According to a recent survey, millennials believe that achieving true happiness requires a yearly salary of $525,000. This stands in sharp contrast to other generations whose ideal annual earnings typically fell within the $100,000 to $200,000 range.
While on the surface this figure may appear somewhat extravagant, research by a Nobel Prize winner supports millennials' pursuit of exceptionally high incomes. The research contends that an increase in income directly correlates with an increase in happiness.
From Business Insider:
On Monday, Empower — a financial services company — released the results of a survey conducted by The Harris Poll in August that asked 2,034 Americans aged 18 and over what they think the key to financial happiness really is. Turns out, 59% of respondents think happiness can be bought, and the average person believes it would take having $1.2 million in the bank to be truly happy financially.
When it comes to annual salary, the average respondent thinks they need $284,167 each year to be happy. Here's what each generation said they need to earn annually, as well as the net worth required, to achieve happiness:
Gen Z: $128,000, with a net worth of $487,711
Millennials: $525,000, with a net worth of $1,699,571
Gen X: $130,000, with a net worth of $1,213,759
Boomer: $124,000, with a net worth of $999,945
Men said they needed to earn $381,000 annually, while women said $183,000 would make them happy.
A 2023 study coauthored by another Nobel Prize recipient Daniel Kahneman found that happiness can improve with higher earnings of up to $500,000 a year, supporting the millennial survey respondents' predictions.
"In the simplest terms, this suggests that for most people larger incomes are associated with greater happiness," Matthew Killingsworth, a senior fellow at Penn's Wharton School and coauthor of the study, said. "The exception is people who are financially well-off but unhappy. For instance, if you're rich and miserable, more money won't help. For everyone else, more money was associated with higher happiness to somewhat varying degrees."
IIt's undeniably intriguing that millennials place such a strong emphasis on money compared to other generations.
I'm no expert in human behavior, making it challenging to pinpoint the exact reason behind millennials' high financial aspirations.
Maybe it stems from witnessing the 2008 financial crisis or grappling with overwhelming student loan debt. But, then again, who really knows? Perhaps the Kardashians have something to do with it...
