5-financial-lessons-from-harry-potter

When looking for financial tips, I rarely look to fictional books, much less ones about witches and wizards. Yet, the "Harry Potter" series from author J.K. Rowling might be the exception. Though the series is more about good versus evil, than it is about sounds financial decisions there are still a few lessons to be learned. Here are 5 lessons I picked up from the series:

• You cannot always rely on your financial institutions: I cannot imagine Gringotts Bank is insured by the Magical Deposit Insurance Corporation since they, you know, had a dragon in the basement, but that goes to prove that even the most secure institutions can be breached. In the real world, this can happen literally, or in the sense of a banking collapse, metaphorically.

• Inherited wealth doesn't benefit society: The Malfoy family might be known as "old money" in our world. Instead of doing something that contributes to society, Lucius Malfoy simply buys his way in. His wealth allows him to purchase status, rather than obtain it by merit, a trait sure to be passed on to his son, Draco.

• Look to friends and family for small business financing: The Weasely twins, Fred and George, had dreamed of starting their own joke shop, but lacked the required funds. When Harry loans them his Tri-Wizard earning, their dreams are realized. Without his loan, they never would have had the opportunity. Plus, I doubt Harry Potter charges as much interest as Gringotts, or Bank of America for that matter.

• Proper market research can make a business: The Weasely twins spent endless hours in school testing their products on their peers and potential customers. While Hermione Granger may have called the time spent a waste, I think the Weasely twins may beg to differ. Their research turned their ideas into profit almost overnight.

• No marketing tool is better than word of mouth advertising: Olivander had a reputation for being the best wandmaker in all the land, so naturally witches and wizards seeking their first wand purchased one from Olivander. It was the word of mouth advertising he received that drove his business, and, of course, the exceptional wands.

The "Harry Potter" series may not be regarded as an authoritative source for financial information, but hopefully these tips can help you hang on to a few more knuts and sickles.