The "old money" trend has emerged as a significant force, captivating the attention of Gen Z. It has sparked a deep curiosity about the distinct characteristics that set old money apart from new money. In this article, we will explore these differences and their impact on wealth creation and management.

Uncover the Secrets of Old Money vs. New Money

Generational vs. Self-Made Wealth

FFT Founder and CEO Keith Bloomfield joins Wealth! Host Brad Smith to discuss the disparities between generational and self-made wealth. Old money, often passed through trusts, focuses on preserving assets across generations. This approach ensures the longevity and stability of wealth. On the other hand, new money wealth creators frequently invest in alternative assets such as private equity, hedge funds, and real estate. These investments aim to accelerate the growth of capital and achieve financial success.For example, a family with old money may have a long history of wealth management through trust structures. They prioritize the preservation of assets for future generations, instilling a sense of responsibility and stability. In contrast, a self-made millionaire might invest in high-risk, high-reward alternative assets to build their fortune quickly. This shows the different strategies employed by generational and self-made wealth.

The Impact of Social Media on Money Making

Social media has brought about a fundamental change in the way people make money today. It has democratized information, allowing individuals to access a wealth of knowledge and opportunities. With just a few clicks, people can learn about different investment strategies, financial markets, and wealth management techniques.However, social media also presents challenges. The abundance of information can be overwhelming, and it is crucial to distinguish between reliable sources and misinformation. Wealth creators need to be vigilant and use social media as a tool to enhance their knowledge rather than relying solely on it.For instance, many successful entrepreneurs use social media to connect with like-minded individuals, share their experiences, and gain valuable insights. They leverage social platforms to build their brand and attract investors. On the other hand, some individuals may fall victim to get-rich-quick schemes promoted on social media, leading to financial losses.

The Importance of Educating the Next Generation

Families understand the significance of educating the next generation about wealth management. As Bloomfield explained, if you have a multi-billion dollar family, there is a great responsibility that comes with that wealth. It is essential to teach the next generation how to manage and use wealth properly, while also doing good with it.This involves instilling values such as financial responsibility, long-term thinking, and social consciousness. By educating the next generation, families can ensure the continued growth and preservation of their wealth.For example, some wealthy families establish educational foundations or scholarships to provide financial support to young people. This not only helps them pursue their educational goals but also instills a sense of responsibility and giving back.To watch more expert insights and analysis on the latest market action, check out more Wealth here.