Happiness & Money

Money and Happiness

Money and Happiness

Aigerim Assylkhanova

Hilda A Nurbayyanti

Lorena Fadda

Nabilla D Adharina

Steve Darmadi

Tingyu Zhang

Bolun Zhang

Akimbek Saifulla

HappinessSubjective well-being is considered to be one of the important indicators of successful aging

(Herero and Extremera 2010)

What Makes Us Happy?

GDP per capita

Social support

Healthy life expectancy

Freedom to make life choices

Generosity

Freedom from corruption (WHR15)

more MONEY, more HAPPY !

COMMONSTEREOTYPE

Working Age AdultsUpcoming Stage of Life

$26,444Wedding Costs*

*the U.S wedding report inc, 2015

$3,500Childbirth Costs**

* according to Agency for Healthcare Research and Quality Healthcare Cost

and Utilization Project

Older AdultsRetired Being not in money-making atmosphere

Nursing grandchild could be the most lovable thing

to dono particular achievement to pursue

They don’t have particular stimulus to make money

no particular achievement to pursue

HOMO ECONOMICU

S

How do you live today, from 0 to 10?

(2012-2014 average)

Geography of Happiness

Geography of Happiness80

years

70 years

60-65 years

(World bank data)

Research QuestionDoes exist a correlation between happiness and money expenditure for older people?

Ho: The expenditure of elderly people on leisure, savings, donations, health, does not influece their happiness.

H1: More elderly people spend their money in leisure, savings, donations, health, the more they are happy.

Variables

Leisure1stVariable

TRAVELMove away or stay: In the next 12 month,

are you likely or unlikely to move away from the city or area where you live?

2nd HealthVariable

Thinking about your life in general, please rate your level of agreement

using a five-point scale

3thStandard of LivingVariable

Are you satisfied or dissatisfied with your standard

of living,all the things you can buy or do?

4th DonationVariable

1.Donated Money: Have you done any of the following in the last month? How about donated money to a charity?

2.Sent financial help: In the past 12 months did this household send help in the form of money or goods to another individual?

Methodology• Literature review

• Sample definition : geographic area and age

• Variables definition

• Data collection from Gallup database

• Pearson correlation with SPSS software

• Interpretation of results

• Conclusions

Example of SPSS

Very Strong 0,7 < X ≤ 1Strong 0,5 < X ≤ 0,7Weak 0,2 < X ≤ 0,5Very Weak 0 < X ≤ 0,2

Applied for both negative and positive numeration

Correlation

America & Europe AfricaAsia

Happiness and Standard of Living

0,803 0,215 0,357

Very Strong Correlation Weak Correlation Weak Correlation

America & Europe

Africa

0,401 0,359 0,215

Weak Correlation Weak Correlation Weak Correlation

Asia

Happiness and Sent Financial Help

America & Europe Africa

0,803 0,181 -0,145

Very Strong Correlation Very Weak Correlation Very Weak Correlation

Asia

Happiness and Donate Money

America & Europe Africa

0,308 -0,194 0,250

Weak Correlation Very Weak Correlation Weak Correlation

Asia

Happiness and Move Away

America & Europe Africa

-0,534 -0,131 -0,176

Strong Correlation Very Weak Correlation Very Weak Correlation

Asia

Happiness and Have Enough Money (Strongly Disagree variable)

Variables America and Europe Asia Africa

Standard of Living Very Strong (+) Weak (+) Weak (+)

Have Enough Money (health) Strong (-) Very Weak (-) Very Weak (-)

Donated Money Very Strong (+) Very Weak (+) Very Weak (-)

Sent Financial Help Weak (+) Weak(+) Weak (+)

Move Away Weak (+) Very Weak (-) Weak (+)

Summary

Possible Reasons

1. Countries in Asia and Africa have lower priority to afford high quality of life;

2. American and European countries used to enjoy high life standards, so they’ tend

to be more sensitive to money;

3. The data collected from gallup, selected from 50+ respondent (there is no older

categories). In europe and america, there could be tendency to retire in older age.

Even 50-60 could still be considered as working age. Therefore, it could be unfair

to compare european and american data to other continents.

Conclusion

Ho is rejectedThere is a correlation between happines and several variables (Standard of living, have enough money

(health), donated money, move away, sent financial help) eventhough not all of variables have strong correlation

with happiness.

Thank You!