Movies about money that will move you.

Pop culture has plenty to teach in terms of financial literacy – movies about money, for example.
 
Indeed, having discussed popular books about money in this space, I think it’s worthwhile to talk about a few popular films about money. But let me clarify that. The movies I’m thinking about are works of fiction primarily experienced on a gut level rather than on the more rational level of a reading experience.
 
To put it another way, through the image-oriented, make-believe world of movies, I think it’s possible to experience something like emotional learning about money in addition to the more cerebral lessons that come from books most often created with education, rather than entertainment, in mind.
 
While there are few good feature films whose stories directly address crippling debt and ways out if it, there are a number of great movies I can think of that offer general life lessons about money. From these films insight can be gained into the deeper urges, influences and expectations that play out in our lives in the context of money.
 
Here, then, is my movie list. It includes five mainstream features that tell interesting stories relating to money management and finance – if only as a byproduct of the central storylines.

Doubtless many of you have already seen some or all of these films. If that’s the case, my advice is that they are worth seeing again on DVD, particularly if you’re in a situation where you’re evaluating or re-evaluating your finances and what money means to you in life.
 
• Wall Street (1987). The message of this memorable film resonates even today – in fact especially today – thanks to a bad guy known as Gordon Gekko, the greedy, ruthless Wall Street titan played by Michael Douglas. Some 23 years after its release, we’re told the movie Wall Street will be getting a sequel. The new movie has a lot to live up to. The original film offered as clear a lesson as ever there was about putting greed and personal interest before ethics, self-respect and matters of the heart. Here, specifically, the heart belongs to one Bud Fox (played by Charlie Sheen). As Gordon Gekko’s eager and ambitious financial gopher, Bud learns through a number of twists and turns that coveting money and cheating your way to the top can have dire consequences. The story stands as a timeless reminder that if something in life seems too good to be true, it probably is too good to be true. It’s good advice a lot of people with money troubles ought to consider since financial difficulties often stem from unrealistic expectations and exceeding one’s bounds.

• The Shawshank Redemption (1994). There are a couple of important messages in this critically-acclaimed film about a wrongly accused New England banker named Andy Dufresne (played by Tim Robbins) who is sent to federal prison for many years. Andy suffers some terrible ordeals there. But thanks to his perseverance and his commitment to a carefully thought out plan, he escapes from prison. He even manages to create a financial nest egg for himself. While in prison, he is appointed money manager to a corrupt warden whose ill-gotten gains eventually end up in Andy’s possession through a little sleight of hand. The story is a good, if unusual, reminder to anyone that focus and patience are required for long-term security. The movie also illustrates life’s uncertainties. None of us can be sure about what fate holds in store, so we must do our best to be prepared; we must take the good with the bad, and learn to adapt.

• Trading Places (1983). On a lighter note, here is a comic romp that begins with two aging, ultra-rich commodity brokers making a bet that they can turn a privileged rich kid named Louis Winthorpe III (played by Dan Aykroyd) into a common criminal, and reinvent a two-bit street hustler named Billy Ray Valentine (played by Eddie Murphy) as a successful businessman. The old guys conspire to have Louis and Billy trade places in life. It’s interesting and funny to see the different ways the two young men deal with their new financial circumstances. Message wise, the movie shares something with The Shawshank Redemption in that it addresses the issue of coping with life’s uncertainties. It also shares Wall Street’s lesson concerning self-interest, but with a positive twist. Trading Places promotes the idea that it’s only right to look after and think about your own finances, just don’t do so at the expense of others, or for that matter, at your own expense.

• Jerry Maguire (1996). Here is another movie that will leave you with a smile by the time the final credits start rolling. Based on a real-life character, this is a dramatic but uplifting film about high-powered American sports agent Jerry Maguire (played by Tom Cruise). As the story unfolds, Jerry is on the rebound in his career and faces some big obstacles in a cutthroat business. In the process of overcoming those obstacles, Jerry learns to value people above money. His trials teach him to respect himself, to care for others and to understand the value of good business ethics. In a nutshell, the message here is that there is more to life than money. Additionally, Jerry shows us that we grow in spirit and positive self-awareness when we realize the true value of our abilities.

• Glengarry Glen Ross (1992). Now, back to a solemn note. The movie Glengarry Glen Ross is based on a celebrated play written by David Mamet, whose ear for dialogue and insight into today’s social and economic realities make for high drama. Or perhaps excruciating drama is a better way to put it, particularly as we watch one of the film’s main characters, Shelley Levene (played brilliantly by Jack Lemmon), come unglued. He is amongst a group of dishonest salesmen competing for business in a dingy real estate office where a dog-eat-dog ethos prevails, and where heart-breaking tragedy is the real end product. Desperation is the operative word here and it’s the main reason I’m mentioning this movie. As a cautionary tale, Glengarry Glen Ross amply illustrates the folly of acting foolishly out of desperation in difficult financial circumstances. Indeed, the message we always promote at Credit Canada is that, regardless of how desperate your financial situation seems to be, there is always hope. It just comes down to keeping a level head, educating yourself and perhaps reaching out to honest people with the financial know-how to give you a hand, like our counsellors at Credit Canada.

