10 Money Lessons We Can Learn From Harry Potter

By Bank Bazaar | March 13, 2018

When it comes to money, we could do with a few tips from the wizard world. Here are 10 money lessons we can learn from the uber-popular Harry Potter series.

10 Money Lessons We Can Learn From Harry Potter

If somebody told you Harry Potter was just about wands and weird magic stuff that made no sense, steer clear buddy! There are more life lessons in the famous fable of the Boy Who Lived and the One That Must Not Be Named than there is in your moral science text book – especially when it comes to money.

Harry Potter was a rich guy and taking money lessons from the man and his wizarding fraternity only seems natural to us muggles. Why go ‘knuts’ about your finances when you can use these real world charms to get the most out of your money?

Additional Reading: Equity Income Funds: Watch Your Money Grow Safely

Here are 10 money lessons we could learn from the Harry Potter series:

  1. Save Money For the Future

Harry’s parents didn’t really expect Voldemort to waltz in and “Avada Kedavra” them. But they were always prepared for a financial disaster and saved up enough money for when Harry would leave his room below the stairs and venture into the magical world of wizardry, which is also run by some form of currency despite all the charms, spells and hexes.

Tuck away those extra galleons into a Fixed Deposit or Recurring Deposit. Or just put them in a Savings Account to start off with.

  1. Get Life Insurance Cover

Harry’s parents died an unnatural, odd-timed death. Apart from their savings, they probably had a good Life Insurance cover taken out because Harry had a pretty big vault at Gringotts! Even if James and Lily Potter had debts left behind, Harry could probably have paid them all off with the money he inherited from his family.

Taking out a term cover ensures your family’s security long after you are gone. Even if you have left behind debts, the money could help your loved ones avoid all the tension and hassle of paying it back.

  1. Spread Out Your Investments

While Voldemort had evil reasons to split his soul and preserve them in almost-impenetrable horcruxes, it wouldn’t hurt to duplicate what is called an unforgivable deed in the wizarding world. This one time, we’d ask you to think like Voldemort.

Investing in a diverse portfolio covers you from risks. Having a good mix of high and low-risk investments is the key to a satisfactory monetary future. If one fails, the others ensure you’re not in trouble.

You could invest in Gold, Mutual Funds or just a Recurring Deposit. Other humble options include a PPF, NPS and smaller government-backed schemes.

  1. Be an Entrepreneur

Remember Fred and George Weasly? Ron’s twin brothers who dropped out of Hogwarts to start a business based on their passion for pranks? Their shop was a huge success in Diagon Alley. Jokes apart, the twins took a road less travelled and turned entrepreneurs to double whatever money they had.

In fact, the twins had very little money, but had a rich friend in Harry. They found a great investor in Harry and requested him to fund their business. More money for the bespectacled scar-boy and the twins! WIN!

Sometimes you have the money but don’t know what to do with it. Other times, you have an idea but don’t have the money. The key is to find an investor to fund your idea or find an idea to fund. That way you can quadruple your money. There might be some amount of risk involved but there’s also high reward.

Find out how being an entrepreneur can help you make more money.

  1. Develop Healthy Financial Practices

The magical world of the witches and wizards was not devoid of its own Ponzi schemes. Enter Ludo Bagman, the wizard that got into serious money troubles. Ludo headed the Department of Magical Game and Sports and organised the first Quidditch World Cup. Despite the prestigious titles to his credit, Ludo had a terrible affinity for gambling. He also got into a load of debt, borrowing from Goblins. He even tried to pay them back with leprechaun galleons (fake money!). If Ludo had a Credit Score, it would be negative!

Don’t be like Ludo.

Develop healthy financial practices. Pay your credit card bills on time. Keep your account funded for EMI deductions and make use of loans and Credit Cards to build a stellar Credit History.

  1. Money Won’t Multiply by Itself

Even in the wizarding world, there is no magic spell to make money! Gemino – the spell to make leprechaun galleons is only used to make fake currency that disappears after a while. Such is the case in the muggle world too.

Money won’t multiply by itself. It doesn’t grow on trees, does not reproduce by itself and cannot be conjured out of thin air either. Money is hard earned and best enjoyed when earned legally. Pay your taxes, work to get your money legally, invest in the right places to multiply your money and learn to move it when the time is right.

  1. Keep Your Money in a Safe Place

One of the first few lessons Harry ever learnt was a money lesson from Hagrid. The friendly giant took Harry to Gringotts – the super safe wizard bank where safes were guarded by three-headed dogs and monstrous dragons. One would have to take a supervised roller-coaster ride to access a safe. The layers of security at Gringotts were almost impenetrable.

Similarly, find a safe financial institution to safeguard your money and valuables. You could very well buy a locker and keep your moolah at home but we assure you, your money is safer in a bank.

  1. Fancy Some Health Insurance?

The wizarding world has seen several accidents and amputees. Be it Mad Eye Moody’s fake eye or Ron’s bezoar choking incident. Be it Harry’s basilisk wound or a dangerous pox, healing potions and spells always came at a cost. In fact, Harry’s abundant inheritance came from the medical industry. Apparently, his ancestors made all the money inventing special potions to cure various diseases through the generations.

Medical expenses are rising by the hour in the muggle world. To secure your medical future, start early – get a Health Insurance plan. You could get an attractive interest rate on your premium. The younger you are, the lower the rate is. The older you are, the higher your premiums could get. But trust us, it is worth it.

Would you want to go running around for money when a family member or you yourself are too ill to move? A Health Insurance policy protects your financial interests while the doctors nurse you back to health. A stress-free treatment would also probably help you get better faster.

  1. Start a Travel Fund

The trio – Harry, Hermione, and Ron – were always travelling to find the horcruxes. While it was easy to traverse realms in the wizarding world, time travel and warping is still an alien concept to us muggles, which is why we suggest starting a travel fund to fulfil your dreams.

You could always open a savings account, put in that extra money and cut down on some of your night outs to save up for a travel fund.

Don’t forget to get Car Insurance to insure your ride lest you bump your flying car into the whomping willow.

Want free air miles? Check out some awesome Travel Credit Cards.

  1. Make a Will

If there was one great thing about Harry Potter, it was the legacy that each character left. Be it James’ invisibility cloak or Sirius’ mansion – everybody in the series left something to their benefactors (in this case Harry).

Apart from your Life Insurance policy, you could always leave your assets to your loved ones. A little parting gift for them to keep remembering you while also enjoying the benefits of the gift.

Additional Reading: 5 Extremely Important Reasons To Consider Writing A Will

All set to make more galleons? It’s time to say “imperio” to your financial problems.

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