Growing up in the DC Wealth Bubble

[Anonymous]

Anonymous wrote:

Anonymous wrote:I realize that I grew up in a very privileged life in the DC area. Everyone I know when to the local privates or the highly ranked publics. Everyone went to college at least or has multiple degrees. Everyone has at least 400k in savings and a 200k job by the time they're thirty. Everyone has a lavish wedding. Everyone buys property in desirable zip codes. Everyone is a parent by early thirties. Everyone takes at least 2-3 international trips every year. Everyone has a parent or two who are wealthy and successful.

It is only recently that I realized this isn't...normal and its hard to grasp. How can someone who grew up like this realize what life is like for others who aren't like them?

I don't think its accurate to call the $400K in the bank "savings" - its probably more accurate to call it a trust fund.

..or they work and make a lot of money. I had way more than 400k by 30 and didn't inherit a dime

[Anonymous]

Anonymous wrote:I grew up in this area, had a very nice and privileged but not wealthy life, and I have no idea what you are talking about. Yes, most people I know are fairly successful compared to the rest of this country, but not at all at the same level as you’ve indicated. I went to good but not the “best” FCPS schools and a VA state university, so that’s my frame of reference.

If you don’t realize that even in a “privileged” area there are a wide range of experiences, then clearly your expensive education and upbringing did little to prepare you for the real world and that’s a shame.

+1, though I went to a private school in this area. You definitely grew up in a bubble, OP.

[Anonymous]

Anonymous wrote:Move to an area where most parents send their kids to public school in a mixed income neighborhood.

Seriously - and it's not even difficult. We live in a desirable neighborhood and our local elementary school is super diverse (>50% white, 26% free and reduced lunch, 26% English learners).

[Anonymous]

Anonymous wrote:I find it weird that the OP says all of their friends have at least 400k in savings by age 30. Do your friends tell you their net worth? I find it bizarre that anyone would talk about this. I went to one of the the fanciest and wealthiest colleges and I have never, ever heard anyone talk about how much money they have. It's extremely rare for anyone to even talk about their salary. Are my friends and I the exception? It's kind of obvious when people have a certain level of wealth (or at least spending), but no one ever talks about numbers.

I'm a millennial and it's very common to discuss salary. However, I've never discussed my net worth or how much I have in investments.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I find it weird that the OP says all of their friends have at least 400k in savings by age 30. Do your friends tell you their net worth? I find it bizarre that anyone would talk about this. I went to one of the the fanciest and wealthiest colleges and I have never, ever heard anyone talk about how much money they have. It's extremely rare for anyone to even talk about their salary. Are my friends and I the exception? It's kind of obvious when people have a certain level of wealth (or at least spending), but no one ever talks about numbers.

Recent college grad Gen Z and young millennials seem to talk about money a lot IME. With a lot of details: retirement account balances, investments. financial plan etc. I think all the personal finance tiktoks (and for the older folks, blogs) that have changed the culture around this for this age group.

This. Gen Z is very very different. There are entire Facebook groups and blogs and online communities where people document getting to 100k in networth.

People are even sharing their journeys in entrepreneurships. Documenting their high and lows when it comes to making profit.
Baby boomers and Gen X are so out of touch.

[Anonymous]

Anonymous wrote:Cool story, OP! Tell it for us again!

+1

It’s not privilege that is the problem with OP. It’s ignorance.
A drive outside the area, an international trip with a drive through poor areas, even tv and movies show you different economic lifestyles.
A friend in college who had financial aid or worked in the cafeteria? You saw none of that?

Did you really not watch tv or drive outside your neighborhood?

The post seems unbelievable.

And for reference, we have a net worth of about $15 million with more on the way and we don’t take 2-3 international trips a year. One at best or two in some years counting the Caribbean. My kids are serious students and athletes. They don’t have time for so many trips. And yes they did some private elementary and now are in public high school because diversity is important.

[Anonymous]

I actually think the DMV is more of a middle class bubble than anything. I grew up in a flyover city and people are WAY more materialistic and spend a lot more. They live in much nicer houses, drive luxury cars and spend a lot more on vacations and the like. In dc, so many people with good incomes are living in ugly houses with ikea furniture. It seems way more middle class here. A decade ago I was living in a DC starter home whereas my friends from growing up were installing 100k kitchens.

