It’s awards season for the movie industry, and everyone’s talking about this year’s Best Picture nominees. But there are some films from the recent past that are still worth talking about in regards to the important financial lessons they provide. This U.S. News article by Sabah Karimi highlights some movies we can all learn from.
We often turn to movies for an escape, but many can teach us some valuable life lessons – especially when it to comes to managing money. From the disastrous effects of greed and corruption to the dangers of instant gratification, there are lots of movies with powerful financial lessons.
Whether you’re planning a movie marathon this weekend or just want to tune in to a movie that will give you a fresh perspective, take your pick of any of these five films that deal with money matters.
“The Money Pit”
This popular ’80s movie is the perfect example of homebuyers making an emotional decision versus a more rational one. The stars of the movie rush into purchasing their dream home because they are enamored by the seller. In truth, they should have done more research about the property. Being unprepared for all the house repairs needed left them throwing away their hard-earned dollars into a money pit.
Lessons learned: If you’re thinking about buying a new home or are a first-time homebuyer, make sure you do your homework about the property and the homebuying process. Don’t make emotional decisions at any stage of the buying process, and create a realistic budget to negotiate based on what you can truly afford.
“Wall Street”
In the 1987 film “Wall Street,” young stockbroker Bud Fox falls in love with the flashy lifestyle of the rich and powerful. Fox spends money he doesn’t have on an overpriced apartment and expensive art just to keep up with the Joneses. Fox’s entry-level stockbroker job can’t sustain his spending spree, and he’s forced to use insider trading to help pay his bills. This movie shows how much Wall Street traders might risk in order to keep up the appearance of success.
Lessons learned: Making an honest dollar will serve you well in the long run. Managing those dollars well with a budget and mindful spending – learning to live within your means – can prevent you from falling into the greed trap and even considering illegal activities to fund a lavish lifestyle.
“The Untouchables”
This movie might just make you think twice about neglecting to file your income taxes. In this 1987 film about mob boss Al Capone, the FBI tries everything they can think of to put Al Capone behind bars. But despite the FBI’s best efforts to put Capone away on serious charges like murder or racketeering, the government ultimately catches Capone on the simple charge of tax evasion. Al Capone is finally brought down, not by gun-toting FBI agents, but by accountants wielding ledger books.
Lessons learned: While you might not be a criminal kingpin, failing to file your income taxes can lead to a determination of tax evasion by the IRS – whether it was intentional or not – and will hurt your credit. You may also face fines, serve prison time and end up with a criminal record. File and pay your taxes on time to avoid penalties or an audit. Remember, you can always request an extension to file before tax day if you need some extra time.
