Harry Potter may be iconic for the millennial generation. After all, we had the privilege of growing up alongside our favorite characters for the past 20 years. (Don’t worry, I can’t believe Harry Potter has been around that long either!)
The stories and characters are certainly worth revisiting time and time again. Besides the series’ tales about love, friendship, and bravery, Harry Potter teaches valuable lessons about money.
It’s true. If you look a bit deeper, here are some takeaway money lessons woven into the fabric of the Harry Potter books, movies, and brand.
You Need to Have a Will
After living in a cupboard under the stairs for 11 years, Harry Potter not only finds out he’s a wizard, but he also learns that his parents left him a considerable amount of money.
Although his parents died at a very young age, when Harry was just a baby, it’s clear they had a financial plan in place. They planned to leave their gold to Harry. Just think what would have happened to Harry if his parents didn’t plan for the future before their demise. Life definitely would have been harder for him as you can be certain his aunt and uncle wouldn’t have helped him pay for school supplies. Perhaps a wise takeaway: Save for your retirement when you’re young and make sure to list beneficiaries on all of your savings and investment accounts.
The Power of Compound Interest
Harry not only benefits from his parents’ will, but he also reaps the rewards of compound interest. That’s right. He left his money untouched for 11 years, and when he opens his vault for the first time at Gringott’s Wizarding Bank, he discovers that he has piles and piles of money. Even Harry is astounded at the amount of gold in his vault.
Imagine how big of a fortune you can amass if you start investing now and leave your account untouched for years. If this is daunting, you can start growing your savings right now simply by automating your savings with the help of a bank account like Chime.
Harry’s friends, the Weasleys, may not have much money, but they certainly know how to make it work for them.
Although they were belittled throughout the series by Draco Malfoy and others, the Weasleys continued to wear hand-me-downs and homemade clothes to save money. They also live in a modest home that has clearly been the subject of many DIY home projects over the years. Molly’s clothes are worn and patched in the movies and they opt to travel by floo powder rather than buying individual broomsticks for each family member.
You Can Turn Your Passion into Profits
Fred and George Weasley are the jokesters of their family and are always playing pranks on their mother and other family members.
Eventually, they start creating their own magical joke products, which they sell to other students at Hogwarts for extra money. From there, they start a mail-order business to sell more of their products.
The Weasleys eventually saved up enough money and, along with a loan from Harry, opened up their own store-front in the famous Diagon Alley. The lesson here is that it is possible to turn your passion into profits.
Money Doesn’t Always Equal Happiness
Perhaps the biggest lesson from the Harry Potter series is that more money doesn’t always equal more happiness. In fact, there are times when the complete opposite is true: The more money you have, the more miserable you are.
For instance, both the Dursleys and the Malfoys are portrayed as wealthy, and yet they are always seeking more – more money, more power, more stuff.
On the other hand, the Weasleys are some of the poorest characters and they are always happy spending time with those they love. Isn’t this what life is truly about?