What is new money?
New money has several meanings. It may refer to wealth that was not inherited – the ‘rags-to-riches’ of self-made people. The term nouveau riche also means new money in this sense, but tends to include the notion that the person or family had previously been poor and lacks the worldly experience, refined taste and value of old money.
New money, which is the opposite of ‘old money’, may describe successful entrepreneurs, shrewd investors, entertainers, actors, and famous sports people.
New money may refer to the money or the self-made people themselves, as in “The Smiths are new money, rather than the socially more elite old money.”
In the 18th and 19th centuries, new money came almost exclusively from successful businesses and investments. Since then, the opportunities have widened considerably.
According to Cambridge Dictionaries Online, new money has two meanings:
“Money that is available to be used for the first time,” or “money owned by rich people who have not always been rich, or the people themselves.”
QFinance says new money means financing provided by a new issue of stock (shares), or the transfer of funds from one account into another.
Private banking providers say it is much more difficult to build long-term relationships with self-made millionaires, compared to their ‘old money’ customers, who have been brought up to think several decades ahead.
Money that is available to be used for the first time may also be called new money, as in: “The Federal Reserve System has created unprecedented amounts of new money.”
A rags-to-riches story – Sheldon Adelson
Sheldon Aldelson, the son of a Boston cabdriver (father) and knitting shop manager (mother), was born in a poor neighborhood of Boston, Massachusetts, in 1933.
At the age of 12 he borrowed $200 dollars and started selling newspapers. He later worked as a mortgage broker, financial consultant and investment adviser.
He dropped out of high school and studied voice as a teenager.
After being discharged from the army he set up a toiletry kits business, and then established another called De-Ice-It, which sold a spray to clear frozen windshields.
In the 1960s he started a charter tours business and soon became a millionaire, However, in his thirties he lost his fortune twice.
It was in trade shows and casinos in Las Vegas and other countries that Adelson made his massive fortune.
According to Forbes, by 2007 Adelson had a net worth of $26.5 billion.