Buying Time Promotes Happiness

Ashley V. Whillans; Elizabeth W. Dunn; Paul  Smeets; Rene  Bekkers; Michael I. Norton

Article | Proceedings of the National Academy of Sciences of the United States of America | August 8, 2017

Buying Time Promotes Happiness

by Ashley V. Whillans, Elizabeth W. Dunn, Paul Smeets, Rene Bekkers and Michael I. Norton

Abstract

Around the world, increases in wealth have produced an unintended consequence: a rising sense of time scarcity. We provide evidence that using money to buy time can provide a buffer against this time famine, thereby promoting happiness. Using large, diverse samples from the United States, Canada, Denmark, and the Netherlands (n = 6,271), we show that individuals who spend money on time-saving services report greater life satisfaction. A field experiment provides causal evidence that working adults report greater happiness after spending money on a time-saving purchase than on a material purchase. Together, these results suggest that using money to buy time can protect people from the detrimental effects of time pressure on life satisfaction.

Keywords: time; well-being; Money; Happiness; Satisfaction;

Format: Print

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Citation:

Whillans, Ashley V., Elizabeth W. Dunn, Paul Smeets, Rene Bekkers, and Michael I. Norton. "Buying Time Promotes Happiness." Proceedings of the National Academy of Sciences of the United States of America 114, no. 32 (August 8, 2017).

Can money buy happiness? To examine this question, research in economics, psychology, and sociology has focused almost exclusively on examining the associations between income, spending or wealth and subjective well-being. Moving beyond this research, we provide the first empirical evidence that credit scores uniquely predict happiness. Across two samples, from the United Kingdom (N=615) and the United States (N=768), credit scores predicted life satisfaction even after controlling for a range of financial covariates, including income, spending, savings, debt, and home-ownership. Respondents with higher credit scores felt more optimistic about their future, promoting happiness. Further, the relationship between credit scores and wellbeing was moderated by participants’ prior awareness of their score. Together, these results suggest that creditworthiness can plausibly increase well-being, either directly or indirectly, meaning that interventions to improve creditworthiness could improve consumer welfare.

How do the wealthy spend their time, and does their time use relate to their greater well-being? Two large-scale surveys of millionaires and the general population show that millionaires spend their time in surprisingly similar ways as the general population. For example, millionaires spend the same amount of time as the general population cooking, shopping, and eating – and even spend more time on household chores. However, while millionaires and non-millionaires also spend the same amount of time engaging in leisure activities, a critical difference emerged: the wealthy engage in more active leisure (e.g., exercising and volunteering) and less passive leisure (e.g., watching TV and relaxing). Moreover, the extent to which wealthy individuals engage in greater active leisure helps to explain the gap in life satisfaction between millionaires and the general population. Together, these results further our understanding of when and how wealth translates into well-being.

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Buying Time Promotes Happiness

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