading a richer life. There are
many reasons for money to buy happiness which include reduced levels of stress and
worry, an increased control over time etc. Apart from this, there are different ways in
which money can be used to buy happiness. This includes giving the money to others or
spending it in a way that makes other happy, thinking before make an impulse purchase
etc.
Money can give great happiness when it is spent for a good cause like for the
welfare of others or the people who cannot fulfil their basic needs. Apart from this,
whenever a person thinks of making an impulse purchase, they should take a moment and
think if the purchase of their use or if it matches their personality. If the answer is no,
then that thing should not be purchased (Haerazi and Irawan, 2019). Instead, the money can
be saved or invested in for a much more useful thing. It is not that money does not matter,
it matters but not to the extent that people think it does. Many researches have been
conducted which show that people who spend money on the well being of others are
4

comparatively happier as compared to others. And this holds true for both rich as well as
poor people because even if a small amount is spent for others, it still makes the person
equally happy (Can Money Buy Happiness?, 2020). Also, how people view money can
also significantly impact the level of their happiness.
Money can act as a tool for motivating a person to perform in an enhanced way
and to be happy. As a result, people can achieve milestones in their lives. Different
people have different perspectives about how money can buy them happiness. There are
many people who say that money can't buy happiness but this holds partly true. Money
that is used in an effective way can definitely buy happiness as compared to the way if it
isn't spent wisely (Halperin and Heath, 2020). It can be said that money is a tool and can be
used to pay bills and fulfil basic needs like food, shelter etc. There are some people who
think this way, while the remaining think of it as a tool that motivates them to work hard
and accomplish their goals. It helps them in life and is not just a thing that people spend.
Many people think that money can't buy happiness and one of the main reasons behind
this is that they have been spending it in a wrong way. They think that buying things that
other people have will make them happy ignoring the needs that they must fulfil which
are important.
There are also certain people who keep saving their money and don't think of ways
that can actually help them in increasing the same. Therefore, rather than just stacking up
the money, various investment options should be considered. This can be explained in an
effective way with the help of Kolb's reflective framework. It is also referred to as
experiential learning, the basis of which is the own experience of an individual.
According to Kolb, the process of learning involves acquiring abstract concepts which
can be applied to different situations. The model comprises of four stages, namely
concrete experience, reflective observation, abstract conceptualization and active
experimentation (Jung and et. al., 2020). I was assigned to write an article on the topic, Can
money buy happiness?. The situation that I encountered while undertaking this research
was that different articles and journals explained different perspectives about the same.
Thus, I developed an idea and spoke to my tutor to provide advice regarding the same.
5

My tutor provided me guidance and helped me in enhancing my understanding about the
topic. The tutor also provided me some notes that helped me in completing the research
in an effective manner.
Therefore, these are some of the points that can explain that money can buy
happiness. Money can buy financial happiness and that too up to a certain limit because
after that it barely makes any difference. For money to buy happiness, one should also
avoid any kind of investments that they are not sure of making and have a considerable
amount of risk associated with them as well.
People who save money or invest it wisely are observed to not only live longer,
but also be happier as compared to the ones who don't (Koong, Liu and Liu, 2020). Most
people are born and grow in middle class families which means that they believe that
money does buy happiness. This is because they sometimes struggle with fulfilling their
important requirements. As a result, they work hard so that they can earn more and fulfil
the same in an effective manner. If a person earns more, they feel financially independent
and as a result are happier than others. Money can also buy happiness as it can enhance
the overall quality of life of people. It is true to some level that poverty makes people
unhappy. This is because they find it hard to secure their needs. Also, how a person
spends money can impact the levels of their happiness (Pan and et. al., 2019). Merely
spending money on material things can affect the happiness of an individual. Thus,
money should just be considered as a tool which should be spent in an effective manner.
Rather than spending money on oneself, if an individual decides to give it away to
other people like in a charity etc., they will feel happier and content at the same time.
Also, the expenditure should be tracked to gain useful insights about how can it be spent
in an effective manner. Money provides an ability to fulfil not only the personal
requirements but also of family members as well as friends. Buying a present for another
person can lead to happiness which buying material things cannot do. It is easy to think
that an impulse buy can make you happy, but the truth is opposite (Virtanen and Tynjälä,
2019). If a person has a lot of money, others who are not as financially stable as them,
might feel uncomfortable. Buying experiences can include spending on vacations,
6

