<p>Marite, do you happen to have a link to that article?</p>
<p>Marite, </p>
<p>Yes, I did miss it - was traveling last weekend and did not have internet access.</p>
<p>I think I mentioned (may have omitted) that Boston is changing in that regards, which upsets me. Certainly, Boston shopping is going more upscale, but it seems as if the attitudes which are slow to infiltrate the city have finally gotten a toehold. Let New York be about money and fashion; Boston used to be about something different. Even the Vineyard preppies took pride in wearing worn pants - a marker of having spent a lot of time in the sun and on a boat. Now, Nantucket is getting rid of the small homes and putting up McMansions. Shopping is all about the status things. (Note that Coach, the usual purveyor of fine leather goods, has started making purses for prostitutes. No longer will a Coach purse be fashionable years from now.) </p>
<p>I think the shoes are for the simple reason that rings can be hand-me-downs, could have been bought at a young age, and, regardless, are a one-time expenditure. Shoes need to be replaced frequently - and the frequency at which you replace them may be a better indicator of disposable income than anything else. Just not in Boston. :)</p>
<p>Make Way for Millionaires
Spending money is what they do, from $15 glasses of wine to $5,000 suits to $3 million condos. They’re loud and proud, and they’ve taken Boston from the Brahmins. Is this what it means to be a world-class city?</p>
<p>By Kris Frieswick | May 14, 2006</p>
<p>It’s Wednesday night at 28 Degrees, and every soft leather banquette in the place is taken. Outside on Appleton Street, valets sprint back and forth to keep up with the double-parked Jaguar sedans, Mercedes SUVs, and Bentley coupes. Weekends bring out the birthday-and-anniversary crowd, but Wednesdays at 28 are for locals: entrepreneurs, philanthropists, designers, developers, gay, straight, young, and old, bound together by a shared abundance of good looks, a general lack of body fat – and piles of money. Chloe blouses, Manolo Blahnik pumps, and Paul Smith stripes swirl as the staff delivers $15 glasses of wine and $30 steaks. The room is dimly lit, but it’s easy to see that it’s packed with the faces of the new rich. </p>
<p>You should expect to see a lot more of them in the future. Among the 1.4 million households in the Boston metropolitan area, nearly 52,000 had at least $1 million in assets in 2004, not including primary residences or 401(k) accounts – up 8 percent from the year before. Claritas, the San Diego-based research firm that counted all that money, predicts that the proportion of millionaires will jump by another 50 percent by 2009. In the next five years, households earning more than $150,000 annually will be the fastest growing income group in Suffolk, Norfolk, Essex, and Middlesex counties, according to estimates from Wisconsin-based Third Wave Research, just one of the many wealth- and trend-tracking firms that study this desirable demographic for the companies lining up to market goods and services to that target.</p>
<p>They’re a spendy lot, these new millionaires, choosing to wear their wealth in highly visible ways and eschewing the conservative style associated with those old-money trendsetters, the Boston Brahmins, whose idea of high fashion is dusting off granddad’s tuxedo (it’s still in a closet somewhere) or breaking out the family pearls. Boston’s wealthy are part of a spending frenzy that is sweeping the nation as a whole, but according to the 2005 Mendelsohn Affluent Survey, the rate at which Boston-area families with an annual income over $200,000 are consuming luxury goods – watches, fashion, furniture, and luggage – is increasing faster than the national average for the same income group. Take, for example, the new Vertu cellphones. Handmade in England of a superlight, NASA-tested metal alloy, the phones have rubies embedded under the keys and a button that connects directly to a concierge. Prices start at $4,900. Their popularity surprises even those who make a living selling high-priced baubles.</p>
<p><a href=“http://www.boston.com/business/personalfinance/articles/2006/05/14/make_way_for_millionaires/[/url]”>http://www.boston.com/business/personalfinance/articles/2006/05/14/make_way_for_millionaires/</a></p>
<p>Bill Gate’s house would cost about $100 Million today. He has other homes that are very grand. He may not be Paul Allen but he does OK.</p>
<p>Marite, thanks for the link. Great article. Nice history about a part of Boston’s social atmosphere.</p>
<p>Just remember–somebody makes a good living providing all those luxury goods from the waiter who can make $100k at a good restaurant to the skilled builders providing luxury kitchens and baths to their homes.</p>
<p>Ariesathena, we must’ve been brought up in the same family! I nearly fell over the other day when my son said that he really wanted a Hummer for his 16th bday! Ha!.. I told him not only wouldn’t he be getting a Hummer, he’d be getting NO car at all. They are an embarrassment. My parents drove their cars into the ground and kept them for at least 10 years. I remember going as a 20-something to an island off of Connecticut with a group of friends for the weekend. This island is super old money (with a few wannabes thrown in ) and the people there gave us the dirtiest looks as we drove around in a friend’s father’s Jaguar that he had borrowed. New money…</p>
<p>Dke:</p>
<p>He won’t be able to have a Hummer now, will he?<br>
I once was driven around London in a Bentley. It was supposed to be a really quiet car… but that did not take into account the innumerable honks it elicited. :(</p>
<p>dke,
My youngest wanted a Hummer for his 16th also. We got him one–found it at Toys R Us for about $12.00! He didn’t think the gift was near as funny as we did:).</p>
<p>Dke:</p>
<p>LOL! Sounds familiar. My dad (Zeus) called me up the morning of one of my finals with news: his Volvo had hit 300,000 miles. This was a much-anticipated event, but I do wish it had taken place at some time that wasn’t 6:30 am. 
