Trust Fund Babies Cut Back in Recession
Even if they are still rich, the crisis brings new awareness and discretion.
Sept. 23, 2009— -- This year, there won't be any three-and-a-half-week vacation in Europe for Sarah, the 30-something daughter of a self-made millionaire.
In fact, these days, Sarah and her friends have cut a lot of things out of theirbudget: fewer parties, fewer big purchases and no more long, destination weddings.
In this recession, even the super rich and those with hefty trust funds are cutting back. They might not be going poor, but these once high-flying socialites are now finding that it's either imprudent or just in poor taste to spend cash the way they once did.
"We've never done without and the chance of having to live in possible poverty is frightening," the Washington, D.C. area resident said. "Especially coming from an upper class, the possibility of having an entirely different lifestyle is very sobering."
(Sarah, like other wealthy individuals we talked to, was hesitant to talk openly about her finances. ABC News agreed to shield her identity, including her real first name, for this story.)
"I definitely have felt a difference," Sarah added. "The simple things in life, even a simple happy hour, don't come as frequently. People are going out Friday as opposed to Saturday, or Saturday as opposed to Friday. They aren't going out every night."
Her annual trip to Europe is now gone. So are the normal trips to her summer beach house.
"It just feels tacky," she said.
"I've seen friends and colleagues lose their homes in the last year, which has been terrible," Sarah added. "There's a part of you, coming from the privileged life that I've had, that wants to give them a handout and help, but there's also that part of you that knows it's not your place."
At one point, Sarah estimated that she lost about 25 percent of her portfolio, but said it has since rebounded a bit. Her family has always talked about money, but these days, her father is taking a more active interest and "hands-on" approach to her investments.
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