Old money

This article is about the socioeconomic term. For other uses, see Old money (disambiguation).

Old money is "the inherited wealth of established upper-class families (i.e. gentry, patriciate)" or "a person, family, or lineage possessing inherited wealth." The term typically describes a class of the rich, who have been able to maintain their wealth across multiple generations.

United States

American locations such as the Upper East Side of Manhattan; Westchester County, New York; Long Island's North Shore; Fairfield County, Connecticut; Newport, Rhode Island; Boston's Back Bay, Massachusetts Avenue, and Beacon Hill; Weston and Wellesley, Massachusetts; Philadelphia's Main Line; and the Grosse Pointe area of suburban Detroit, Michigan are associated with old money. Ironically, these areas' inhabitants that are colloquially described as "old money" are almost always descendants of the people the term "nouveau riche" (new money) was originally coined to describe: nineteenth century industrialists, bankers, and builders. Traditionally, wealth was associated with landowning and these Gilded Age fortunes made money in a new way, hence the term new money. Edith Wharton, among Gilded Age America's greatest chroniclers, referred to industrialists and their ilk as "brazen new money".

Wealth—assets held by an individual or by a household—provides an important dimension of social stratification because it can pass from generation to generation, ensuring that a family's offspring will remain financially stable. Families with "old money" use accumulated assets or savings to bridge interruptions in income, thus guarding against downward social mobility.

"Old money" applies to those of the upper class whose wealth separates them from lower social classes. According to anthropologist W. Lloyd Warner, the upper class in the United States during the 1930s was divided into the upper-upper and the lower-upper classes. The lower-upper were those that did not come from traditionally wealthy families. They earned their money from investments and business rather than inheritance. In contrast to the nouveau riche, the upper-upper class was families viewed as "quasi-aristocratic" and "high-society". These had been rich for generations.

During the early 20th century, the upper-upper class were seen as more prestigious. Despite purchasing rather expensive things, they had a sense of frugality and thrift, and resentment toward conspicuous consumption, as opposed to their impressions of the noveau riche.

"Old money" contrasts with the nouveau riche and parvenus. These fall under the category "new money" (those not from traditionally wealthy families). Some notable families with "old money" include:

• The Adams family: Descended from colonists and including two presidents, one mayor of Boston, the founder of Raytheon and The Boston Red Stockings, the Adamses have been powerful in America for centuries. Like most families descended from Boston colonial merchants, they have a tradition of attending Harvard College (also St. Mark's School).

• The Roosevelts also include two presidents and several other noteworthies. Like most old-money Manhattan families, they are of Dutch descent. They have a tradition of attending Groton and Harvard College.

• The Biddles are arguably the most well-known and powerful of the Proper Philadelphians. They have a tradition of attending Princeton.

• The Astor family made their fortune in the 18th century, through real estate, the hotel industry and other investments. Unlike most Manhatten old-money families, they are not of Dutch descent; their ancestors moved to Baltmore, Maryland England from Germany. Patriarch John Jacob Astor was the first multi-millionaire in the United States.

Although many "old money" individuals do not rank as high on the list of Forbes Top 400 richest Americans as they once did, their wealth continues to grow. Many families increased their holdings by investment strategies such as the pooling of resources

Effects of World War II

Economists assert that the largest transfer of wealth will be as the older generation leaves wealth to the baby boomers. Inheritance has been estimated to make up 6% of the US GDP each year. The current generation is wealthier than any generation before. This increase in wealth and inheritance indicates a rise of "old money" in American families. Stephen Haseler argues that America is becoming an inheritance culture in which much economic opportunity is from family inheritance and not personal achievement.

See also

• Aristocracy
• Nobility
• Gentry
• Landed gentry
• Patrician (post-Roman Europe)
• Grand Burgher (German Großbürger)
• Hanseaten (class)
• Social environment
• High culture
• Social status
• Parvenu
• Social environment
• Status–income disequilibrium
• Symbolic capital
• Mentifact
• La Distinction
• Rentier capitalism

Further reading

• Aldrich, Nelson W. (1996). Old Money: The Mythology of Wealth in America. New York: Allworth Press. ISBN 9781880559642.