Definition of Old Money Versus New Money
29 SEP 2017
“Old money” and “new money” are terms that describe two different classes of people who have money and, equally, the money that they possess. Old money usually refers to people who are part of long-established, upper-class families and who have wealth that has been inherited over several generations. New money is that which has been made recently, often by entrepreneurs, entertainers or athletes.
1 Acquiring Money
Old money is inherited and may be in the form of property, trusts or other investments. As such, it may be at greater risk of loss or dissipation due to the current holders' lack of financial acumen. New money has been acquired directly and recently by those who hold it, and who, depending upon their attitudes and personalities, might choose to spend or hoard it. Those who have made new money are often alluded to, somewhat disparagingly, by the term “nouveau riche.”
2 Spending Style
Old money tends to be invested in grand, historically significant properties, antiques, art collections and classic cars, and couture. Often, those who have old money may be asset rich but cash poor, so they may buy few, if any, new possessions. Much of their available money may have to be spent on property maintenance and keeping up appearances. New money, by contrast, tends to be spent on the latest, luxury goods, including lavish mansions, holiday properties, designer clothes, extravagant and showy jewelry, automobiles, boats and even private planes.
3 Social Standing
Today, celebrities from the worlds of film, TV, music and fashion are some of the greatest examples of new money, together with those who have made large amounts from sports or international trade. These people may have high social standing and be in great demand due to their celebrity status. Old money has a much lower public profile, although individuals may be courted for their status and influence, as well as the network of connections they bring.
People who have old money are regarded as restrained and possessing impeccable taste. Their focus tends to be on education, elegance and etiquette. Those with new money are generally more ostentatious and often may be seen in the media throwing or attending lavish parties. Stereotypically, their behavior is extravagant, showy and self-indulgent. F. Scott Fitzgerald's book, "The Great Gatsby," is a well-known social commentary on the divide between new and old money in the ostensibly carefree days of the 1920s.
5 Historical Significance
Throughout many societies in the world, the concept of new money and old money is closely linked to historical status. Those with old money might be able to trace royal or aristocratic connections that go back many generations. Even in countries such as the United States or France, which have no aristocratic class, this aspect still seems to be highly prized and respected.