T HE RELATIONSHIP BETWEEN MONEY AND MENTAL WELL - BEING Laura Anne Brown Samajeo Williams

H OW MUCH MONEY WOULD MAKE YOU HAPPY ?

O VERVIEW : Research Paper 1 –From Wealth to Well-Being? Money Matters, but Less than People Think Research Paper2 –Money and mental wellbeing: A longitudinal study of medium-sized lottery wins Future experiments Conclusions

R ESEARCH P APER 1 – S TUDY 1 Prediction: Higher household income will be associated with higher levels of happiness. The two will be more tightly linked than actual data suggests Participants were recruited from an online survey Asked to select their income from a list of options Asked to rate their life satisfaction Predict life satisfaction of individuals of 10 different incomes

R ESEARCH P APER 1 – S TUDY 2 Prediction: Respondents will misinterpret the association between money and happiness. Almost identical to study 1 except individuals asked to predict their happiness at the 10 different incomes before predicting it for others. Asked to rate their life on a different scale to that in study 1.

R ESEARCH P APER 1 Study 1Study 2 Figure 1. Actual and predicted happiness levels for the ten household income point estimates in Study 1. Figure 2. Actual and predicted happiness levels for both oneself and another at the ten household income point estimates in Study 2.

W HAT DO THEY CONCLUDE ? Respondents envision a tighter association between money and happiness than actual data suggests. People believe increases in income are associated with an increase in happiness People believe decreases in income are associated with a decrease in happiness Those with higher levels of income predicted a stronger association (Study 2) Too much impact on this one variable The results support the conclusion

I SSUES WITH S TUDY 1 They use a different scale for happiness in study 1 and study 2. Awarding points for participation. They have not considered cultural implications. Don’t consider other sources of income. Life satisfaction and Happiness No happiness predictions for $1,000,000

I SSUES WITH S TUDY 1 Sample size. Low income sample criteria Lack of understanding of the implications that come with having a higher income Income ranges Who states the actual happiness data?

R ESEARCH P APER 2 Lottery winners were selected from participants from the British Household Panel Survey (BHPS) Lottery winners and all members of the household aged 16 and older had their happiness assessed with the General Health Questionnaire (GHQ) Lottery winners are divided into the following groups: No win, £1-£999 and £1000 or more.

R ESEARCH P APER 2

P ROS AND C ONS OF P APER 2 The researchers restricted their candidates to persons with a documented history. They did rigorous statistical analyses controlling for several factors. The researchers used a popular and widely accepted measure (GHQ). There was no explanation as to the decrease in mental health the year after winning.

P ROS AND C ONS OF P APER 2 The researchers enforce their standard of ‘significant’ win on the subjects. There were only 116 subjects so a very small sample size. There was a lack of correlation between win size and change in happiness. The survey was conduct only in Britain thus the correlation may be culturally dependent.

C ONCLUSION : D O THESE STUDIES ADD ANYTHING NEW ? It is the first to test the laypeople's intuitions covering a range of the income spectrum Showed the year of winning the lottery the participant showed a decrease n mental well-being Paper 1Paper 2

O UR CONCLUSIONS … Bring together both experiments Worldwide Larger sample Knowledge of background Shorter time frame Find out the cause of their stress Control for repeat winners Question individuals who have changed extremes Ask what they would do with the money

F INAL CONCLUSION Both studies are good foundations for further research into the relationship between money and well-being/ happiness.

Money may be the husk of many things but not the kernel. It brings you food, but not appetite; medicine, but not health; acquaintance, but not friends; servants, but not loyalty; days of joy, but not peace or happiness. ~Henrik Ibsen Thank you for listening.

B IBLIOGRAPHY Graphs taken from From Wealth to Well-Being? Money Matters, but Less than People Think Aknin, L., Norton, M., & Dunn, E. (2009) for Research Paper 1. Graphs taken from Money and mental wellbeing: A longitudinal study of medium-sized lottery wins Gardner, J. & Oswald, A.J. (2006) for Research Paper 2. Image for slide taken by 2 JLP/ Jose Pelaez © Song ‘For the Love of Money’ by The O’Jays.