</p>
<p>My “baby” ('91 Volvo) only has 180,000 miles on her odometer; however, we’re taking a road trip to the Midwest in a few weeks, so she’ll get to stretch her legs and see a few new states. Also, getting the miles up on the car allows me to hold up my head in my family - Zeus is Mr. 1/3 of a million with his cars. She runs - why not keep driving her? My extended family does not understand at all. </p>
<p>As for driving the cars into the ground - it was a big deal when Hera replaced the minivan that had about 130,000 miles on it. Only did it because repair costs were greater than the cost of the car itself. </p>
<p>My sister, for some unfathomable reason, buys nice cars. She tends to total them on a regular basis (one car every three years or so); we can’t understand why she just doesn’t buy a titanium-reinforced junker and drive that. Oh well.</p>
<p>Speaking of cars… I once had a friend make the analogy that buying a car was like taking a suitcase of money and burying it in the backyard. This was a very affluent couple (multiple homes, including a winery) who drove the most decrepit cars you can imagine. While we don’t go quite this far, we tend to keep our cars for at least ten years, up to the point where we practically have to pay someone to take them off our hands. We only ever have one “good” car, which I generally drive, since I’m the one who drives the kids. Even then, we shop for bargains. I just hate to spend money on things that depreciate!</p>
<p>I posted this earlier in the thread, but would like to repost it.</p>
<p>Read the book ‘The Millionaire Next Door’ by Thomas J. Stanley and William D. Danko. After you are done, give it to your kids</p>
<p>I am reposting it because it might give some insight into who are the truly wealthy. If you don’t have time to read the book, insert the words ‘millionaire next door book review’ into a search engine. Read some of the articles. In many cases, the true wealthy are not the ones wearing the expensive clothing, wearing the expensive watches, and driving the expensive cars. They are, many times, people who you would never guess are wealthy. Ironically, in the studies conducted by Stanley and Danko, the two vehicle models driven most often by millionaires are Ford F150 pick-ups and Ford Explorers. My point is, the truly wealthy do not have to flaunt it, their children do not have to flaunt it. So, in many cases, rich kids and not so rich kids can be friends and not even notice much of a difference. The families of the kids flaunting the expensive jeans and purses, may not even be rich at all, because they spend all their money. Wealth is determined by net worth, clothes and cars depreciate rapidly and end up having little or no net worth after a period of time.</p>
<p>I had a bit of a shizophrenic upbringing, because my parents were rich but cheap. Literally my mother would save 10 peas from the bottom of the bowl. We had good trips, good doctors, & no worries-- but old cars, a small house, NO fashioney stuff. I knew I could attend the college of my choice without $ being a concern, yet I had to buy my own clothes starting in 7th grade. Therefore I always worked for pay (age 12 on) and was very thrifty. </p>
<p>In college, the stratospheric wealth of some of my classmates was surprising, but not really intimidating because I had had the Hawaiian vacations, etc, to some extent too-- though unlike them I did work for my own spending money and did have to budget.</p>
<p>I remember some lean times when I lived on rice & chicken liver my senior year due to a fight with my dad and too much pride to accept $. I think it’s good to know how to eat for $5 a week if you have to.</p>
<p>As much as I resented my parents’ money policy as kid I think it made for a good balance for me. I had the wonderful things-- education, travel-- and learned to care less about the “stuff.” I also learned how to work for what I really wanted.</p>
<p>We are doing the same with our kids. They are expected to work for their own spending $ from the age they can finagle a babysitting job. No allowance in this house. However, I am much more flexible about providing the key ‘cool’ item here or there… since I remember how much it means for a kid to have the certain cool shoes or whatever. </p>
<p>My D has spent VERY little money this year… maybe $50- $100 a month, all from her $ saved since age 12. A lot of that has gone to more meal credits! At her LAC, as has been mentioned before, there is not much to do outside of a dinner out, a movie, or (probably, let’s face it) buying booze. There are many wealthy kids though.</p>
<p>I think like idad, they are conscious of one another’s financial situations and I gather they do not suggest doing high-ticket things very often. For her birthday I told her to use her “emergency” credit card and take a whole bunch of friends out to dinner, on me. She said thanks, this way she could invite some kids who might not do this if they were to have to pay.</p>
<p>
What a thoughtful idea! I love to hear things like this, because it truly celebrates a special occasion, and isn’t just about “stuff”.</p>
<p>For what it’s worth, having grown up in a family with very limited financial resources, I think I learned a great deal about how to find creative solutions to problems. Throwing money at a problem was never an option, so I learned to use what resources I had – the library especially. The ability to sew, cook, paint, wallpaper, do one’s own repairs on a car or home are terrific skills to have, even if you can afford to pay someone else for everything.</p>
<p>I was raised in a community where everyone was of a similar income level as my family. We were probably lower middle class. Most of the families had blue collar working fathers and few had a college education. But we had all that we needed and most things that we wanted. But we didn’t want much since our exposure wasn’t there. I was one of the few of my classmates who left the area and went to college. Many married by 20.
