Financial Planning

Happiness is being financially literate

HappyWe've written earlier about claims that being financially literate can make you healthier. Now, researchers are trying to determine if it can make you happier, too.

According to this article in The CPA Journal, researchers measured the attitudes and overall financial literacy of 1,252 students and 207 professionals, then tried to determine how those factors influenced the subjects' happiness.

"The results indicate that ... individuals with more positive financial attitudes are happier and have higher financial literacy," the article states. "As accounting teachers, the authors had expected to also find that higher financial knowledge leads to more happiness. Surprisingly, however, the link between financial attitudes and happiness appears stronger than the link between financial literacy and happiness. Unfortunately, the research method doesn’t allow a determination as to exactly why these relationships occur.

"Common sense suggests that part of the value of increasing financial literacy may be changing people’s attitudes about money," the article continues. "Specifically, people who are financially literate are also more likely to believe that (1) they can successfully manage their finances, (2) their financial decisions reflect their personal values and choices, and (3) financial resources are valuable mostly because they can create and sustain community and interpersonal relationships."

Maybe money can buy happiness afterall ...


Bill Sheridan