Value resets

The recession has caused a significant number of America’s wealthy to re-evaluate their lifestyles, according to a survey by PNC Wealth Management, with 42% saying they have felt a negative impact on their family budget.

Only 34% have experienced a negative effect on their lifestyle, according to the sixth annual Wealth and Values Survey.

The survey was conducted online within the United States by Harris Interactive in September and October 2009 among a nationwide cross section of 1,046 adults (age 18 or over) with annual incomes of $150,000 or above (if employed), at least $500,000 of investable assets (unless retired) or at least $1 million of investable assets (if retired).

In addition, wealthy Americans have changed their views of what is important as a result of the recession, emphasizing living within their means, developing an appreciation for non-material aspects of their lives and re-evaluating priorities.

“For wealthy individuals, the recession has presented an ideal opportunity for a strategic analysis of their current lifestyle,” Steve Pappaterra, senior vice president and managing director of wealth planning for PNC Wealth Management, said in a statement. “It is time to strip away the clutter, discern what is most important, and develop tangible action steps to ensure that key goals and dreams are accomplished and important values are passed on.”

OTHER SURVEY FINDINGS
• Nearly nine out of 10 (88 percent) believe it is "more important than ever to live within my means" and 66% believe they have "developed a greater appreciation for the non-material wealth in my life."

• Half (50 percent) say they "feel more centered because the recession has given me an opportunity to re-evaluate my priorities."

• Also, concern over children becoming more spoiled has risen dramatically in the last two years. This year’s survey revealed that 35% "believe that my children may be too spoiled by money and have too many material possessions," up from 22% in 2007.

• Just over half (51%) believe the recession has changed the way their children will manage their finances and has prompted 47% to discuss money management with their children.

• Four in 10 (42%) have cut their spending on non-essential goods, while 29% have provided financial assistance for friends or family who need it.

• Among the ultra-wealthy (those with $5 million or more in assets), 39% are more likely to have provided financial assistance to friends or family, compared to 26% of those with assets of $500,000 to $1 million.