Hang around money long enough and you'll eventually encounter the idea of old money vs. new money. The roots lie in how the money is made. Let’s dive into the fascinating details.
What is “old money”?
Old money is a cultural phrase referring to wealth that's been inherited or passed down over generations. The bulk of the money is inherited vs. earned. Think of famously enduring wealthy families with last names like Rockefeller, Walton, or Hilton. These folks didn't just strike it rich recently; their wealth has been passed down and/or evolved through generations.
What is “new money”?
New money, on the other hand, refers to wealth that is directly earned, often recently, without inheritance. When people talk about new money, they might think of individuals who've earned their wealth on their own. Entrepreneurs and moguls like Oprah Winfrey or Jeff Bezos are usually considered new money. They're self-made billionaires, having created their fortunes based on their own work rather than inheriting it.
Are there other differences?
On the face of it, the primary difference between new money and old money is how you got it. The generalization implies that one is earned while the other is passed down. In reality, however, everyone’s situation is unique.
FAQs
Q: What is the primary difference between old money and new money?
A: While there may be no technical monetary difference, as a social concept, the difference between old money and new money is in the source of the wealth. Old money refers to wealth by way of inheritance passed through generations. New money refers to the idea of primary wealth earned by an individual in their own lifetime.
Q: Can new money become old money?
A: If new money is successfully preserved and passed down through generations, it can become old money!
Q: Is old money more respected than new money?
A: This is a completely subjective idea. Some cultures or societal subsets may view old money more favorably due to values around heritage and tradition. Others might appreciate new money due to the innovation or hard work that created it.
Q: Is old money or new money wealth more secure?
A: All financial circ*mstances have their risks and benefits.
Q: What is an example of old money?
A: The Vanderbilt or Rockefeller families are examples of old money, as their wealth has been inherited over generations. You can also find examples of “old money” on current billionaire lists, including the Walton family of Walmart fame.
Q: What is an example of new money?
A: Well-known tech moguls like Elon Musk or Bill Gates, who earned their wealth in their own lifetimes, are examples of new money.
No matter what you think about the concepts of new money vs. old money, one thing is true: You can always improve how you manage your money! Start building your family's wealth today.
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