Money and happiness tend to be associated with each other. This notion has been passed down from generation to generation; it is one which sparks intense debate between individuals. Scientifically, however, it has shown, in fact, to be false.

Though some wealthy people may look down upon less fortunate individuals to feel better about themselves, this is only a minor instance that comes for some who have achieved their financial success. The truth is, not everyone has the ability to achieve this state of financial stability in life. Some people may not have to worry about money throughout their entire life, while others may not have the means to obtain collegiate training in their desired occupation without overwhelming debt.

In more recent years, research has shown that an increase in income has a positive influence on happiness (life satisfaction)—albeit disproportionally. Life satisfaction tends to lessen as income increases, while those with little income come to appreciate money and what they have in a more compelling way than those who have this all in larger abundance.

A major version of one such research project was conducted by psychologists Elizabeth Dunn, Lara Aknin, and Michael Norton of Harvard Business School in 2008. Participants were given $5 or $20 to spend by the end of the day. Half of them were instructed to buy themselves something; the other half used it to help out someone else. The results have shown that the half who spent the money on others were happier, and the amount of money, in fact, did not matter.

The feud over the effect which money has on happiness is supported (and polarized) by evidence for both sides of the argument, with significant data proving this hearsay to be false and contrary information supporting it. The side of the debate which people choose is not important, so long as money does not consume them and affect each life decision which they make.