It’s Harry’s birthday on the 31st of July, and Potterheads around the world are gearing up for a celebration. It’s a day of jubilation following the heartbreak of not having received a Hogwarts letter – yes, we’re no longer teens and are still waiting for it, after all, Hogwarts is home to all.
The Harry Potter series has taught us a lot about life, way more than school ever has or ever could. And if you look closely, you’ll learn about finance too from your fandom. Agreed that we never see the trio or any other student in Hogwarts attend a Finance 101 or How to Pay your Taxes class throughout the series. There’s a lot we can learn about how to manage our finances based on what they did.
Gringotts, a bank in Diagon Alley run by goblins, is the only bank in the Wizarding World and gulping galleons! It is the safest bank there can ever be! Started in the 1400s, Gringotts has had only two break-ins with one of the successful and only because that was by the Boy Who Lived himself.
Your hard-earned money deserves to be kept safe and you ought to read up well in advance before deciding where it is that you would like to deposit your money. You could deposit it in a savings account or a fixed deposit in a bank, depending on your needs and requirements. Consider keeping your money in a savings account that provides a higher interest rate than the others such as the Kotak 811 account. Deposits of up to Rs.1 lakh in Indian banks whether public and private banks is insured by DICGC (Deposit Insurance and Credit Guarantee Corporation), a subsidiary of the RBI.
Even if your no-maj (the American version of Muggle) bank doesn’t have a cool underground rollercoaster through which you reach your vault, or a fire breathing dragon, or a multiplying gold charm; be sure that you pick a bank that will keep your finances secure.
When Harry visits Gringotts for the first time, he is surprised to see that his parents had left him with a fortune. This made sure that Harry didn’t have to worry about money. It was all possible because his parents made a will. Not just this. Sirius Black, Harry’s godfather also ensured that Harry would inherit his house. Also, Dumbledore legally left behind certain items for Harry, Hermione and Ron in his will (remember the Golden Snitch and the sword of Godric Gryffindor?).
Well, our point is that it is never too late to have a will, Lily and James were only 21! Your ‘will’ could even be as simple as a short notarized document that outlines your plans, and this could save your near and dear ones some severe trouble down the line.
Though Harry was left with galleons, he chose to spend the money wisely rather than splurge. The first time Hagrid takes Harry to Diagon Alley, we see him buying only that which he needs. Harry knew that he needed the money to sustain him till he finished his education and that the money his parents left him behind would be his sole funding for his seven years of education, nutrition and other expenses and hence, he spends it accordingly. Although Harry is tempted to splurge on luxury goods and expensive products like a new Nimbus 2000 Firebolt, he resists, knowing that it’s a want and not a need. The few times that you see Harry spend, it is usually on his friends, such as buying souvenirs for Ron and Hermione at the Quidditch World Cup match or loaning money to the Weasley twins.
This is an important lesson that you would do well to remember. It might seem like you need that latest iPhone or those Nike shoes, but evaluate if it is a need or a want. It is always easy to go wild with your card and splurge, but the smarter move is always to check if it is something you really need and only then spend your money. Savings go a long way in ensuring financial stability and independence.
Also read: Don’t let online shopping sites fool you
Harry was blessed to have an advisor and a mentor like Dumbledore, who understood Harry, knew his strengths, weaknesses and hopes. He was someone who Harry could trust. Harry was incredibly loyal to Dumbledore and often went to him to seek advice. Dumbledore’s advice has benefitted not just Harry but all of us.
Finance and money management aren’t the easiest of things and none of us are taught any of this in school. Which is why it is always wise to have a financial advisor who you can trust and knows your needs and plans. This will help you make better decisions and help you evaluate them and plan.
The Weasley twins, Fred and George, are a notorious pair and masterminds when it comes to pranks. As teenagers, Fred and George experimented with a variety of prank products such as the Wildfire Whiz-bangs and the Portable Swamps. By the time they reach their last year in Hogwarts, Fred and George, have launched a mail-order business through which they build up a loyal customer base until they could afford to open their shop in Diagon Alley.
We’ve always heard it said that if you love what you do, then it’ll never feel like work. A lot of us have hobbies that could blossom into full bloom businesses if we put in the slight effort.
Ludo Bagman, in the series, has a huge gambling problem. He bets on the Quidditch World Cup by borrowing money from the goblins, and then again on the outcomes of the Triwizard Cup; and then is on the run from them when he cannot pay them back. After losing bets on the Quidditch World Cup, Bagman tries to pay off some of his debts with Leprechaun gold (which disappears overnight) but was cornered by goblins outside the stadium. Since he didn’t have enough money to cover his debts, he made another debt at the Triwizard Tournament and lost.
This should seem like a no brainer, but the number of people involved in online gambling keeps increasing daily. When you’re rolling the dice with money, be it at the casino, remind yourself that no outcome is a sure thing. Before you set your wager, make sure your finances can handle the worst-case scenario. Many years have passed since the Harry Potter book was released. It remains as one of the most loved books of all times. Apply these money tips and say ‘evanesco’ (the vanishing spell) to your money problems.
Tags: money lessons, harry potter, harry potter series