The culture you grow up in is, most often, the main contributing factor in our varying predispositions, tastes and social identities. We may think the Germans are very systematic and logical in line with their successful manufacturing of cars and precision instruments or Swedes are minimalist but friendly, much like Ikea. And with every culture comes a certain set of social structures that more than likely influence the way we deal with money. In this series, we look at different cultural attitudes towards money and how they’ve come about.
The world knows and admires them for their world class food, their beautiful language and their cinema but what’s the French culture around money? To answer that question, let’s go back to the time when the last Queen of France, Marie Antoinette. uttered that famous phrase “Let them eat cake” that triggered the uprising of a peasant population. In May 1789, the French unleashed a war against the aristocracy and the financial inequalities of the time, in an attempt to rebalance the scales that has had a lasting effect on the French psyche.
The French Revolution led to the rise of the State and minimised the powers of the aristocracy in everyday life. The French are well-known for having one of Europe’s most generous state welfare systems, with ‘the French government spending still 56% of gross domestic product (GDP), the highest for any country in the OECD’ in 2020.* With one of the youngest retirement ages in Europe, substantial unemployment benefits, a world-class healthcare system and numerous other premium welfare structures – the French reliance on the State is ingrained in its culture, And when a President attempts to reform any of these institutions, there’s always large uprisings, like the ‘Mouvement des gilets jaunes’ or ‘yellow jackets’ movement in 2019.
This fond relationship with the State is also obvious in what the French do with their money. The French ‘save more than other countries, at around 15% of their income’. And the majority of the population put their savings into a financial investment ‘Livret A’ account, where the interest rate is low and fixed by the State but is also guaranteed by the State and tax free. Their second love is, of course, ‘investir dans la pierre’ – or what we would call investing in bricks and mortar.
As in many countries, a social divide exists within French society between those who come from “old money” and those who are of “new money.” Those who have inherited wealth are called ‘un rentier’ (a person living on income from property and investments). A certain disdain can be cast on the entitlement of this group but also, sometimes, envy (see this popular account for “Cheveux de Riches” that catalogues the hairstyles of rich, old men in France to understand what ‘un rentier’ looks like.) If the term “new money” is tossed around, it can often be used to highlight a lack of class or sophistication.
The strong Catholic roots of France have also contributed significantly to the conservative French attitude toward money. The Catholics have continually warned against a ‘love of money’ and perpetuated the myth that the rich won’t go to heaven, casting a shadow of sin over wealth. It’s not typically positive to be seen as overtly wealthy or as some might say, “pour vivre hereux, vivons cachés’ (to live happy, live hidden).
But this conservative attitude with money doesn’t apply to artists or athletes in the French lexicon. Artists and athletes aren’t as highly criticized for any frivolous spending. The importance attached to these cultural sectors allows these individuals to be more financially free, without as many traditions or expectations imposed.
The French attitude towards money is very a much a story of high culture versus old wealth versus new economy, which continues to mix and be reshaped by modern times. The financial mentality of the French does have such a long legacy and depending on who you ask, it has shaped a lot of personal practices and habits.
Funnily enough, I sent an early draft of this article to a French person for their review and of course the immediate response was, ‘I absolutely disagree with every point.’ Classic French.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.
* Simon Koper, 2020: https://www.ft.com/content/39090b2a-31ac-11ea-a329-0bcf87a328f2
