Money buys happiness, but time more valued

MONEY can buy happiness but home and free time is more important for those with a university degree, a new study says.

People without a degree place a higher value on their neighbourhood, their pay and job prospects when asked to rank their overall happiness, Dr Ioana Ramia of the University of NSW says.

Using data collected by Melbourne University from a national sample of more than 8000 people, Dr Ramia investigated what made people happy.

"The tertiary educated will think of their homes and their free time more, and the non-tertiary educated will think more about their employment opportunities, of their finances, of their neighbourhood," Dr Ramia told AAP.

"While they're answering the same question, they're assessing different things."

Dr Ramia said people with degrees value free time and their home when considering their happiness "much more" than those without university qualifications.

"They probably work professional jobs, they've become overworked, loaded with work to the point that they value their free time and they value their time at home."

The happiness of those who haven't completed university study was correlated to how much money they had, but not exhaustively.

After hitting the median income for non-tertiary educated people, more money doesn't increase happiness.

But for those with a degree, it's the opposite.

Money doesn't affect their happiness, until they're close to running out.

Dr Ramia said it's possible to draw two conclusions from the data.

"Tertiary-educated people tend to concentrate in metropolitan areas where there are housing shortages.

"If there is shortage of one item, such as housing, people who are more affected by it will respond by valuing that item more."

The data may also indicate "individualistic versus community-oriented individuals," she said.

"Non-tertiary educated people seem more community oriented as they care more about their involvement in their neighbourhoods while tertiary-educated people care more about their home."

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