My spouse on the other hand was fairly wealthy. But his family was like SBMom’s in that they spent their money on travel, and educational opportunities and building futures for their children. Which are also what we have done.
My children are living a very different life then I grew up with. Our community has mixed demographics but my kids are exposed to kids who have everything they could possibly want. From 200 dollar jeans to their own ponies. We have always given our children what they need and some extras. But they don’t have the things that many of their classmates do. We have raised them to understand that just because you can afford to buy something doesn’t mean you should.
We have always been happy to pay for education. And we have given them opportunities to see other parts of the world. We won’t buy them designer sunglasses or a BMW. They understand but at times feel jealous. Both my females have at times wished that they could have “things”. My youngest would love a horse and all that comes with it. We give her lessons, and the bare basics. She does get frustrated when the kids she rides with get new saddles, and their own pony and get to go to the horse shows without a thought.
When my D went off to college we were able to let her pick a school not based on price. But she took her own spending money from her job. Whereas her roommate had a 600 month allowance. Did my D grumble at times yeah but she also knew her roommate was spoiled.
We hope that our kids learn that money should be used for good. Charity, Education and building for the future. Not something that you wear and them dispose of.
SBMom- I find that the consumer consumption of the youth in our community to be out of control. As much as I love our community I wonder at times if the rest of the US is like here?</p>
<p>sjmom2329, I totally agree. I had a pretty comfortable childhood, but my means have become much more modest since. As a result, I’ve become much more self-sufficient and resourceful. I’m comfortable around a variety of people, and try to make sure they’re comfortable around me. Also, I’ve gone from being mac and cheese challenged to making some killer quesodillas. It’s a start.</p>
<p>Also, I thought about this some more, and from my general experience it’s easier for “poor” kids to be friends with “rich” ones than the other way around. I live in New Haven, which is a particularly stratified city. (There’s actually a great article about it here <a href=“US in denial as poverty rises | World news | The Guardian”>US in denial as poverty rises | World news | The Guardian)</p>
<p>I’m frequently (and inaccurately) clocked in by many as a “rich Yalie”, which has a lot of negative connotations. I’m then forced to spend the first 5 minutes of such interactions explaining that I’m actually on scholarship at the local state university so that I can be treated with a smidgen of respect. I have yet to experience such class-based hostility from my better-off peers.</p>
<p>Money–you can’t take it with you. Outside of paying toward college I think children should get as little as possible and make it on their own. Generally the most messed up kids are the over indulged children of the rich.
I believe on spending on what you enjoy. For some of us it is homes, others cars, antiques, etc. Just do it because it is what you really get some real satisfaction. Donations also fit under this kind of spending.</p>
<p>“I find that the consumer consumption of the youth in our community to be out of control. As much as I love our community I wonder at times if the rest of the US is like here?”</p>
<p>Two-thirds of Americans have family incomes under $65k. And that includes people living in high-cost areas such as San Francisco and Boston. Most of their kids are not attending prestige colleges. A significant portion of them can’t afford community college.</p>
<p>If you don’t know someone for whom the only affordable option is the community college, or who can’t afford to send their kids to community college, you are indeed out of touch.</p>
<p>I’ve had such an eye-opening year economically. Back where I live in the US, poorer families live in poorer towns; here, everything is mixed together so that my city has very clear social levels within it, which really changes the way I see certain social situations. </p>
<p>I have friends here who are filthy rich and poor, so I find myself on both sides of the wealth divide. I have friends who rinse and reuse disposable plastic cups multiple times–in fact they have been rewashed so many times that they’re showing the wear and I’m all for chucking them. I would really like to donate a stack of plastic non-disposable cups to my chorus so that we can throw away the plastic disposable ones we have been using for tea for months (yes, months), but I don’t know whether it would be offensive at all to do so in a ‘your cups aren’t good enough for me’ kind of way. </p>
<p>Back in the US, I’m the one who feels like I’m on the lower end of things with some of my friends, trying to spend as little as possible when we go places and things like that. Here I’ve realized how lucky I really am, cliche as that sounds, and my perspective on displays of wealth has changed drastically. It’s so hard to explain, but I guess the bottom line is that I’m more aware of my money and the value of things–and whether ‘things’ are necessary or not. I was frugal before I came, so that’s not what I’m talking about; I guess it has to do with what mini said about knowing or not knowing people who can’t afford community college. I guess I just have a better idea of what’s really necessary and important. Knowing what I know now…I think I’ll have a much easier time dealing with economic differences with my friends when I’m in college; it just doesn’t seem like that big of a deal.</p>