Abstract
The most prominent theory to explain the curvilinear relationship between income and subjective well-being (SWB) is need theory,
which proposes that increased income and wealth can lead to increased well-being in poverty because money is used to satisfy
basic physiological needs. The present study tests the tenets of need theory by proposing that money can buy happiness beyond
poverty if the money satisfies higher-order needs. Findings indicate that in older adults (n = 1,284), as economic standing rises, so do individual perceptions of financial security (a safety need), which in turn increases
overall life satisfaction. Further, a path model tested the degree to which financial security and psychological need satisfaction
mediated the path from economic standing to life satisfaction and demonstrated the complete mediation through higher-order
needs—there was a 66% reduction in the direct link through financial security and a 34% reduction through psychological need
satisfaction. Discussion focuses on how these mediation and path models extend need theory.
which proposes that increased income and wealth can lead to increased well-being in poverty because money is used to satisfy
basic physiological needs. The present study tests the tenets of need theory by proposing that money can buy happiness beyond
poverty if the money satisfies higher-order needs. Findings indicate that in older adults (n = 1,284), as economic standing rises, so do individual perceptions of financial security (a safety need), which in turn increases
overall life satisfaction. Further, a path model tested the degree to which financial security and psychological need satisfaction
mediated the path from economic standing to life satisfaction and demonstrated the complete mediation through higher-order
needs—there was a 66% reduction in the direct link through financial security and a 34% reduction through psychological need
satisfaction. Discussion focuses on how these mediation and path models extend need theory.
- Content Type Journal Article
- Pages 1-13
- DOI 10.1007/s11205-010-9774-5
- Authors
- Ryan T. Howell, Department of Psychology, San Francisco State University, 1600 Holloway Avenue, San Francisco, CA 94132, USA
- Mark Kurai, University of California, Davis, USA
- Leona Tam, Department of Marketing, Old Dominion University, Norfolk, VA, USA
- Journal Social Indicators Research
- Online ISSN 1573-0921
- Print ISSN 0303-8300