In December of last year, Michael Dell made headlines by announcing a gift of more than $6 billion to encourage families to take advantage of the new Trump Accounts, and more recently announced a platform through which others can join those efforts. This is an incredible act of generosity and a way for more people to get involved. But unfortunately, it’s counter to broader trends in American society.

Americans are more prosperous than at any point in history, yet strangely less happy and less generous with others. Household wealth has soared, consumer spending is strong, and most Americans enjoy material comforts unimaginable a century ago. Yet we give a paltry 2% of GDP each year, and as many as 4 in ten Americans give nothing at all.

This decline is more than a financial trend; it is a cultural warning sign. Generosity is one of the strongest predictors of human flourishing — as or more reliable than income, consumption, or status. When a wealthy nation and its citizens eschew generosity, it signals not only a shift in behavior but a deeper erosion in meaning, connection, and civic health.

A more generous America would also be a happier America. The gifts we give — of money, time, and attention — create the bonds that hold communities together and the meaning that sustains individual lives. In a prosperous nation still searching for fulfillment, generosity may be the most powerful investment we can make.

I’ve spent years researching how money can enable rather than undermine human flourishing, a topic I explore in my new book, Good Money. Of all the ways we use money — earning, spending, giving, and investing — giving is the one most directly tied to the good life. Yet American generosity is stagnating.

The root of this problem lies in a modern paradox. We are materially richer, but we feel less secure. Psychological studies show that as incomes rise, expectations rise even faster. People compare themselves upward — to colleagues, neighbors, or the wealthy strangers they encounter online — and begin to doubt they have “enough” to be generous. When “enough” is always somewhere just beyond the horizon, giving always feels premature.

This mindset robs us twice. It deprives our communities of the resources they need to thrive, and it deprives us personally of one of the most reliable sources of lasting happiness. The data is clear. Spending money on others produces more joy than spending on ourselves. Generous people report stronger relationships, greater purpose, and even better physical health. And these individuals tend to live longer, experience less stress, and feel more connected to those around them.

So why do we give so little? One reason is that we expect generosity to come from inspiration — a moment of emotional clarity or overwhelming gratitude. But inspiration is fleeting. Generosity, like physical fitness or skill development, requires practice and intention. This is why religious communities that practice “tithing” (setting aside a portion of income each month for giving) are meaningfully more generous than others. Pre-commitment to giving, like deciding in advance to give a percentage of our income, makes giving more seamless.

Another obstacle is the belief that small acts do not matter. Many people assume that unless they give substantially, their contribution is insignificant. Yet history and research prove otherwise. Consistent small gifts, compounded over years, have built hospitals, fed families, supported scholarship students, and sustained countless local nonprofits.

The first step toward greater generosity is to treat it as a purposeful part of financial life rather than an afterthought. The most generous households are not always the wealthiest; they are the ones who decide in advance that giving will be part of who they are. When generosity becomes an intentional commitment, such as saving for retirement or paying down debt, it takes root and grows.

Make giving an extension of identity rather than an obligation. People derive deeper satisfaction when their giving reflects the stories and values that shape them: faith communities, alma maters, local charities, youth programs, or causes tied to their passions or experiences.

Giving has a profound and lasting impact on families, and those in which generosity becomes a shared practice flourish. When parents involve children in choosing causes, volunteering together, or discussing charitable decisions, generosity becomes part of family culture. These habits shape children for life, grounding them in gratitude, empathy, and shared responsibility.

And generosity extends beyond money. Some of the most meaningful giving involves time, mentorship, encouragement, and hospitality. When finances feel tight — as they do for many — these forms of generosity remain powerful. Time spent visiting an elderly neighbor, coaching a youth team, teaching a skill, or simply showing up for others can change lives, including our own.

Ultimately, the best time to start living a life of generosity is now. Waiting for the perfect time is the surest way to ensure generosity never becomes a central part of our lives. The truth is that almost no one feels entirely ready to give. But those who begin anyway discover quickly that generosity does not diminish them. It expands them.

***

John Coleman is Co-CEO of Sovereign’s Capital and the author of Good Money: Six Steps to Building a Financial Life with Purpose. Follow him on Substack at https://onpurpose.substack.com.

Menu

‘Buying’ A Rich Life Through Giving