You must have either watched, read or at least heard about the Harry Potter sequel and J.K. Rowling, the author of the novel. Reading between the lines one can pick out at least six financial lessons. Harry Potter is a money smart boy who used his inheritance wisely and invested his fortune profitably. Below are a couple of lessons we can learn from him and his friends.
1. Keeping Your Money Safe
Harry Potter saved his money in Gringott’s Wizarding Bank, “The safest place in the Wizarding World” as our giant friend Hagrid Gringotts stated. We learn that it’s best to keep your money in a bank since you will be assured that your money is safely tucked in a vault that is untouchable. All threats of identity theft are closely monitored and if you visit the bank often enough, it will be easier for your personal bank or teller to spot an imposter, like when Hermione tried, somewhat successfully, to pass as Bellatrix Lestrange.
Your local bank might not have an underground roller coaster to access vaults, a fire-breathing dragon or a multiplying gold charm, but it will assure you that your finances are secure.
2. Don’t give up on your small business dream
What better characters to exemplify this than Fred and George Weasley? These twins went a long way to make their dream of owning a prank store a reality. They started off by advertising their aging spells and fireworks across Hogwarts. By the sixth book, these infamous boys launched their successful dream business, “Weasleys’ Wizard Wheezes.”
3. Find a trustworthy investor
The Weasleys brother’s got their start-up capital from Harry Potter who donated 1,000 Calleons of his Triwizard Tournament winnings to them. Harry went as far as to help spread word about of their shop around the castle. This form of word-of-mouth advertising, especially from your investors, is essential to operating a successful new business. It shows that your investors believe in the success of your business.
4. Don’t steal, you’ll get caught
Mundungus Fletcher, an original member of the Order of the Phoenix, is a well known thief. He longs for the five finger-discount, isn’t trusted and not particularly liked. Harry even caught him red-handed once selling items which he had stolen from his godfather, Sirius’s house.
While prisons don’t have dementors floating around, possible jail time for theft doesn’t sound like a walk in the park.
5. Monitor your finances, even if you’re wealthy
Harry spends the first 11 years of his life living under the stares in a teeny closet-sized space. But even after being introduced to his stacks of gold coins, he chose to use his money wisely, not spending it on unnecessary things.
6. Money doesn’t buy happiness
The Weasley clan lived in a cramped, cluttered and crooked burrow. They recycled their school books and unfortunately for Ron, shared non-unisex dress robes. In reality they were they were a happy lot.
The Malfoys, however, with overflowing bank accounts, their battered servants, and their cold glances; they are some of the unhappiest characters in the novel.