« Interested in participating in a project about middle class debt? | Home | Re: There’s no shame in not being able to afford it »

Re: Signalling wealth

By Meg | January 22, 2008

Recently, I read Signalling wealth at My Wealth Builder.

Here’s an excerpt:

Because it’s impolite to broadly share what one earns, people find other ways to signal wealth and elevate status within their community. Nicer cars, nicer houses, nicer clothing etc. are just some of the ways one can signal wealth to one’s peers. However when overdone, wealth signalling can lead to unnecessary and excessive spending, even to the point causing significant debt and significant loss of wealth.

Don’t I know it!

The author goes on to list how he signals wealth: his house in a good neighborhood, his Ivy League education, and the cocktails that he occasionally enjoys. The authors attitude seems to be that signalling wealth isn’t necessarily a bad thing and that it’s “human nature”, but that it’s important to choose carefully how one does it, otherwise you won’t have any wealth to signal.

I agree that it is human nature, and while it won’t get you nominated for sainthood, it’s really not a bad practice in moderation. From a practical perspective, I’d even go so far as to say that it can be an important part of getting ahead because people generally see signs of wealth as signs of past success and likely future success.

That all got me thinking about how I signal wealth. So here’s my list:

Yeah, I realize that list is pretty stereotypical for us women. Maybe there is a reason. Some people are so quick to say that women spend so much on their appearances because they have low self esteem and want to get male attention. Some women may, but after thinking about my list, I think that signalling wealth is probably a much stronger motive (along with dressing for oneself).

I’ve also been thinking about how men signal wealth since they don’t tend to focus on such obvious signs like clothing (though perhaps that is changing). The things that come to mind first are cars and tech gadgets. Also, when I think about historically male and female professions, the male professions tend to have longer ladders of titles, another way people can signal wealth. That’s just me thinking aloud, but I wonder how true it is.

So, I’m curious, how do you signal wealth? How do the people around you signal wealth? Does it ever backfire?


Tags: , , , , , , , , , , , , , , , , , , ,

Related Posts:

13 Responses to “Re: Signalling wealth”

Miss Janey Says:
January 22nd, 2008 at 3:51 pm

Miss J admits she shops too much and takes pride in dressing well. Hats, bags, shoes- not a lot on make-up. Sh ecolors her own hair, gets inexpensive mani/pedis, but not regularly…. She’s working in cutting back- buying quality over quantity, waiting for sales. Her proudest possession is her HOUSE. In the past year, she and the Mister have improved it by updating room colors and turning an unused room into a closet for Miss J. Miss J spends a LOT of time in the yard, keeping it looking nice.

Meg Says:
January 22nd, 2008 at 9:59 pm

We’re very proud of our house, too, though we have a lot of work ahead.

And I definitely spend too much on.. well.. everything.

m Says:
January 23rd, 2008 at 4:19 am

I don’t understand making purchasing decisions based on trying to signal financial status. If it’s things you’d have bought for yourself anyway, I get that, but to make purchasing choices based on how others will perceive one’s wealth? What is the purpose?

The excerpt mentions elevating one’s status in the community. What exactly does that mean and why would status be elevated based on one’s possessions or money? In my world, how people are perceived has to do with accomplishments, kindness, creativity, etc. not what one owns or spends on.

I have to admit, this whole concept is lost on me. I’m not sure I’m even understanding what it is much less the reason for it. I’m going to go read the original post you linked to to see if it makes more sense.

Meg Says:
January 23rd, 2008 at 10:57 am

That’s is wonderful, M.! If only the entire world worked like yours!

Sadly, people are preoccupied with wealth and use it as an indication of other talents and status, however unfair it may be.

There is also quite a bit of one-up-manship, to be sure.

m Says:
January 24th, 2008 at 5:33 am

I wonder why I haven’t come across this type of thing before? Maybe it’s cultural and isn’t something that occurs a lot where I live. It definitely isn’t a part of my social circle and never has been because all of this is like a foreign language to me.

Guess things are different in different social groups. I have always worked in nonprofits and education and editing/journalism. My friends are mainly academics, “blue collar” workers for lack of a better term, artists and the like. We don’t do “status” and wealth signalling.

Around where I live most people are urban hipsters in hoodie sweatshirts and chucks and razored hair, or old hippies with gray hair and clogs (I have them too), and so on. Sure I see some BMWs, mostly driving poorly, and there is PLENTY of wealth here (it’s one of the most exp. parts of the country after all), but overall, if people are wealth signalling around here, then I’m not getting the signal.

And that’s just fine with me. And not to say I don’t like some pricey stuff. I do. I just don’t like it *because* it’s pricey. And it’s certainly got nothing to do with what anyone else thinks or how they view me. In fact, I’d be more likely to think poorly about spending a ton of unneeded money on something than to be impressed by it. I like frugality not excess! And I don’t believe in status. It doesn’t exist if you don’t participate. And I don’t participate.