learning something new etc. The money should be used to buy time and one should keep
finding new and effective ways of spending the same wisely.
Reflection
In order to work on this project and complete it in an effective manner, there were
different skills that were required. For example, the skills include research skills because they
helped me in finding relevant and accurate information. I believe that I performed fairly good in
this research because I tried to include points that were as accurate as possible without creating
any confusion. There are many lessons that I learnt during the planning process, research and
while writing the essay. I learnt that one should possess relevant research and writing skills so
that they can present an essay or a particular piece of writing in the most effective way as
possible. Not only this, I learnt to break down my work into small tasks and allocate a time frame
to each of the tasks.
This helped me in completing the research well within time and without any delays. But I
also identified certain areas of potential improvement. For example, my tutor suggested that I
should work on my writing skills. This is because the tutor felt that I failed to explain few points
in my essay clearly. As a result, I was told to work on them and enhance the same. This is
because effective writing skills will not only be beneficial in my academics but also contribute to
my success as a professional. Therefore, I must work on the same to ensure that I am able to
present my ideas and thoughts more clearly and in an understandable as well as simple language.
CONCLUSION
My position in this debate is that money can buy happiness only when it is spent in
a right way. If this is the case, then the individual will feel happy. Also, money should be
spent on experiences rather than just buying physical things. Rather than just wasting
time in collecting money, one should use it properly. The happiness which money can
buy can come in the form of less depression and also afford the basic necessities to live a
smooth life. The person does not suffer from any kind of financial stress because they can
manage finances effectively.
7

REFERENCES
Books & Journals
Aasheim, C. and et. al., 2019. Knowledge and skill requirements for entry-level IT workers: A
longitudinal study. Journal of Information Systems Education. 23(2). p.8.
Cottrell, S., 2019. The study skills handbook. Macmillan International Higher Education.
Darmaji, D., Kurniawan, D. A. and Suryani, A., 2019. Effectiveness of basic physics II
practicum guidelines based on science process skills. JIPF (Jurnal Ilmu Pendidikan
Fisika). 4(1). pp.1-7.
Haerazi, H. and Irawan, L. A., 2019. Practicing genre-based language teaching model to improve
students’ achievement of writing skills. IJELTAL (Indonesian Journal of English
Language Teaching and Applied Linguistics). 4(1). pp.9-18.
Halperin, S. and Heath, O., 2020. Political research: methods and practical skills. Oxford
University Press, USA.
Jung, J. J. and et. al., 2020. First-year analysis of the operating room black box study. Annals of
surgery. 271(1). pp.122-127.
Koong, K. S., Liu, L. C. and Liu, X., 2020. A study of the demand for information technology
professionals in selected internet job portals. Journal of Information Systems Education.
13(1). p.4.
Pan, C. Y. and et. al., 2019. Effects of physical exercise intervention on motor skills and
executive functions in children with ADHD: A pilot study. Journal of attention
disorders. 23(4). pp.384-397.
Virtanen, A. and Tynjälä, P., 2019. Factors explaining the learning of generic skills: a study of
university students’ experiences. Teaching in Higher Education. 24(7). pp.880-894.
Zaman, U. and et. al., 2019. Understanding the soft side of software projects: An empirical study
on the interactive effects of social skills and political skills on complexity–performance
relationship. International Journal of Project Management. 37(3). pp.444-460.
Online
Can Money Buy Happiness?. 2020. [Online]. Available through:<https://psychology.unl.edu/can-
money-buy-happiness>.
Can Money Buy Happiness?. 2020. [Online]. Available
through:<https://www.sharecare.com/health/happiness/article/can-money-buy-
happiness>.
8