What gives more happiness is spending money on experiences such as vacations or attending concerts compared with buying stuff such as gadgets or clothes, most would agree with this. Older studies, after all, revealed that experiences made people happier, but the journal study on this reveals why it's a better experience for enjoyment than memories.

Studies have found that experiences, like taking a vacation or going to concerts, typically yield more happiness than material purchases, such as jewelry or electronics. However, does happiness occur at the time of experience or is it more closely linked to the build-up or reminiscence? It is quite surprising, but one previous study determined that individuals often scored their vacations as being more pleasurable after they had returned home rather than while actually on vacation.

This new research, however, answers the question clearly: experiences deliver greater happiness in the moment, as well as during anticipation and remembrance.

“Experiences thus appear to be a more promising route to enhancing well-being than possessions, irrespective of when happiness is measured,” concluded the researchers.

The first study: Comparing happiness after purchases

In the first experiment, researchers recruited 2,635 adults with an average age of 32. Participants received text messages at random times during the day, asking how they felt "right now" on a happiness scale from 0 (very bad) to 100 (very good).

Then, the question was whether or not they had bought something in the last hour, be it a material purchase, such as clothing or electronics, or an experiential one, like dining out or attending an event.

The outcome? Those who had recently enjoyed an experience reported higher happiness levels than those who had bought material items, regardless of how much money they spent.

“It would be unfair to compare a shirt to a trip, but when we account for price, we still see this result where experiences are associated with more happiness,” said Amit Kumar, the lead author and a marketing professor at the University of Texas at Austin.

The second study: What if the same person buys both?

The concern here is whether happier people are, by nature, attracted to experiences more than to material goods. The researchers designed a second experiment for this test. The researchers asked 5,254 adults with an average age of 31 multiple times during the day whether they had made a material or experiential purchase in the past hour. After each answer, the participants' happiness was measured.

Even when that person was buying both types of goods, happiness was still consistently higher for experiences.“We still observed the same effect,” said Kumar. “When the very same person was consuming an experience, that was associated with more happiness.”

Indeed, it seems that experiences create greater satisfaction, despite the fact we have more time with material objects. Perhaps it is because such experiences connect us with others, make long-term memories happen, and feel unique, whereas material goods can readily lose their novel quality.

Who participated in the study?

The participants were mainly from WEIRD societies, that is, Western, educated, industrialized, rich, and democratic societies, mainly in the U.S. Although this means the findings may not apply everywhere in the world, the study included one of the largest and most diverse participant groups for this topic.

The study provides a simple lesson for living a happier life: spend more on experiences rather than material goods. Whether it is dining out, traveling, or attending a concert, these moments offer more joy—both in the moment and in memory.

As the researchers concluded, “At least among educated people in a rich, industrialized, and democratic part of the Western world, experiences provide more in-the-moment happiness than material goods.”