To give or to take money? The effects of choice on prosocial spending and happiness

Abstract

ABSTRACT Previous studies show that spending money on others makes people happier than spending it on themselves. The present study tested and extended this idea by examining the role of active versus passive choice and default choices. Here, 788 participants played and won money in a game, from which some of the earnings could be donated to charity. Participants were randomized to five conditions (control, passive or active choice, default to self or charity). Three measures of subjective well-being (SWB) were used. The results show that people who donated money were happier than people who kept money for themselves, and that active choices elicited significantly more negative affects than passive choices. Also, more people chose to keep the money when this was the default. Last, the greatest effect on happiness was to change from the set default. The results are in line with previous findings in positive psychology and decision making.