☕ A $7 cup of happiness

The answer is “yes” for 6 in 10 Americans (59%), including 72% of Millennials and 67% of Gen Z. 

To put a price tag on it, people say they need a salary of $284,167 to be happy, and Millennials put that number at $525,947, according to new research from Empower. 

Based on this data, The Wall Street Journal reported that average Americans would need almost a 50% raise to feel content and less stressed, though employers are planning on an average pay increase of 3.9% in 2024* for nonunion employees.  

So what’s the secret to financial well-being? (Hint: just 17% say it’s net worth.) Check out the study findings and this week’s headlines to see the relentless pursuit of happiness in life, work, play – and of course, money.  

– The Editors

MONEY

💨 That was quick: Less than five days after Sam Altman was ousted in a board coup from OpenAI, considered one of the world’s most valuable startups, he was reinstated as CEO.* A quarter of people report switching jobs at least once in the last year (24%), including 45% of Gen Z. They may have been motivated by a cyber stressor: More than half (51%) of young Americans say AI developments make them worried about job stability. 

🔼 Gobbled up online: Consumers spent a record $9.8 billion* shopping online on Black Friday, an increase of 7.5% over last year’s high. Compared to sales in October, the most popular purchases were electronics (up 152%), apparel (up 136%), toys (up 132%) and jewelry (up 114%). This splurge may not be surprising to 1 in 5 Americans who say financial happiness means having nice things, which is particularly valued by younger generations (31%). 

💲 Crypt-uh oh: Changpeng Zhao, now former CEO of Binance, the world’s largest cryptocurrency exchange, pleaded guilty to criminal charges as part of a $4.3 billion* settlement with the U.S. Department of Justice. The news comes after FTX founder and (ex) CEO Sam Bankman-Fried was convicted of fraud and conspiracy in November. For investors looking for alternatives, a chat with a financial pro may be prudent: Americans rank getting good money advice (63%) as a key determinant to financial happiness. 

🏠 Real estate in the red: The number of homeowners selling their houses for less than they paid is moving: More than 3% of U.S. homes sold at a loss with the median deficit of around $40,000.* In San Francisco, 1 in 7 owners lost a median of $122,500; Detroit, Chicago, Cleveland and New York closely follow. Though nearly half of Americans (45%) define financial happiness as owning a home, an ongoing inventory and affordability crunch has created challenges for sellers and buyers alike. 

LIFE

I’ll take two 

Remember that $2 bill you have in your cash stash? Turns out it could be worth up to $5,000.* 

U.S. Currency Auctions estimates that uncirculated $2 bills from 1890 could sell for up to $4,500, and most bills between 1862 and 1917 for at least $1,000. 

That could come in handy – not only for your bank account, but for your well-being.  

Though 7 in 10 Americans (71%) believe more money would solve most of their problems, it turns out that a little goes a long way. For a third (32% overall, and 37% of Boomers) a relatively attainable gain of $15,000 would make a meaningful impact in their lives, boosting people’s feeling of financial happiness for six months. That number surges to 42% with a $25,000 windfall (50% of Boomers), and just $5,000 would do it for 17%.  

Search those old piggy banks, as incremental financial gains can bring a ROH (Return on Happiness).

___

💸  Speaking of things that make you smile: Do you believe money can buy happiness? 

• Yes
• No
• I'd like to try

___

WORK

Zooming in on a changing workforce  

A new generation is about to have more seats at the conference table: Gen Z is expected to overtake Boomers* in the workforce by next year, according to a new Census data analysis.  

Boomers were the largest generation* until 2011, and Gen Xers held that position until 2018. Millennials have been the biggest workforce since then and won’t be outpaced by Gen Z until the early 2040s.  

In addition to cultural shifts like creating new office lingo (main character energy only), Gen Z may already be having a significant influence on the workplace: According to new Empower research, 79% of Gen Zers say a better work/life balance would bring them more happiness. Overall, 75% of Americans see work as transactional and a majority (77%) say they work to live rather than the other way around.

PLAY

A $7 cup of happiness  

For many, happiness is a cup of coffee. That, and the spending flexibility to buy that coffee as a daily treat: 62% of Millennials say they’re willing to pay $7 for a daily coffee because of the joy it brings. 

Just ask chains like Starbucks, whose holiday-themed drinks seriously serve up results, as the company saw a 20% surge* in visits on the day its Pumpkin Spice Latte launched earlier this year. Now in its 25th season, its “red cup” lineup of fan-favorite flavors helped the coffee brand brew up a record revenue with 10% comp growth* last year.  

One thing’s for sure: Better make it iced. Cold beverages at Starbucks accounted for 75% of drink sales in Q3 of 2023.

As of November 27, 2023, EAG holds shares of Starbucks (SBUX) in advisory client accounts.

*Third-party data is obtained from sources believed to be reliable; however, Empower cannot guarantee the accuracy, timeliness, completeness, or fitness of this data for any particular purpose. Third-party links are provided solely as a convenience and do not imply an affiliation, endorsement, responsibility, or approval by Empower of the contents on such third-party websites.

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