[Anonymous]

Anonymous wrote:I actually think the DMV is more of a middle class bubble than anything. I grew up in a flyover city and people are WAY more materialistic and spend a lot more. They live in much nicer houses, drive luxury cars and spend a lot more on vacations and the like. In dc, so many people with good incomes are living in ugly houses with ikea furniture. It seems way more middle class here. A decade ago I was living in a DC starter home whereas my friends from growing up were installing 100k kitchens.

lol

I think you mean we are smarter with our money...

[Anonymous]

Anonymous wrote:

Anonymous wrote:I actually think the DMV is more of a middle class bubble than anything. I grew up in a flyover city and people are WAY more materialistic and spend a lot more. They live in much nicer houses, drive luxury cars and spend a lot more on vacations and the like. In dc, so many people with good incomes are living in ugly houses with ikea furniture. It seems way more middle class here. A decade ago I was living in a DC starter home whereas my friends from growing up were installing 100k kitchens.

lol

I think you mean we are smarter with our money...

I’m not so sure about that. Not only do a lot of my friends in flyover country spend a lot, but they save a lot. They have higher earning jobs and way lower housing and childcare costs. Financially they are much better off and also have a higher quality of life.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I actually think the DMV is more of a middle class bubble than anything. I grew up in a flyover city and people are WAY more materialistic and spend a lot more. They live in much nicer houses, drive luxury cars and spend a lot more on vacations and the like. In dc, so many people with good incomes are living in ugly houses with ikea furniture. It seems way more middle class here. A decade ago I was living in a DC starter home whereas my friends from growing up were installing 100k kitchens.

lol

I think you mean we are smarter with our money...

I’m not so sure about that. Not only do a lot of my friends in flyover country spend a lot, but they save a lot. They have higher earning jobs and way lower housing and childcare costs. Financially they are much better off and also have a higher quality of life.

As a whole, DC (and the close in suburbs) is very subtle with it's wealth. I manage hundreds of millions in client assets and most are very modest. They live in top areas but in very reasonable homes. I have one client worth 50M + and still lives in the same home they bought 35 years ago in Bethesda. Drive VWs and Toyotas. Most of my clients in the 10 - 20M range have 1-3M homes that are well maintained but not ostentatious. They spend their money on family, travel, education and investments/business ventures.

I also have clients all over the country and those in the Midwest, South, Texas, etc, tend to think they make way more than they actually do. They spend way more on luxuries, fancy hotels, cars, etc. While they still save, they don't view money the same way. They could make 250 - 400k and think they are so rich. Whereas my clients in the DC or NY area could make 1 - 5M and still say "we aren't rich."

Part of it is, there is so much money here, that people compare themselves to everyone else. For example, one could live in a 3M house in Wesley Heights and their neighbor's 14M house makes them feel "average."

[Anonymous]

I grew up on a farm in the Appalachian Mountains. Country people can survive when the going gets tough, OP. Sell your house and move to a shack back in the mountains. You'll figure it out.

[Anonymous]

50 something who grew up inside DC. The wealth bubble here is like the wealth bubble in every other city I know. Rich people are rich. If they are rich enough, their kids will be rich too. My wife grew up in NY - same thing. Our friends who grew up in LA - same thing. Nothing different about DC.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I actually think the DMV is more of a middle class bubble than anything. I grew up in a flyover city and people are WAY more materialistic and spend a lot more. They live in much nicer houses, drive luxury cars and spend a lot more on vacations and the like. In dc, so many people with good incomes are living in ugly houses with ikea furniture. It seems way more middle class here. A decade ago I was living in a DC starter home whereas my friends from growing up were installing 100k kitchens.

lol

I think you mean we are smarter with our money...

I’m not so sure about that. Not only do a lot of my friends in flyover country spend a lot, but they save a lot. They have higher earning jobs and way lower housing and childcare costs. Financially they are much better off and also have a higher quality of life.

