How does money affect a person's happiness?

Abstract

Subject. The article assesses the impact of income on life satisfaction and level of happiness. Objectives. The aim is to consider the effect the money has on life satisfaction, and to unveil economic determinants of relative well-being. Methods. We employ methods of scientific and information base, synthesis of obtained data. Works of domestic and foreign scientists on happiness of the society and individuals and on the impact of income on human well-being serve as methodological and theoretical basis of the study. Results. The Russian Federation faces socio-economic inequality. The situation is getting worse every year. Income inequality is rising. An entire generation of children is growing up in poor families. They will endure all mental problems of their parents in adulthood. Less than half of Russians are satisfied with their financial situation. Conclusions. The country's economy should be socially oriented, enterprises and businesses should not only seek super profits, but also take into account the interests of employees and pay them decent compensations. High salaries and wages drive economic growth. They improve the level of happiness of people. The country needs a step-by-step program to increase the income of citizens, which will increase the level of happiness.