Old money vs new money. You surely heard people talk about this comparison before and may be wondering: What is it about this rivalry and should I even care? To settle this old money vs new money debate, we will look at key differences and similarities of the two styles of living in the course of this article.
As a general rule, new money are typically self made wealthy people whereas old money families typically hold inherited wealth passed over multiple generations. This also reflects in their spending habits as well as free time activities and their general appearance.
You may argue a lot about frivolous spending vs silent wealth. So, let’s jump into a deep comparison of both aesthetics to get a better understanding of what to expect from these stereotypes.
Definition
First, we will have to define both ways of living to gain a understanding of what to expect.
Old money
Starting with old money, we will look at a definition from my article: What is old money?
Old money refers by definition to money that has been inherited over several generations. It is usually used to describe family money that has been passed for a long time. Due to their financial planning, old money families tend to invest in long-living assets and safe options.
These upper-class families are usually the offspring of well-known aristocrats of the 19th and 20th centuries, sometimes even further in the past.
New money
New money, also called nouveau riche. It is defined as wealth that has been accumulated recently and has not been inherited. This rags to riches story tells about about people from poor to middle class families that managed to gain lots of wealth.
They tend to have lavish lifestyles with flashy cars and other things showing their social standing.
New money families usually don’t have a long aristocratic history. These self-made millionaires and -billionaires made their newfound wealth mostly by working in high-paying professions or owning a company.
Differences between old money vs new money
With the definitions being way different, you can guess there are some major differences between old money and new money.
Traditions and values
Old money: old money is all about traditions. As wealth has been inherited throughout many generations and these previous generations must be praised and respected. Family is a very strong concept and quite literally the foundation of old money. Also, old money lives rather discreetly with nothing damaging their reputation
They traditionally have- and will always be within their group and stick together when it comes to important things. Due to other old money families also possessing generational wealth, they tend to trust each other a lot.
Many old money families like to be exclusively and reserved, trying to not bring any unwanted attention to themselves. It raises its children to have good etiquette and in general to be well-behaved. Also, traditional education is a must-have for old money people.
Therefore, they create old money clubs and communities, which you can read more about here.
New money: New money on the other hand is not as keen about their children attending prestigious schools and colleges. Not being part of the early industrialists makes them not as connected to traditional educations anyways.
Since there is no bright and wealthy history, typically not many traditions are important to new money, unless there are some personal ones. Also, new money tends to live life at a fast pace.
These people are always in a rush as they got so many things to do. Nevertheless, new money likes to show they are part of the high society.
Spending habits
Which brings us directly on how old money individuals spend money compared to new money examples.
Old money spending habits
Old money prefers quality over quantity. No flashy logos and big brand names as well as collaborations to generate hype. The quality of the fabric and the tailoring should be the main part of the price and not the big name you will recognize.
This quality, may it be in clothing or anything else, will last for a long time, making it a great investment. Another thing is cars. The vehicles driven by old money are usually a bit more mature yet long-lasting and elegant.
If you want to read more about old money cars, try my article about the best old money cars.
The houses these people live in are usually big and from former centuries. These old money houses are not only a great investment but also a symbol of status.
New money spending habits
On the contrary, individuals with new money typically lack the opulent estates of those with old money. It doesn’t even feel the need to always buy a house but likes to rent apartments to be independent and travel to any destination it wants.
Unlike an old money family, new money also likes to wear flashy outfits with big logos and unique pieces to stand out. It also likes to brag sometimes and spend a little more money than necessary in a club or when it comes to buying the latest Ferrari. Since you earned it, you can spend it as you like to, I guess.
Investing
Old money has done it for generations, new money will hopefully do it later on. Investing. Old money understands the importance of having multiple assets and being invested in the long term. Also, real estate is a big factor of these wealthy families too.
With significantly lower prices in the 20th century compared to today, old money individuals purchased numerous quantities. As we don’t even know how many generations have surpassed this wealth, it is difficult to tell sometimes how long old money families possessed these estates for.
New money on the other hand wasn’t taught about investing wisely since there was no fortune to invest. Investing can be a little difficult to understand and so there can occur major losses and false strategies.
Sources of income
Old money: One of the greatest assets is real estate. Since old money typically owns it, real estate earns them lots of possessions and always will. Besides real estate, other old money investments are generating a lot of wealth.
