If happiness had a clear price tag, how much would it cost?

The latest opinion poll in the United States suggests that if happiness were quantifiable, the average person believes it would cost around $1.2 million.

Money can buy happiness, or so it seems to varying degrees for different individuals. According to a recent survey in the United States, if happiness had a price tag, the common consensus among the populace is that it would be valued at approximately $1.2 million.

In a survey released by the financial services company Empower at the end of November, most Americans associate "financial happiness" with feelings of freedom first, followed by security and ease.

Hence, when posed with the age-old question of whether money can buy happiness, about sixty percent of respondents believed it could, with the price tag hovering around $1.2 million; 71% of Americans believe that "having more money can solve most problems."

Different generations have varying estimates for the cost of happiness. Viewing happiness from the lens of different generations, millennials place the highest price on happiness, requiring about $1.7 million in net assets for a truly happy life; baby boomers feel that just under $1 million in net assets would suffice for their happiness; and Gen X values happiness at approximately $1.21 million.

The Gen Z generation stands out as an exception. Empower's survey found that an average of about $487,000 in net assets is enough to bring economic happiness to the youngest adult generation.

The company suggests that the significant disparity between millennials and other generations could be attributed to the major setbacks this cohort has faced, including the 2008 financial crisis, the disruptions brought about by the pandemic, and the current high rates of inflation and mortgage interest.

Furthermore, differences in gender are also reflected in the cost of happiness: men typically require around $1.488 million in net assets, nearly double that of women.

Discussing salaries, Americans indicate that they need roughly $284,000 in annual income to feel happy, with men expecting $381,000 per year, far exceeding women's expectations of $183,000.

Here are the average annual salaries needed to bring happiness and alleviate stress for different generations: millennials at $525,000, Gen Z at $128,000, Gen X at $130,000, and baby boomers at $124,000.

The survey also reveals that high inflation, interest rates, rising costs, and student loans are causing considerable stress for many. In the current circumstances, about 42% of Americans say that $25,000 would boost their financial happiness in six months; a third of respondents believe that $15,000 would significantly improve their lives; and 17% even claim that they would feel very happy with just $5,000.

Empower states that every generation is striving for financial freedom through hard work, careful planning, and consistent saving. Nearly 70% of respondents say they have clear financial goals.

Defining Financial Happiness

For Americans, the definition of "financial happiness" extends beyond mere net assets and encompasses various aspects. Over sixty percent of respondents believe that "paying bills on time in full" and "living debt-free" are crucial; about half wish to purchase minor luxuries without burden and cover social expenses effortlessly.

For two-fifths of Americans, owning a home and achieving a good work-life balance are the key factors for financial happiness; over a third express that being able to retire whenever they wish would bring great happiness.