Hat tip to Nick Maggiulli of Dollars and Data blog for highlighting this research from . 

Answer:

• Buying experiences
• Treating yourself (on occasion)
• Buying extra time
• Paying upfront (i.e. all-inclusive vacations)
• Spending on others

Questions: 

• What are ways that you spend money that bring happiness to you? Do they fit into any of these five categories? 
• Why do you think that researchers found that "buying experiences" might create more happiness than buying "things?"

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (Book review of Happy Money):

Along the way, Dunn and Norton explore fascinating research that reveals that luxury cars often provide no more pleasure than economy models, that commercials can actually enhance the enjoyment of watching television, and that residents of many cities frequently miss out on inexpensive pleasures in their hometowns. By the end of this “lively and engaging book” (Dan Gilbert, author of Stumbling on Happiness), you’ll be asking yourself one simple question every time you reach for your wallet: Am I getting the biggest happiness bang for my buck?

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Interested in more behavioral finance? Check out our NEW! Mini-Unit here (2.0 Behavioral Finance)!

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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