So that’s my list about movies concerning money. Of course, there are many other films whose storylines have something to tell us about money – everything from the classic Citizen Kane, to The Godfather series. But my blog space is limited. And besides, film reviewing is not my forte.

In closing, let me just say that if anyone out there is wondering why I didn’t include on the movie list It’s a Wonderful Life – possibly the most famous film ever about money problems and debt – it’s because I already reviewed it at length in my 2009 Christmas blog installment, which is available for reading in my Archive section (just search the column that you see to the right). Look for the installment dated December 2009.
 
You know, it just isn’t Christmas until George Bailey (Jimmy Stewart) discovers that a person’s true wealth is measured by the love and support of family and friends.

And that, dear film fans, surely is the ultimate money lesson.

Words to the wise on personal money management.

To everyone out there who is anxious about money and credit, let me say this: invest in a little knowledge and you will be surprised by how quickly you can leave your worries behind.

A first big step in this process is to do a little reading – or a lot of reading, as the case may be. There are plenty of great books you can buy to help you on the road to sound personal money management. Here, largely from a Canadian perspective, I provide an overview of just a few books of interest, not necessarily in order of importance.

• Findepedendence Day. By Jonathan Chevreau. Publisher: Power Publishers.

One of the best books you will find about financial self help is Findependence Day by Jonathan Chevreau, who writes for Canada’s Financial Post. It’s a beautifully written work that combines fiction with fact, resulting in a terrific story that educates even as it entertains. Here is a tale about a couple who are trying to dig themselves out of a financial hole. The story is about how they do it, with a lifetime of common sense lessons thrown in about how to smartly manage, save and invest money. I cannot recommend this book highly enough.

• Money 101: Every Canadian’s Guide to Personal Finance. By Ellen Roseman. Publisher: Wiley.

If you’re interested in a crash course about financial basics filled with easy-to understand advice on a wide range of topics, this book offers rich rewards. Author Ellen Roseman – one of Canada’s most trusted personal finance columnists – imparts wisdom on spending less and saving more, managing a budget, negotiating mortgages and car leases, getting the insurance you need, saving for your children’s education and your own retirement, and much more, including how to invest money when you’re getting ahead.

• To Have and to Hold: The Smart Woman’s Guide to Money and Marriage. By Kathleen Aldridge and Nancy Jane Bullis. Publisher: McGraw-Hill Ryerson.

I caution readers that the title of this book is misleading because the advice it offers applies equally to women and men. In fact, for any Canadian family or individual, it’s as fine a resource for money management as you’re likely to find. Authors Kathleen Aldridge and Nancy Jane Bullis cover financial planning with lots of specifics – everything from tax law, health costs, wills, and pre-marriage contracts – to estates, trusts, divorce and children. The writing does not talk down to readers as though they are know-nothings. It presumes you are bright and informed.
 
• The Complete Idiot’s Guide to Personal Finance for Canadians. By Lori M. Bamber Publisher: Prentice Hall.

Okay, we’ve all seen these Idiot’s Guides covering just about any subject you can imagine. I’ve never been too fond of these book titles, but the guides do have much to offer as they are written by some very knowledgeable people, including Lori M. Bamber, author of this particular Idiot’s installment. It’s a practical guide to personal finance covering the traditional subjects of saving, investing, mutual funds, retirement and insurance. It’s a friendly read – largely easy to get through, though in one section there is detail on venture capital funds, stock-indexed guaranteed investment certificates, and RRSP over-contributions.

• One Year to an Organized Financial Life. By Regina Leeds. Publisher: Lifelong Books.

One thing we stress at Credit Canada to those who come to us with debt problems – money is probably not the real source of the problem – the real trouble is the lack of mindfulness many bring to money. Do you give it focus and respect? Writer Regina Leeds gets to the heart of the matter through a book premised on the notion that organization is the key to success in life – from how you keep your household to how you manage your bank account. Here she addresses finances through week-by-week guidelines based on simple organizing principles. She reminds us that peace of mind has a lot to do with getting your ducks in a row.

• The Wealthy Barber. By David Chilton. Publisher: Stoddart.

