Imagine waking up one morning as a multi-millionaire. What would you do? Buy a yacht, a garage full of sports cars, or maybe a diamond tiara? While these ideas sound exciting, Hetty Green, once the richest woman in America, had a very different approach to wealth.
Hetty Green, born Henrietta Robinson in 1834 in New Bedford, Massachusetts, grew up in a wealthy family. Her father owned a successful whaling company, and her mother also came from a well-off background. Instead of playing with dolls, Hetty learned about the stock market and business from a young age. By the time she was six, she was reading financial papers to her nearly blind grandfather and following her dad to work.
Hetty’s family and school taught her an important lesson: you don’t need much to get by, and the goal of making money is to save it, not spend it. By thirteen, she was overseeing the family accounts, and at sixteen, she invested most of her spending allowance in New York society, managing to have fun with just a small portion of it.
After her mother’s death in 1860, Hetty moved back to New York with her father. She helped him manage the family business and became a financial expert. When her father passed away in 1865, he left her a million dollars and a trust fund of four million dollars. Despite the wealth, Hetty lived frugally, even turning a storeroom closet into her bedroom and eating hard-boiled eggs to avoid being poisoned, as her father had warned her.
In 1867, Hetty married Edward Henry Green, a successful investor. They lived in London for a few years, where their children, Ned and Sylvia, were born. Despite her husband’s prestigious job, Hetty’s financial skills surpassed his. She made another million dollars by investing in government bonds called “greenbacks.”
When the family returned to the U.S., Hetty’s frugality became more apparent. She bargained over prices, reused envelopes, and wore layers of newspapers to keep warm instead of buying winter clothes. Her stinginess affected her family life, leading to a split with her husband when he went bankrupt.
By 1900, Hetty had an annual income of around seven million dollars, yet she lived on about $5 a week with her daughter Sylvia. She feared people were after her money and moved frequently. Despite her wealth, she continued to live simply, even feeding her dog better than herself.
Hetty never gave up her passion for finance, working from banks instead of renting an office. She passed away in 1916, leaving a fortune estimated between 100 and 200 million dollars to her children. Sylvia donated her share to charity, while Ned spent his extravagantly.
Known as “The Witch of Wall Street,” Hetty Green’s story teaches us about the importance of saving money. Are you good at saving, or do you spend it all at once? Let us know!
Imagine you are Hetty Green, and you have just inherited a million dollars. Create a plan on how you would invest and save this money. Present your plan to the class and explain your choices. Consider factors like risk, potential returns, and your personal financial goals.
With a partner, create a weekly budget based on Hetty Green’s frugal lifestyle. Allocate a fictional $5 per week for living expenses. Discuss how you would prioritize spending and saving, and compare your budget with your classmates.
Research another historical figure known for their financial acumen. Prepare a short presentation comparing their financial strategies to Hetty Green’s. Highlight similarities and differences in their approaches to wealth management.
Write a diary entry from Hetty Green’s perspective on a day she made a significant financial decision. Describe her thoughts, emotions, and the reasoning behind her choice. Share your entry with the class and discuss the impact of her decision.
Participate in a class debate on the merits of frugality versus spending. Take a stance either supporting Hetty Green’s frugal lifestyle or advocating for a more balanced approach to spending and saving. Use examples from her life to support your arguments.
Wealth – The abundance of valuable resources or material possessions. – In social studies, we learned that wealth can influence a country’s power and its citizens’ quality of life.
Finance – The management of large amounts of money, especially by governments or large companies. – Our economics class discussed how finance plays a crucial role in the development of national infrastructure.
Saving – The act of setting aside money for future use. – By saving a portion of their income, individuals can prepare for unexpected expenses or future investments.
Investing – The act of allocating resources, usually money, in order to generate income or profit. – Investing in education is considered one of the best ways to improve a country’s economy.
Frugality – The quality of being economical with money or resources. – Practicing frugality can help families manage their finances more effectively and save for important goals.
Business – An organization or enterprising entity engaged in commercial, industrial, or professional activities. – Starting a small business can contribute to local economic growth and provide jobs in the community.
Stocks – Shares of ownership in a company that can be bought and sold. – In our economics class, we learned how buying stocks can be a way to invest in a company’s future success.
Income – Money received, especially on a regular basis, for work or through investments. – A person’s income can determine their ability to afford housing, education, and healthcare.
Charity – Voluntary giving of help, typically in the form of money, to those in need. – Many people donate to charity to support causes they care about and to help improve society.
Economy – The system of production, consumption, and distribution of goods and services in a particular geographic region. – Understanding how the economy works helps us make informed decisions about spending and saving.
