In the eleventh chapter of our Psychology textbook, there was a section devoted to the different elements of life that make people happy, along with the myths and realities behind true happiness. One misconception the authors identified was the idea that money makes us happy. The authors argued that money may allow for happiness in the short-run, but it cannot buy long-term happiness. Although I agree with the statement that money cannot buy happiness, I don't believe that this is always the case.
The authors noted that people who graduate from college tend to be happier than people who don't. But ironically, college is one of the biggest investments that many people make. Money is one of the most important factors that affect students' decision of what college to go to, or if any at all. In addition, people who graduate from college are likely to earn more money in the future, which may indicate that it is again the money that makes people happy and not necessarily college.
The act of giving was also mentioned as being a factor in producing happiness. Interestingly, the supporting example for this idea involved an experiment where participants were given cash; the results showed that spending money on others creates greater happiness than spending money on ourselves. Again, whether we give or take, it seems as though the use or exchange of money is necessary.
Because almost everything in the world has an explicit cost, it is difficult to detach the different possessions in our lives from their monetary value. I agree that money can't necessarily buy happiness, but I believe that money is greatly associated with happiness. I think that it is largely a matter of how one uses their money that contributes to how happy one will be.