The Star Wars franchise has been influential across multiple generations. It’s sparked conversations between parents and kids about overcoming challenges, conquering the bad guys, and even how to manage relationships with family and friends. But what we love most about Star Wars is that there are also some financial literacy tips you can learn from Luke, Yoda, Princess Leia, and the whole crew.
Who knew some of our favorite childhood characters could teach us a thing or two about financial literacy? Let’s review what Star Wars teaches about saving, investing and spending money.
Save money, you will.
1. Diversify your savings and investments.
Putting all your savings in one place could prove to be harmful in the long run. Even if you think that one particular stock is a good investment, you truly never know what could happen. Darth Vader was charged with protecting the Death Star. The Empire invested heavily in it and after the first one was destroyed, they pooled more resources to build a second one. So much of the Empire’s resources went into developing it.
Investing heavily in a single opportunity didn’t go well for the Empire, as both Death Stars blew up in their faces. When it comes to investing money, it’s good practice to diversify your savings and investments. Savings and investment opportunities such as mutual funds, stocks, bonds, 401ks, ETFs, IRAs, and others will not only keep your savings safe but can help you grow your wealth faster.
2. Pay off your debts as soon as possible.
Do you remember why Han Solo ended up frozen in carbonite? He failed to pay the debts he owed Jabba the Hutt, and bounty hunter Boba Fett was sent to find him. Don’t get hunted down by the modern-day Boba Fett.
Create a budget that gives you room to pay your bills while continuing to pay off your debts. Delay the instant gratification of spending money on unnecessary items and focus on paying down your debt. The longer you leave debts unpaid, the more the interest builds, and the more your debt continues to grow.
It’s important to understand who your debts are held with and if you can consolidate them. Specifically, with medical debts, call the account holders and ask if there are payment plans or options to negotiate the remaining balance. You’d be surprised at how often they’ll be willing to work with you to settle the debts, even if it means you’re only paying the minimum payment each month.
3. Let a financial advisor be your guide.
If you feel overwhelmed in managing your money and increasing your financial literacy, a financial advisor can be your Yoda. There’s a lot to learn when it comes to investing. Financial advisors can help walk you through the process, tell you which savings accounts would give you the best return, and what stocks are good to invest in for the short and long term.
It’s important to do your research and hire a reputable advisor. If you can get a recommendation from trusted friends and family, that’s a good place to start. Even with an advisor, it’s important to take notes and research the investments on your own and learn from them. As Luke eventually became a Jedi Master in his own right with guidance from Yoda. You too can wield the power of managing your finances with help from your guide.