Financial Tips From Frozen

Kids watching Frozen.

Hopefully they learned as much as we did from watching this.

Financial literacy is a huge topic right now, and rightly so. Proper financial management is considered a weakness for many Americans. Our hope at OVB, is that we can give you some thought provoking, and sometimes entertaining tips that will help you better manage your finances.

What better way to learn about financial literacy, than through tips gleaned from the wildly popular Disney movie, Frozen?

Before we go on, I should warn you that for the one percent of you who haven’t seen Frozen yet, there will be spoilers. If you don’t want a major plot point being spoiled for you, don’t continue on.

We’ll start with the easy one that’s pretty much spelled out by the characters in the movie.

Supply and Demand

When Kristoff goes into Wandering Oaken’s Trading Post during the “Big Summer Blowout” looking for winter supplies, he discovers that “supply and demand have a big problem.” The supply of winter gear is low, which results in the price he has to pay being much higher than expected.

The most glaring example of this in the real world is with mobile phones. When that brand new iPhone comes out, demand is very high and so is the price. If you can stand not having the newest, shiniest technology, waiting a year will allow you to buy the same phone at a greatly reduced price.

Set up an emergency fund

What caused the supply and demand problem in the previous section? That would be Elsa and her ice powers. Kristoff sells ice for a living, “a rough business to be in right now” for sure. If he had an emergency fund, he’d be able to live comfortably during this time of unexpected hardship.

Most experts recommend saving three to six months’ worth of income for your emergency fund. This fund can be used when unexpected things happen, such as losing a job, incurring unexpected expenses or your queen losing control of her ice powers and thrusting the land into an eternal winter, which happens more often than one would think.

Insurance

Kristoff’s sled went plummeting down into a ravine, eventually bursting into flames, Kristoff just might have been thinking, “Man, I wish I bought insurance on that thing.” Thanks to the eventual generosity of the royal family, Kristoff was able to replace his sled with an even fancier model, but we can’t all rely on that kind of thing.

Insurance is just in case protection. In other words, you are at least somewhat protected, just in case something bad happens. Some types of insurance are required, but some aren’t. For some people, insurance is completely unnecessary…until it isn’t. You can’t count on things always working out in your favor. When something does eventually go wrong, it’s good to know that your home, car and family will be protected.

Too good to be true

Lastly, if something seems too good to be true, it probably is. When Anna met Hans, fell in love at first sight and got engaged to someone she knew for ONE DAY, it seemed like a fairy tale come true. It was a fairy tale alright, but it wasn’t real. Hans eventually showed his true colors and turned on Anna.

Just like in the movie, there are a lot of disgusting people out there that will do whatever they can to take advantage of others. They will promise money, gifts and even their love in order to get what they want, which is usually money. My advice is to have a somewhat skeptical eye when communicating on the internet with someone you don’t know. If someone else initiates the conversation (through phone, email or social media) be very cautious about what information you give them.

Did any financial tips jump out at you when watching Frozen? If so, leave them in the comments below.

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.

Read more of this post