Old Money vs. New Money has been a defining feature of American society for centuries.
It shapes how individuals and families approach wealth, status, and social mobility.
Established or patrician families, Old Money families have been wealthy for generations.
On the other hand, New Money families have acquired their wealth more recently.
Often through entrepreneurship, innovation, or other means of upward mobility.
The differences between these two groups extend far beyond their financial resources.
They encompass broader cultural, social, and political differences.
In this article, we will explore the differences in the habits, values, and behaviors of Old Money vs. New Money families.
Old Money vs New Money
The main difference between Old Money and New Money is the source of their wealth and social status.
Old Money refers to families who have inherited their wealth and social status from previous generations.
This often means they have had generations of financial stability and have grown up with a sense of cultural values and traditions from their ancestors.
Old Money families' wealth is typically invested in assets like real estate, stocks, and bonds, and they tend to have significant influence over politics and culture.
On the other hand, New Money refers to individuals and families who have acquired wealth through entrepreneurship, innovation, or other means, rather than through inheritance.
They often do not have the same level of cultural refinement and traditions as Old Money families, and their wealth may be seen as more flashy or ostentatious.
New Money families often accumulate their wealth in a shorter time, and their wealth may be more heavily invested in industries like technology, entertainment, or finance.
Overall, the key difference between Old Money and New Money is that Old Money is inherited wealth and social status, while New Money is self-made wealth and social status.
This often leads to differences in values, attitudes, and lifestyle choices between the two groups.
What is Old Money?
Old Money refers to families who have inherited their wealth and social status from previous generations.
These families often have a long history of financial stability and have grown up with a sense of cultural values and traditions passed down from their ancestors.
Their wealth is often invested in assets like real estate, stocks, and bonds, and they tend to have significant influence over politics and culture.
Old Money families are typically associated with refinement, elegance, and understated luxury.
They often have established social networks and attend exclusive events and clubs.
Old Money values are often centered around preserving family wealth and legacy, cultural preservation, and maintaining social status.
The old money aesthetic refers to a style and sensibility associated with the wealthy elite who inherited their wealth and social status rather than earning it themselves.
This aesthetic is characterized by refinement, elegance, and understated luxury.
Old-money families are upper-class compared to new-money individuals, for example, Rockefellers.
Rockefellers made their fortune in the oil industry in the late 19th century and early 20th century.
Today, the family is worth approximately $11 billion.
Examples Of Old Money
- Astor: one of the wealthiest in American history, made its fortune in the fur trade and real estate.
- Rockefeller: known for their oil and banking businesses, has been wealthy for generations.
- Vanderbilt: who made their fortune in shipping and railroads, were among the wealthiest families in America in the 19th century.
- Kennedy's: long political and social prominence history can be traced back to wealthy business interests in the early 20th century.
- Carnegie's: known for their steel business, has been one of America's most prominent and philanthropic Old Money families.
What is New Money?
New Money refers to individuals and families who have acquired wealth through entrepreneurship, innovation, or other means, rather than through inheritance.
These individuals have typically accumulated wealth in a shorter time than Old Money families and may have made their fortunes in industries like technology, entertainment, or finance.
New Money families are often associated with a more flashy and ostentatious display of wealth, compared to Old Money families, which are more likely to be understated and conservative.
They may have different values and cultural norms, often centered around pursuing material success and social mobility.
New Money families may lack the social status and refinement of the Old Money class, but they can often wield significant influence and accumulate enormous wealth.
They may use their wealth to invest in businesses, philanthropic causes, or to support political causes.
Overall, New Money is a term used to describe individuals and families who have accumulated wealth through their efforts rather than through inheritance and who often have different values and cultural norms than Old Money families.
Examples Of New Money
- The Gates family: through Microsoft, is one of the wealthiest families in the world.
- Mark Zuckerberg: the founder of Facebook, has over $100 billion fortune.
- The Walton family: founded Walmart, worth over $200 billion.
- Jeff Bezos: the founder of Amazon, has over $150 billion net worth.
- Elon Musk: the founder of SpaceX and Tesla, is worth over $200 billion.
These families represent some of our time's most successful and innovative entrepreneurs.
The Gilded Age
The Gilded Age is a term used to describe American history from the late 1800s to the early 1900s. It is characterized by rapid industrialization, urbanization, and economic growth.
It was a time of great wealth and prosperity for a small group of people, but it was also marked by social and economic inequality, corruption, and political instability.
At the same time, a new class of wealthy individuals emerged, known as the “New Money” class.
These individuals had made their fortunes through entrepreneurship and innovation rather than inherited wealth.
They often lacked the social status and refinement of the Old Money class, but they could nonetheless wield significant influence and accumulate enormous wealth.
On the other hand, the Old Money class comprised families who had inherited their wealth and social status from previous generations.
They were often seen as the guardians of traditional values and cultural norms and maintained their privileged position through exclusive social networks and prestigious educational institutions.
Caroline Schermerhorn Astor (1830-1908) was a prominent member of New York City's high society during the Gilded Age.
She was the wife of William Backhouse Astor Jr., a member of the wealthy Astor family.
She was known as the “Mrs. Astor” of her time.
Caroline Astor's influence over New York's social scene continued well into the 20th century, and her legacy as a symbol of the Gilded Age and New York high society continues.
