More Financial Lessons We Can Learn From Star Wars

The Star Wars logo.

®Lucasfilm/Disney

Last year for Star Wars Day we discussed a few things that the franchise can teach us about finance. Well since there are three new movies on the horizon, we thought we’d revisit the topic and see what other pearls of wisdom we can learn from “a long time ago, in a galaxy far, far away”. So here are four more financial lessons we can learn from Star Wars…

  •  Keep An Eye on Your Finances/Credit Report. In Attack of the Cones we learn that Jedi Master Sifo-Dyas had ordered, and paid for, the production of a clone army on Kamino. This was done without the consent or knowledge of either the Jedi Council or the Galactic Senate, but it was done in their name! Imagine if Sifo-Dyas had defaulted or not paid in full? What would that have done to the Council’s credit score? Speaking of which, it’s important to check your credit report at least once a year. Thanks to the Fair and Accurate Transactions Act of 2003 (or FACTA), the federal government has made sure you can do this for free at AnnualCreditReport.com. The three major credit reporting agencies, Equifax, TransUnion, and Experian, can also provide you with credit reports but they do offer paid credit monitoring services as well so be mindful of what you’re signing up for. If the Jedi Council had checked theirs, maybe they would have seen the order of a clone army in their name and been able to stop the ensuing war before it ever happened.

 

  • Know Who You’re Doing Business With. Due diligence. That’s a term you hear lawyers bandy about frequently. They’re always going on about “doing their due diligence.” What does that mean? It means you have thoroughly investigated a party or subject before entering into a contract. This is very important. If you plan to go into business with anyone, or do business with another company you should make sure that you know who you are doing business with. Have they ever filed for bankruptcy? How do they make their money? What are the risks of dealing with this person or company? If the Galactic Senate had done their due diligence concerning the Trade Federation perhaps they would have discovered that they were being manipulated by a Sith Lord and the blockade of Naboo, and thus Palpatine’s entire rise to power, may never have happened.
Nute Gunray ©Lucasfilm/Disney

©Lucasfilm/Disney
“Do you really want to trust this guy with your money?”

  • Having Insurance Can Save Your Bacon. The Empire must have had insurance on the first Death Star, otherwise how did they come up with the funds to construct a second so quickly? If you find yourself in a jam and your car or house is damaged, automobile or homeowner’s insurance can come to the rescue. Paying your premiums now can save you a lot down the road when you need it the most. The Empire knew that. Now if they had just sprung for a vent to cover the exhaust port…
©Lucasfilm/Disney "Be on the lookout for Mayhem, like this moon-sized, fully-functioning, space station!"

©Lucasfilm/Disney
“I’m sure the deductible was pretty high though.”

  • Money Isn’t Everything. In The Phantom Menace, Qui Gon Jinn tries to use the Jedi Mind Trick on Watto to convince him to accept Galactic Credits (which Watto insists are no good in the Outer Rim) in exchange for the parts they need. Watto replies with “Mind tricks don’t work on me, only money.” We know that Watto’s species, Toydarians, are immune to mind tricks, but the implication is that he can be moved by money. Indeed it is Watto’s own love of money and gambling that leads him to wager Anakin Skywalker, his most-prized possession, on the outcome of a podrace. When we see Watto again in Attack of the Clones he appears forlorn and alone. As if in his old age he has finally come to realize that placing such importance on money and material things wasn’t the right path after all. This is a great lesson for all of us. Money is important. We need money to get by in the world today. Two of The Beatles’ most famous hits are “Can’t Buy Me Love” and “All You Need Is Love.” I think they might have been on to something…

 

Star Wars has been entertaining people of all ages for decades now, and seems to be in no position to stop doing so. I’m sure the new movies will have more nuggets of wisdom for us all to mine, but until then remember: The Force will be with you. Always.”

 

Has Star Wars taught you anything about money or personal finance? Share your thoughts in the comments below!

 

 

 

About HBKnight
I occupy my time by refusing to grow up and playing D&D.

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