The old money vs. new money debate has existed for many years. Wealth among old money families are typically passed down from generation to generation. They never have to worry about running out of cash. New money families, on the other hand, have earned their fortune. They’ve worked hard to get where they are and want everyone to know it.
Some people think old money represents tradition, stability, and class, while new money is flashy, reckless, and vulgar. In this blog post, we will explain the differences between these two types of money, and you can decide which one you prefer.
New Money vs. Old Money: What’s the Difference?
You may think that the simple answer to this question is that old money is inherited while new money is earned. However, there is more to this debate than how money is acquired. There are other issues to consider in this debate, including:
- The source of wealth,
- How either side spends their money, and
- The social perception of old money and new money.
Before we delve into the differences, let’s understand the meaning of old and new money.
The Value of Old Money
For many, “old money” conjures up images of wealth and privilege. Old money families belong to the high-class society often associated with private schools, country clubs, and expensive cars.
But what exactly is old money? Old money alludes to families who have been wealthy for many generations. They typically have a long history of aristocratic or noble ancestors. In some cases, the inherited wealth may date back centuries, and it can often be associated with great power and privilege. In many ways, old money represents a different era in which social status was often more important than personal achievement. Some still revere old money today, while others view it as a symbol of inequality.
Does Old Money Still Exist?
It depends on how far you want to go. Old money families in Europe date back further than those in America. They may not want to be noticeable, but their power and influence are undeniable. Regardless of how you feel about old money, you cannot deny its history and impact. So yes, old money still exists and is a force to be reckoned with.
What is New Money?
In contrast, new money families are those who have only recently become wealthy. They may have made their fortunes through business or inheritance. They lack the long history of old money families, and many represent rags-to-riches stories.
Recently, there has been an increase in the number of self-made millionaires. These individuals have amassed their fortune through hard work, talent, and luck. While some have come from wealthy families, others have started with a little more than determination and a good idea.
Regardless of their background, these entrepreneurs have all had one thing in common: they were willing to take risks. They believed in their ability to succeed, even when others doubted them. In many ways, they are the embodiment of the American Dream. Their stories are a reminder that anything is possible with enough grit and determination. While some may view them as lucky, they are also a testament to the power of hard work and perseverance.
Old Money Wealth Source
The early industrialists often own old American money. Many of these families made money even before the revolution in the late eighteenth century. The old money families were primarily planters, merchants, ship owners, and slave traders. They also traded in textile, dry goods, fur, and sugar. They passed down the wealth from one generation to another, with each member adding more to the amount.
Some examples of old money in America include Roosevelt, Cabot, Lowell, and the Rockefeller family. In Europe, old money tends to be more entrenched in aristocratic or royal traditions. In Europe, most of the old money families acquired money in the traditional economies through a business such as fashion retailing and luxury goods.
They can conserve wealth and pass it on from one generation to another. The British royal family is one of the most prominent examples of an old money family. They have held onto their power and privilege for centuries, amassing a vast fortune.
New Money Wealth Source
Many new money families have come into wealth and fame relatively recently. Most have made money in entertainment, sports, technology, and entrepreneurship. Some new money examples include Mark Zuckerberg (Facebook), Bill Gates (Microsoft), and Jeff Bezos (Amazon). In recent years, we have also seen a surge in the popularity of athletes and celebrities as other new money examples. The Kardashians are a prime example of a new money family. These big names often command large sums of money for their endorsements and appearances and have used their platform to grow their brand and expand their business empire.
While old money owners may be more established, new money families are often more aggressive in pursuing wealth and power. As a result, they have become some of the most significant sources of new money. While some people may be critical of this trend, there is no denying that athletes and celebrities significantly impact the economy.
Old Money vs. New Money Behavior Examples
One big difference between the two wealthy groups is how they behave and spend money. Old money is often associated with class and luxury, while new money is known for its flashy lifestyle.
How Does Old Money Behave?
Old money families generally have more conservative spending habits and tend to display their wealth more subtly. They do not often spend extravagantly. Instead, use their money to influence decision-making and to protect their wealth.