Though The Wealthy Barber was originally published in 1989, I have included it in this list simply because it is a publishing phenomenon, selling millions of copies in North America. In any event, the book has been updated over time and the advice it offers is timeless. It’s an engaging book, highlighting fictional conversations between financial hero Roy Miller and his barbershop patrons. As you listen in, you learn that sound personal financial planning is not only relatively simple, it can be fun. You won’t find intimidating charts, graphs and lifeless numbers here, just lively talk that gives you the goods.

So that’s a personal money management book list for you. As I say, it’s just a start as books about this subject are plentiful. Other good reading is available right here at CreditCanada.com. Meanwhile, please keep in mind that prices vary on the books I’ve listed. Your best bet is to simply Google the titles and authors to check out the best price options from different distributors.

Happy reading.

I know there is always a lot of hype about investing, especially today. Where to invest, how to invest – I find it daunting myself. But I am reminded of what Warren Buffett, the most successful investor in history, once said:

“I don’t look to jump over seven-foot bars; I look around for one-foot bars that I can step over.”

There is one thing you can be sure of about investing, before you look for opportunities- – get rid of your debt. I don’t think there is better advice than that. It’s based on some 43 years of experience we have at Credit Canada, www.creditcanada.com, where we provide counselling and comfort to those who are struggling with debt and trying to manage their money intelligently.

.

Now, I am not talking about mortgage debt. Let’s face it that is usually a long-term process. I am talking about high interest debt such as credit cards. If you have covered off your credit card debt, then I believe it could be a good idea to invest. But investments are often risky, and if you can’t afford to lose, you can’t afford to play the game. Put it this way, you can’t afford to take on risky investments anyway.

So if you are ready to play, you need to learn the rules.

Rule #1:  Understand the basics. This means knowing the terminology, knowing the pros and cons and knowing the degree to which you can smartly invest – otherwise known as your risk tolerance.

Rule #2:  Get yourself a financial planner you are comfortable with. This means shopping around. You want someone you are comfortable with so that when you ask what you think could be a potentially stupid question, you do not feel embarrassed. Don’t be shy about asking any question, it is your money.  If you are looking for a financial planner, check out the Financial Planners Standards Council www.fpsccanada.org .

Rule #3:  Be patient. This is hard for all of us, me included. But again, we might look to Warren Buffett for some wisdom; investing is a long game and you need to go through the ups and downs of the markets and hang in for the long haul.

The most important thing to remember is to educate yourself, and not be afraid to learn everything you can from your financial planner. No question is too dumb.

Lately in the news, we’ve all been hearing we are in an economic crisis.  People I talk to at Credit Canada and out and about often say, ”My job is stable; I won’t be affected by a recession.” or “I don’t have money in the stock market; I am safe.”  On the surface this may seem like a valid response to these uncertain times .  Here’s the problem as I see it…a recession is insidious and can affect people in ways that they have not even thought about.  Put it this way, we can all be held hostage by a recession. How, you ask?  Well let’s look at this scenario. You have a job, you are secure and you know that your job is stable and recession-proof. Fine.  However, you decide that you really want to move out of your neighbourhood and put your house on the market. Problem is those individuals who have been affected by the recession may also have their house on the market in your  neigbourhood and they are desperate to sell and there are no buyers; because in a recession people hold back, banks tighten their lending practices and houses sit on the market for months.  Of course, with that goes a drop in housing prices and therein lies the problem. Suddenly that house that you thought was worth $400,000 is no longer worth $400,000 especially when a similar house down the road is on the market for $350,000 and it is not selling.  

Let’s take a different scenario - you have a stable ‘recession-proof job’, you are just starting out, don’t have much saved but want to get into the housing market.  You find a few perfect houses but low and behold cannot get financing because banks have tightened their lending belts due to the recession and consider you ‘too new’ in your job with little assets.   Suddenly the recession has affected you too.  It goes further than this, as creditors take losses due to debts not being paid, interest rates can creep up, lending practices as I have already stated tighten, and the small business owner with a store around the corner from where you live shuts down as he can no longer borrow to keep his business going…and it goes on and on. 

I don’t believe it’s all doom and gloom though. My point of view is that there is a silver lining.  Those set up with good conditions to buy a home, stable job and decent down payment can really get a deal on a house during uncertain times, as can those investing in the stock market when it is low.   Still one is “playing” the market to a certain extent. No one will really know when houses and the stock market will hit rock bottom.  For example, in the late 80’s there  was a fever in some parts of Canada to get into the housing market before it was no longer affordable. People took out mortgages they could not afford and put everything into buying a home. In the early 90’s when the recession hit, these same homes decreased in value by as much as 25%.  As a result, people often lost more than their home and were facing bankruptcy.  The question then as it is now…when will the decline stop and when will be the best time to buy?  Your thoughts?