Old money. The term evokes images of grand estates, art collections passed down through generations, and family names synonymous with wealth and prestige. But beyond the outward symbols of wealth lies a deeper, more enduring philosophy—a way of managing money, lifestyle, and reputation that has allowed certain families to maintain and grow their wealth across centuries. These old money principles are not about flaunting riches but about cultivating values, habits, and long-term strategies that ensure financial stability and growth for future generations.
In this article, we’ll explore the key principles that define the old money mindset, and how they can apply to your personal financial journey. Whether you’re working toward your first savings milestone or planning for generational wealth, adopting these time-tested principles can help create a more sustainable, prosperous financial future.
1. Frugality Over Flashiness
One of the most surprising aspects of old money is that these families often live below their means. Despite vast wealth, they’re not the ones purchasing the flashiest cars, biggest mansions, or most expensive clothes. Instead, they embrace frugality—choosing quality over quantity and valuing the intrinsic worth of items over their price tags.
Example: The Rockefeller family, one of the most iconic old money families in the U.S., is known for their disciplined approach to spending. Generations of Rockefellers have lived modestly compared to their wealth, investing their money instead of spending it frivolously. David Rockefeller, the former CEO of Chase Manhattan Bank, famously drove the same car for decades and avoided the excesses often associated with wealth.
This approach can be summed up by the old adage: “Live like no one else now, so later you can live like no one else.” Frugality ensures that wealth is not squandered but is instead available for future investment and growth.
How You Can Apply This Principle:
- Live below your means. Just because you can afford something doesn’t mean you need to buy it.
- Invest in quality, not trends. Old money families buy items that last—timeless pieces of furniture, classic clothing, and homes built to endure generations.
- Avoid debt for lifestyle choices. If you’re using debt to fund a flashy lifestyle, you’re likely living beyond your means.
2. Long-Term Thinking
Old money operates with a multi-generational mindset. Rather than seeking immediate gratification, these families prioritize investments and decisions that will pay off over the long haul. They understand that true wealth is built slowly and incrementally, not through get-rich-quick schemes or risky ventures.
Example: The Rothschild family, a European banking dynasty, is renowned for their long-term investment strategies. Over the centuries, they have carefully diversified their wealth across various industries, from banking to wine, always focusing on steady, sustainable growth.
This long-term perspective is also seen in the way old money families approach education, relationships, and business ventures. They think in terms of decades, not months or years.
How You Can Apply This Principle:
- Invest with patience. Avoid the temptation to chase short-term gains in volatile markets. Build a diversified portfolio and let it grow over time.
- Think generationally. Make decisions that benefit not just your current financial situation but your family’s long-term future.
- Prioritize long-term assets. Real estate, blue-chip stocks, and even personal relationships can yield significant dividends when nurtured over time.
3. Privacy and Discretion
Old money values privacy. You’ll rarely find old money families flaunting their wealth on social media or seeking attention in the press. Instead, they cultivate a quiet confidence, understanding that true wealth doesn’t need to be broadcasted.
This principle of discretion is closely tied to the concept of stealth wealth, a lifestyle choice where individuals deliberately avoid displaying their affluence. It’s about blending in, rather than standing out.
Example: Jacqueline Kennedy Onassis, a member of the wealthy Bouvier family and widow of President John F. Kennedy, epitomized discretion. Despite being one of the most famous women in the world, she avoided ostentation. Her style was understated, elegant, and timeless, and she guarded her privacy fiercely.
How You Can Apply This Principle:
- Maintain financial privacy. Keep your financial wins and losses private. There’s no need to broadcast your earnings or spending habits to others.
- Avoid conspicuous consumption. You don’t need to show off your wealth through material items. Focus on building wealth quietly and securely.
- Value your personal security. The less attention you draw to your financial situation, the more secure you’ll be against potential risks, including fraud and theft.
4. Education and Self-Improvement
Old money families prioritize education—not just formal schooling but lifelong learning. They understand that wealth requires management, and they invest time and money into developing the skills necessary to handle their assets wisely. This focus on self-improvement also extends to culture, art, and global awareness, ensuring that they remain well-rounded, knowledgeable individuals.
Example: The Vanderbilt family, while known for their enormous wealth, also emphasized education. Cornelius Vanderbilt, who built the family fortune through railroads and shipping, invested in higher education by founding Vanderbilt University. His descendants continued this tradition, often attending Ivy League schools and promoting educational philanthropy.