Old money individuals have sound financial planning. The younger generations have trust funds and can access a certain amount of the money monthly or quarterly. Some families may opt to make huge payments when they reach a certain age.
They spend the money sparingly as it is inherited wealth. Many old money families teach their children they need to preserve and multiply it for the next generation. Old money also buys luxury goods like nice cars, clothes, and homes, but they often avoid the limelight and flashy life, and sometimes it may not be easy to know how much money they have. Old money also likes to go on vacations too. However, instead of staying in hotels, they own vacation homes, such as beach homes, summer homes, and ski homes.
Most of the time, old money makes large purchases; they are well-planned, and most are also investors. They tend to invest in quality over quantity and are not afraid to splurge on items that will last for years or even generations.
New Money Spending Habits
In contrast, new money families have acquired their wealth relatively recently. They are not as good at wealth management. They are often more ostentatious in spending and may not have the same social connections as old money families. They see the money as theirs alone as they have earned it through their effort and therefore can spend it as they wish. Unlike the old money families, they don’t feel obligated to preserve the wealth and pass it on to the younger generation.
They love to flaunt their wealth and let everyone know they are rich. Newly wealthy individuals are associated with frivolous spending and will buy designer labels, flashy cars, and big mansions to show off their wealth. Because of their lifestyle, some new money families have blown their wealth in a short period and have nothing to leave behind for their descendants.
It is, however, important to note these spending habits for both new and old money are largely stereotypical and do not always depict the big picture. Some new money individuals have great financial discipline, while some old money families have no restraint with their spending and have squandered all the wealth inherited from their parents.
Many old money families use their generational wealth to forge strong political connections. They are influential and respected. In terms of social standing, society views new money individuals as a lower class but more generous.
How Can You Tell If Someone Has Old Money?
Old money is often associated with social class and prestige. People with old money are often seen as more sophisticated and refined than those with new money. They tend to be well-educated and often have prestigious jobs. In addition to their economic success, old money families have good connections and influence many political decisions. These connections can give them even more influence and social clout.
American old money families like the Roosevelts, Cabots, and Lowells are some of the most powerful and influential people in the United States. They often use their wealth and influence to further their political, business, or philanthropic interests. They often shape essential decisions such as tax policies to protect their wealth.
Old money and new money also have different personalities. Although new money lacks the prestige of old money, they are viewed as more generous and accessible. New money individuals are often more considerate and willing to part with their wealth to help the less fortunate. On the other hand, old money focuses on growing and protecting their wealth and often comes off as cold and unkind.
While old money is still respected, society is showing more appreciation for individuals who have established themselves and achieved financial success by defying all odds. There has, however, been a shift in recent years towards a more anti-wealth mentality. People are becoming more critical of those who have a lot of money, regardless of how they got it.
Why Old Money Looks Down on New Money
The key differences between old and new money can create a rift between the two groups, which can be challenging to overcome. Both have deep prejudices about each other. However, most perceptions are stereotypes that are inaccurate for old or new money individuals.
Old money hates the newly rich because they view them as low-class individuals who lack affluent families’ social graces and etiquette. They hate their flashy lifestyle but secretly envy their freedom. Old money often comes with a sense of responsibility and duty, while new money may be seen as more accessible and liberated.
Old money also hates new money because it is a sign of change. Old money hates the idea that someone could come along and disrupt their way of life. They view new money as cocky individuals who always need to show off their wealth. They believe new money is earned through luck or connections rather than hard work. As a result, they often look down on those who have recently become wealthy because they think they didn’t deserve their wealth.
Why Does New Money Hate Old Money?
New money often looks down on old money because they believe it is a bunch of lazy people who have never had to work a day. They think that the old money is out of touch with reality and that they don’t deserve their wealth. They perceive them as spoiled, inconsiderate, and boring. Wealth is very divisive, and it’s easy to see why new and old money would hate each other.
The Bottom Line: So Which is Better?
Wealth can bring opportunities and challenges regardless of the type of money a family has. Old money families often benefit from social connections and experience, while new money families may have more energy and drive.
So it depends on your perspective. Old money may be the way to go if you value tradition and responsibility. But if you prefer freedom and flexibility, new money may be your style.