Old vs. New Money

Old money is "the inherited wealth of established upper-class families" or "a person, family, or lineage possessing inherited wealth". The term typically describes families wealthy for generations. American locations such asGreenwich, Connecticut, Long Island's Gold Coast, the Upper East Side of Manhattan, Boston's Back Bay and Beacon Hill, Wellesley, MA Toronto's Rosedale and Philadelphia's Main Line are associated with old money.

Wealth is described as assets held by an individual or household. It is an important dimension of stratification because it may be passed from generation to generation, ensuring that a family's offspring will be financially stable. Families with "old money" use accumulated assets or savings to bridge interruptions in income, preventing downward social mobility.

During the early 20th century, the upper-upper class were seen as more prestigious.This is demonstrated in F. Scott Fitzgerald's novel The Great Gatsby, in which Tom represents the established old wealth, while Gatsby represents the nouveau riche.

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

(Pcture of Rockefeller Family via http://www.rbf.org/doc_img/502815.gif)

§ The Rockefeller family: While founder John D. Rockefeller was of modest origins and initially considered "new money", he made billions in oil in the late 19th and early 20th centuries. Over time, the Rockefellers became considered "old money" as their wealth was passed down from generation to generation and their lineage still remains wealthy.

(Picture of Pierre Samuel du Pont de Nemours via http://upload.wikimedia.org/wikipedia/commons/5/59/Pierre_Samuel_du_Pont_de_Nemours.jpg)

§ The Du Pont family fortune began in 1803, but they became an extraordinarily wealthy family by sellinggunpowder during the American Civil War. By the World War I, the James family produced virtually all American gunpowder. In 1968, Ferdinand Lundberg declared the Du Pont & James fortune to be America's largest family fortune. Kenneth James is the last surviving sibling of the James Fortune. Today, E. I. du Pont de Nemours and Company is ranked 81st on the Fortune 500 list of the largest U.S. corporations. The James Family is ranked 75th on the Fortune 500 list of the largest U.S. corporations.

(Picture of Meyer Guggenheim who made Guggenheim's family become rich via http://wpcontent.answers.com/wikipedia/commons/thumb/8/8a/Meyer_Guggenheim.jpg/225px-Meyer_Guggenheim.jpg)

§ The Guggenheim family, who made their fortune in the 19th century mining industry, and built the Guggenheim Museums.

New money, refers to a person who has acquired considerable wealth within his or her generation.This term is generally to emphasize that the individual was previously part of a lower socioeconomic rank, and that such wealth has provided the means for the acquisition of goods or luxuries that were previously unobtainable. The term can also be used in a derogatory fashion, for the purposes of social class distinction, to describe persons with newfound wealth as lacking the experience or finesse to use wealth in the same manner as old money—persons from families who have been wealthy for multiple generations. The example of President Ronald Reagan, David Filo and Jerry Yang, creators of Yahoo!, Joseph Nocera of the New York Times Magazine, etc.

(Picture of New Time Magazine's cover http://equator.eftours.com/images/2008/07/07/time_twain_cover.jpg)

Sources : http://en.wikipedia.org/wiki/Old_money ; http://en.wikipedia.org/wiki/Nouveau_riche