As a whole, DC (and the close in suburbs) is very subtle with it's wealth. I manage hundreds of millions in client assets and most are very modest. They live in top areas but in very reasonable homes. I have one client worth 50M + and still lives in the same home they bought 35 years ago in Bethesda. Drive VWs and Toyotas. Most of my clients in the 10 - 20M range have 1-3M homes that are well maintained but not ostentatious. They spend their money on family, travel, education and investments/business ventures.

I also have clients all over the country and those in the Midwest, South, Texas, etc, tend to think they make way more than they actually do. They spend way more on luxuries, fancy hotels, cars, etc. While they still save, they don't view money the same way. They could make 250 - 400k and think they are so rich. Whereas my clients in the DC or NY area could make 1 - 5M and still say "we aren't rich."

Part of it is, there is so much money here, that people compare themselves to everyone else. For example, one could live in a 3M house in Wesley Heights and their neighbor's 14M house makes them feel "average."

There actually isn’t. There is way less money here than in cities like LA, NY etc. I would argue dallas and Houston have way wealthier families. After you have lived in a city like NY, the money in DC seems very middle class.

[Anonymous]

Anonymous wrote:It's funny to read this. I nannied for 6 years and the families I worked for were so out of touch with reality. It would snow and they'd suggest I should take an uber home instead of walking to public trans. I definitely did not have an extra $30 for an uber.

They would ask what I liked from Whole Foods...idk never shopped there. Or what my regular restaurants were...idk we don't go out to eat.

They would say oh your sneakers look worn time for some new ones. Nope I'm going to scrub them with dawn and then run them through the washing machine.

What is depressing about that is -- didn't they know what they paid you? Unless you did this very young and they assumed it was a "fun thing" you were doing for a bit and had family $?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I actually think the DMV is more of a middle class bubble than anything. I grew up in a flyover city and people are WAY more materialistic and spend a lot more. They live in much nicer houses, drive luxury cars and spend a lot more on vacations and the like. In dc, so many people with good incomes are living in ugly houses with ikea furniture. It seems way more middle class here. A decade ago I was living in a DC starter home whereas my friends from growing up were installing 100k kitchens.

lol

I think you mean we are smarter with our money...

I’m not so sure about that. Not only do a lot of my friends in flyover country spend a lot, but they save a lot. They have higher earning jobs and way lower housing and childcare costs. Financially they are much better off and also have a higher quality of life.

As a whole, DC (and the close in suburbs) is very subtle with it's wealth. I manage hundreds of millions in client assets and most are very modest. They live in top areas but in very reasonable homes. I have one client worth 50M + and still lives in the same home they bought 35 years ago in Bethesda. Drive VWs and Toyotas. Most of my clients in the 10 - 20M range have 1-3M homes that are well maintained but not ostentatious. They spend their money on family, travel, education and investments/business ventures.

I also have clients all over the country and those in the Midwest, South, Texas, etc, tend to think they make way more than they actually do. They spend way more on luxuries, fancy hotels, cars, etc. While they still save, they don't view money the same way. They could make 250 - 400k and think they are so rich. Whereas my clients in the DC or NY area could make 1 - 5M and still say "we aren't rich."

Part of it is, there is so much money here, that people compare themselves to everyone else. For example, one could live in a 3M house in Wesley Heights and their neighbor's 14M house makes them feel "average."

There actually isn’t. There is way less money here than in cities like LA, NY etc. I would argue Dallas and Houston have way wealthier families. After you have lived in a city like NY, the money in DC seems very middle class.

In aggregate, I don't think that is fair to say. The mass wealth, lets say, 5 - 25M is quite rampant here. Sure we don't have as many billionaires, but that's not really the point.

You have outliers in cities like Houston and Dallas.

DC seems middle class because we are more down to earth and don't buy 25,000 sq foot mansions like in Greenwich. Drive through Wesley Heights, a $10M house can appear "middle class" from the street. You wouldn't drive through WH, Spring Valley, CC and think these people are loaded.

The NY/CT suburbs are pretty rural (Darien, Greenwich, Westport) - similar to Potomac. The appearance is wealthier given the large lots and homes.