How You Can Apply This Principle:
- Invest in your education. Whether it’s formal schooling or self-directed learning, make sure you’re continually improving your knowledge and skills, especially in financial literacy.
- Pass on knowledge to future generations. Teach your children about money management, investing, and the importance of education from an early age.
- Diversify your learning. Explore different subjects, cultures, and areas of expertise. A well-rounded individual is better equipped to manage wealth in an increasingly globalized world.
5. Philanthropy and Giving Back
Old money families often engage in philanthropy, not just because they have the means, but because they believe it is their duty. Many old money families subscribe to the philosophy that with great wealth comes great responsibility. They invest in causes that align with their values, whether it’s education, the arts, or social justice.
Philanthropy is not just about writing checks—it’s about actively engaging with the community, understanding the needs of others, and contributing time, expertise, and resources to make a difference.
Example: The Carnegie family, whose wealth came from the steel industry, is well-known for its philanthropic efforts. Andrew Carnegie famously stated that “the man who dies rich, dies disgraced.” He donated over 90% of his wealth during his lifetime, building libraries, supporting education, and funding numerous charitable causes. The legacy of his giving continues today through the Carnegie Foundation.
How You Can Apply This Principle:
- Give according to your means. You don’t need to be wealthy to give back. Donate time, expertise, or money to causes that matter to you.
- Make philanthropy a family value. Teach your children about the importance of giving back and involve them in charitable activities.
- Invest in your community. Support local businesses, arts, and initiatives that benefit your neighborhood or city.
6. Stewardship of Wealth
Old money families see themselves as stewards of wealth, not just its owners. This means they take a long-term view of their resources and feel responsible for preserving and growing their assets for future generations. Stewardship goes beyond simply managing investments—it’s about fostering the family legacy, maintaining family businesses, and ensuring that wealth is passed down with care and responsibility.
Example: The Phipps family, descendants of Henry Phipps, a partner of Andrew Carnegie, exemplify stewardship. The Phipps family wealth, generated in the steel industry, has been carefully managed and diversified across real estate, philanthropy, and business ventures. Today, multiple generations of the family are involved in managing the Phipps family office, ensuring that their wealth continues to grow and serve future descendants.
How You Can Apply This Principle:
- Take responsibility for your wealth. Whether you have a small amount of savings or a large inheritance, manage your money with care and a sense of duty to your future self and family.
- Create a long-term financial plan. Think beyond your immediate financial goals and plan for the long-term health of your assets.
- Teach financial stewardship. Encourage your children to understand and respect the value of money, so they too can act as responsible stewards of wealth.
7. Building a Strong Family Legacy
Old money families understand that their wealth is only as strong as the family unit. They invest time in fostering strong family bonds, teaching values, and ensuring that the family remains united across generations. A cohesive family is more likely to preserve and grow wealth than one fractured by disagreements and mismanagement.
Example: The du Pont family, one of the wealthiest in the U.S., has maintained their wealth for over 200 years, largely due to their emphasis on family unity and legacy. The du Ponts have numerous family meetings, councils, and gatherings to ensure that the family stays connected and aligned with their shared goals and values.
How You Can Apply This Principle:
- Foster communication. Open lines of communication within the family about finances, values, and the family’s long-term goals.
- Create shared goals. Establish family goals that everyone can work toward, whether it’s building a family business, investing in real estate, or supporting philanthropic causes.
- Encourage family participation. Get younger family members involved early in managing wealth and understanding the family’s financial strategies.
Conclusion
Old money principles offer timeless lessons in how to manage wealth with care, responsibility, and foresight. Whether you’re looking to build financial security for yourself or create a lasting legacy for future generations, these principles can guide you toward a more sustainable financial future.
At the core of old money principles are values like frugality, long-term thinking, privacy, education, philanthropy, stewardship, and strong family bonds. These families understand that wealth is not simply measured by bank accounts or material possessions but by the impact it has over generations. By approaching money with a sense of responsibility and purpose, they create a lasting legacy that extends beyond their own lifetimes.
You don’t need to be born into wealth to adopt these principles. Regardless of your current financial situation, practicing frugality, focusing on education, thinking long-term, and giving back to your community can all help build a foundation for financial success. The old money mindset is about more than just accumulating wealth—it’s about using it wisely, preserving it for the future, and creating a positive impact for both your family and society.
So, as you move forward in your personal finance journey, consider how these principles can guide you. Building wealth takes time, patience, and discipline, but with the right approach, you can create financial stability not only for yourself but for generations to come.