Shares are typically a big asset and in general participation in companies. Most of the time old money even owns a company themselves. Lots of old money families own companies, like the Hiltons, the Ford Family or even the rockefellers.
New money: new money usually generates its wealth from other assets. They may own a company or be a part of the management and earn a pretty high income along with some shares or cryptocurrencies. One prominent example is Bill gates.
Assets with enduring value, such as real estate, are often absent from the portfolios of the new money crowd. Nevertheless, old money and new money families do still possess lots of money no matter their sources.
Old money vs new money free time activities
As you might guess, there are major differences regarding free time activities between new money and old money examples.
Whilst old money likes to keep most activities private and reserved, new money opts for an outgoing experience. Therefore, it might drive nice cars with colorful paints and is not concerned about privacy. Old money likes to keep the circle small and will host private meetings or dinner parties with their beloved friends and family in full privacy in club-houses or at home.
Conversely, individuals with new money often seek extensive social connections. They will frequently attend parties and dine at various upscale restaurants to gain a comprehensive social experience.
In some activities, they are the same though. Exclusive traveling or racing is something old and new money enjoy.
Old money style of clothing vs new money style of clothing
When it comes to style, we’ve already discussed some of it in their spending habits. But there is definitely more to that.
Old money style of clothing
As we’ve briefly discussed, the old money style is about quality. Shiny logos and hyped brands aren’t impressive, especially if they are poorly crafted. Therefore, certain brands can be taken into consideration.
These old money brands, like Polo Ralph Lauren or Tommy Hilfiger, offer high-quality, simple but suitable designs at a fair price. With this high quality, you don’t need to buy many pieces of clothing since they can last you a century.
If you want to get a deeper look into old money brands, check out my article about old money designer and affordable brands.
Choosing the right colors is also an important factor when it comes to this certain style as well as the right pieces. White and Beige are typical colors, you can find in the old money style.
Preferred pieces of clothing for women are:
- Blouses
- Blazers
- Polo shirts
- Riding boots
- Knit sweaters
For men:
- Sweaters
- Linen shirts
- Polo shirts
- Chinos
- Cable knit sweaters
A combination of these clothes will result in great old money outfits. Try not to overdo it though and keep it simple!
New money style of clothing
New money on the other hand likes to be more experimenting with colors and brands. Shiny logos and wild patterns are pretty common and brands like Gucci, Louis Vuitton, or collaborations are a thing. Also buying the lates trends is a rather common thing and a noticeable difference.
New money likes to be outstanding with colors. Bright colors and neon are commonly seen. Especially younger generations will be experimentive with unique patterns and fabrics too.
There are no real new money clothes as they don’t typically wear some things more often than others. Just combine matching things of all kinds and you may achieve this new money aesthetic.
Major differences
Now that we’ve seen some differences, let’s discuss the major ones between old money and new money briefly.
Inherited wealth vs new money
The most commonly mentioned difference is inherited family’s wealth vs new money.
Traditions vs fast lifestyle
Even in this time, old money today likes to live slow following the principle: Dolce Vita. New money loves a fast-paced way of living though.
Classical education vs self-education
Old money loves to send its offspring to prestigious Ivy League colleges and well-known schools. New money doesn’t care as much and praises self-education instead.
Buying essentials vs spending money for fun
As you might have guessed, old money’s spending habits revolve around essential items whereas new money likes to spend theirs on all kinds of things.
Long-living investments vs new to investing
Old money families possess multiple assets of long-living investments whereas new money tends to not have them. Also, new money loves risk and may try trending investment methods.
Private vs outgoing
Regarding their free time, both aesthetics tend to have rather different lifestyles. One loves to go out and socialise. The other likes to keep everything within its circle. Guess which one is who!
Conservative vs experimental style
Old money habits reflect in their style of clothing: Conservative but elegant. New money on the other hand likes its clothes with big brand logos and flashy colors.
Final thoughts on old money vs new money
As we’ve briefly discussed there are some major differences between old money and new money. These differences are mostly a result of their different past and traditions.
Though the two have some differences, both have one thing in common: Lots of wealth. Old money and new money are part of the wealthiest people in the world and no matter how they became rich, both live great lives and are to me very inspiring.
Generally, the discussion “old money vs new money” is a little blown-up and both just live their life without much of a rivalry.