New House Rule - PLEASE READ

After noticing a trend of the party's collected wealth growing at an alarming rate every time someone (Pete, ehem) made a new character and subsequently died, I decided that something had to be done. I've been thinking about this for a while and here's what we're gonna do...

(Begin Godlike DM voice from above)

Starting gold by character level only exists for character levels one through four. This lets those Oh-So-Squishy fledgling adventurers keep their normal options, and hopefully survivability. If you are making a new character at level five or above in one of my campaigns, you begin play with 2,000 gold pieces to purchase equipment. For higher level characters that is MUCH less gold than the standard. This is to avoid an adventuring party from becoming over powered simply because of the shiny toys they can afford. Perhaps that new level 8 wizard gained all his experience through training or research, and not out in the wilderness incinerating whole tribes of giants. Maybe the new fighter was a bouncer or bodyguard until very recently, not standing in front of an open portal with dead enemies piling up around him. My point is that an adventurers REAL career starts when he rolls that first d20, not years before. This new rule reflects that, as well as helping to maintain balance. The party is, of course, free to loot their own dead. If the party then decides to horde everything and not help out the new recruit, you only hinder yourselves. I leave that decision up to you, but you would do well to remember that eventually you may be the one on the other side of that situation. On one final note, I have a strong feeling that the economic impact of this new rule is going to be the cause of many laughs and adventures in the sessions to come.

(End Godlike DM voice from above)

I think the spirit of what you say is very valid. I might go about it a little differently though. Here's my recommendation--you're the DM though, do what you wish.

The accumulated wealth is only really a problem once the characters get to be "advanced beginners" somewhere around fifth or sixth level. I'd allow the party to use starting gold to create characters up until that point. However, once the threshold is reached, institue the 2,000gp limit. This way an infantile party doesn't get gipped--a 3rd lvl character is supposed to receive 3,000gp, already above your 2,000gp and only 3rd lvl. 5th lvl has a big jump to 10,500 from 6,000gp at 4th lvl. I think that's a pretty safe cut off point. Any character that's fourth lvl or lower gets starting gold as stated. However, fifth lvl characters and up receive the 2,000gp house rule.

Suggestion considered and approved. Original post amended. Don't ever say I can't be reasoned with.