The tension between Old Money and New Money was a defining feature of the Gilded Age, and it continues to be a prominent theme in American culture and literature.
What Does Old Money vs New Money Mean In The Great Gatsby?
In “The Great Gatsby,” by F Scott Fitzgerald, “Old Money” refers to wealthy people who inherited their wealth from previous generations.
In contrast, “New Money” refers to the newly rich, who acquired wealth through business, entrepreneurship, or other means.
Old Money characters in the novel, such as Tom Buchanan and Daisy Buchanan, are born into families with long-established wealth, social status, and privilege.
They typically have a sense of entitlement and superiority over the New Money characters, whom they view as crass and lacking refinement.
On the other hand, New Money characters like Jay Gatsby made their fortunes through hard work and determination.
They are often depicted as flashy and ostentatious, eager to display their newfound wealth through extravagant parties, cars, and homes.
The contrast between Old Money and New Money is a significant theme in the novel, reflecting the changing social landscape of the 1920s, in which the traditional class system was being challenged by a rising middle class and increased social mobility.
New Money vs Old Money Behavior
New and Old Money families often have different behaviors, reflecting their social and cultural backgrounds.
Old Money behaviors:
- Old Money families tend to be understated and conservative in their habits, often favoring traditional values and cultural norms.
- They may attend exclusive events and clubs but will likely do so quietly and without fanfare.
- They often invest their wealth in assets like real estate, stocks, and bonds and are more risk-averse.
- They may place a high value on education, cultural refinement, and maintaining family legacy and traditions.
New Money behaviors:
- New Money families tend to be more ostentatious and flashy in their habits, often flaunting their wealth and status through material possessions.
- They may invest their wealth in newer industries like technology or finance and may be more willing to take risks with their investments.
- They may place a high value on entrepreneurship, innovation, and social mobility.
Overall, Old Money families tend to have a more reserved and conservative approach to wealth and status.
In contrast, New Money families may focus more on building wealth and achieving social mobility.
These differences in behaviors often reflect broader differences in values and cultural norms between the two groups.
How Old and New Money Manage Their Finances
Old money vs new money families manage their finances differently, reflecting their attitudes and values toward wealth.
Old Money management:
- Old Money families typically have a long history of financial stability and are often conservative in their financial management.
- They tend to focus on preserving their wealth and maintaining financial independence over time.
- They may have a diversified portfolio of investments, including real estate, stocks, and bonds, and may prioritize investing in assets expected to generate stable, long-term returns.
- Old Money families may also place a greater emphasis on philanthropy and give back to their communities.
New Money management:
- New Money families tend to be more entrepreneurial and may have a more aggressive approach to managing their finances.
- They may be willing to take more risks with their investments to achieve high returns and build their wealth more quickly.
- They may also be more likely to invest in newer industries like technology or finance, where there may be higher potential returns but also higher risks.
- New Money families may also be more likely to spend their wealth on luxury goods and experiences, focusing on enjoying their wealth's benefits in the present.
Old Money families tend to be more conservative and focused on long-term financial stability.
New Money families may be more willing to take risks and seek high returns to build their wealth more quickly.
Spending Habits
Old money vs new money families tend to have different spending habits, reflecting their values and attitudes toward wealth and status.
New Money spending:
- New Money families tend to be more flashy and ostentatious in spending habits.
- They may prioritize quantity over quality and invest in more showy, status-symbol items like luxury cars, yachts, and designer clothing.
- They may also spend money on experiences focusing on enjoying the benefits of their wealth in the present.
- New Money families may be more likely to spend their wealth on material possessions rather than investing it in long-term assets.
Old Money spending:
- Old Money families tend to be more conservative and understated in spending habits.
- They may prioritize quality over quantity and invest in high-quality, timeless items like luxury clothing, fine art, and antique furniture.
- They may also spend money focusing on personal growth and giving back to their communities.
- Old Money families may be more likely to invest their wealth in long-term assets like real estate and stocks.
Overall, Old Money families tend to be more conservative and focused on investing their wealth in long-term assets.
In contrast, New Money families may be more focused on enjoying the benefits of their wealth in the present through showy displays of status and material possessions.
Nicolas Cage reportedly lost his $150 million fortune between 1996 to 2011 on expensive artifacts, real estate, and cars.
Another famous new money person that lost a fortune is Michael Jackson.
A forensic accountant estimated that Michael Jackson owed between $400 and $500 million in debt.
He had to file a foreclosure on his Neverland property and had various loans he couldn't pay.
Finally, Dennis Rodman and Mike Tyson are a few more celebrities that lost their wealth.
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Frequently Asked Questions
Do those with old money hold a negative view of those with new money?
Those with old money can look down on those with new money.
They may perceive them as lacking the social graces and cultural refinement that come with generations of wealth.
What distinguishes old money from new wealth?
Old money typically refers to families who have been wealthy for multiple generations.
They have inherited their wealth, while new wealth is an individual who has recently acquired it.
Are there still families today who are considered old money?
Old-money families still exist today, particularly among the social elite and in specific geographic regions.
Certain areas, such as the Northeastern United States, have a long history of wealth and privilege.
What strategies do old-money families employ to maintain their wealth?
Old-money families often employ strategies such as investing in real estate and other long-term assets.
They also diversify their portfolios and pass down wealth through trusts and other financial instruments.
This ensures their continued financial stability and success across generations.