Thanks for the thought inspiring post.

Fabulously Broke Says:
January 24th, 2008 at 5:00 pm

Ditto with your comments.

I don’t show wealth because I don’t need to.. (and I don’t really have it :P) but my clothes look neat, clean, mended, expensive and I have a dearth of clothing to choose from so it’s never just a couple of shirts and pants/skirts/tops… And my accessories/bags are really where I have a lot of choice to make many different outfits.

But..

I don’t have a car, I rent (if I have to), and I’m very frugal in all other areas of life, asking myself if I really need it, or if it’s something I can live without.

I’m really trying to move towards the minimalist zen lifestyle.

Kiran Says:
January 25th, 2008 at 9:18 am

Hi Meg and everyone,

I find it depends on the particular group values. I go to uni and like to, but also feel compelled to, dress nice, but not TOO nice. It’s important that other students see me as approachable and down to earth. Like, I wear foundation, blush, lipgloss everyday but it’s a natural look (to the point where I’ve had people think I’ve got none on). I have an expensive pair of boots that came in a distressed look, as if they were from the opshop. I also go to an ‘alternative’ mother’s group where women wear (for example) crocs and birkenstocks; when someone there complimented an outfit I had on I felt compelled to let them know which bits were from the Salvation Army. I felt particularly (I’m afraid) smug the other day when they were discussing baby slings and I said I only had ONE sling with my son, and no pram - I suspect that got me kudos. There is such a thing as CULTURAL capital, as well as, or in competition with, financial capital. In this group, at times mothers who drive nice cars etc have been stereotyped or laughed about. I find this just as cliquey/loveless as competition to appear wealthy. There is a (probably unconscious and certainly unintentional) sense of STATUS involved in being ‘in-the-know’, about anti-consumerism, organics, eco stuff, etc. So I continue to walk a fine line of dressed up/not too dressed up, for all the different unspoken social rules I may encounter, I suppose, teetering between displays of various types of ‘wealth’! But I kind of like that, being able to shift fairly seamlessly. And at the end of the day, it’s confidence, and taking things lightly, that gets you through. And sometimes it’s even worth challenging people who may judge you or others, positively or negatively, whatever the basis - of course you’d feel stronger to do this when looking nice!

Meg Says:
January 25th, 2008 at 1:26 pm

Hi Kiran, FB, and M.,

You’ve all made excellent points about how important it is not to take things too far. After all, people don’t react well to show-offs either. It is a complex social system. I think people do have to be rather sneaky about it (no serving your guests on solid gold dishes for sure!).

Kiran, I think you’re very right to stress ’status’ over wealth because in many groups (like M.’s it seems) wealth doesn’t equate with status.

Meg Says:
January 25th, 2008 at 1:39 pm

FB,

Your clothes look “expensive” and you have lots of clothes and accessories but you don’t think you’re showing wealth — or that you even have it? I don’t blame you, I myself didn’t think about it much until recently.

I’ve been thinking more about this, and I don’t think you have to be a millionaire to show wealth. It’s relative. I’m sure that some people would look at our closets and think we were crazy wealthy.

Karen Says:
April 21st, 2008 at 10:18 am

I don’t think that signaling wealth is necessarily desirable. It’s not something I think about a lot. Although I will admit to making sure I’m wearing my diamond ring when I’m shopping or when I was car shopping so salespeople would get the idea that I’m, um, not broke. So I’m certainly not above it.

I think some of this has to go along with your personal self-image and what you feel is important to project about yourself. For me, projecting “I’m wealthy” isn’t important, most of the time. Sometimes I will want to dress more nicely in order to feel I fit in.

That said, I do notice people who are dressed well and who look well groomed and wealthy. Wealthy does have a certain look, for sure.

Meg Says:
April 21st, 2008 at 10:49 am

Hi Karen! I love what you said about wearing the diamond ring! I think that’s something a lot of us do, whether we think about it or not. It’s sad, but a lot of salespeople just won’t give you the time of day if they think you can’t afford what they’re trying to sell.

And really, I think that’s a lot of it — just showing that we’re not broke in little ways like that (even when we are). When I think of “wealth”, I don’t necessarily think of being wealthy in the sense of a millionaire. Sometimes it is just about saying “I’m not poor.”

And yet, I don’t believe there is anything wrong with being poor, but there is a difference in mindset I’ve noticed between some people who look poorer than they are because they waste money on cheaply made stuff and don’t take care of it while others will wear their Sunday best day in and day out with such dignity and grace that you’d never guess their real circumstances. (And then of course, there are those of us that buy their perceived wealth on credit card and have to pay for it later.)

Comments