5 Hollywood Movies That Teach Financial Lessons Like No One Can Picked By Mao
Hollywood and teaching financial lessons seem like they don't belong in one sentence, but according to Mao Lal, they do. Hollywood producers have realized that movies are a great way to teach financial lessons, and have found ways to include the art of financial management in films subtly.
Mao is an entrepreneur and investor who has invested in cryptocurrency and precious metals. He is the founder of the cryptocurrencies exchange Coinygram LTD and is one of the most successful and well-known entrepreneurs in blockchain technology. A firm believer in getting financial lessons from all aspects of our lives, he has a list of movies that he believes give financial lessons better than most people can.
This 1987 classic changed an entire generation's view towards investing. In the film, Gordon Gekko, a ruthless financier, teaches his protégé, Bud Fox, that the one secret to becoming rich is to understand that money never sleeps; therefore, you should always make your money work for you at all times. It also shows the dangers of insider trading, as Fox is willing to do anything to get on Gekko's team, including gathering insider information on stocks. This leads to Fox's betrayal of his father, and his later arrest and turning on Gekko to reduce his sentence.
The movie is still popular among analysts, traders, brokers, and bankers three decades later after it was released.
Confessions of a Shopaholic
This film follows the life of Rebecca Bloomwood, a shopping addict who gets herself into a financial mess due to the addiction. Her obsession with shopping lands her in massive credit card debt while being chased by a debt collector. It takes us through her journey, from hitting rock bottom to self-realization and overcoming the addiction.
The movie teaches the audience about shopping responsibly, the careful use of credit cards to avoid unnecessary debt.
The Money Pit
The 1986 movie shows a couple's experience of buying a home. They purchase the house in a hurry without properly checking it out, only to realize much later that it was in terrible condition and required lots of renovation. Their impulsive purchase leads to unnecessary expenses as they renovate the house to livable conditions.
The movie teaches any investor to do all the necessary due diligence and thoroughly check all aspects of an investment, whether is it property or a fund, before making the purchase. There is no place for emotional decision-making when it comes to big purchases.
The movie shows the heinous underbelly of the financial world – the pump and dump firms. Seth Davis gets a job at a stock brokerage firm that he later realizes is a pump and dump firm. The main lesson from the movie is that as an investor in the stock market, you should always use reputable and transparent firms with a solid foundation to avoid losing all your money.
The Big Short
This biographical comedy-drama movie is perfect for anyone who wants to understand the 2007-2008 financial crisis. The movie shows how the it was triggered by the crashing of the United States housing market. The film also features Richard Thaler, an economist who explains financial concepts such as collateralized debt obligations and subprime mortgages to the audience.
These movies give an insight into the world of finance and are a must-see for anyone interested in the financial field.