Advertisement:
Category: Money Date: 12/2/2011
Bah humbug!
Say what you like about Scrooge, but when it comes to acquiring and protecting wealth, he's one shrewd cookie!
Putting aside the not so good parts of Scrooge's character (values money more than fellow human beings, etc.), there are some valid money lessons in A Christmas Carol that we all should sit up and take note of.
We read that Scrooge is "beguiled the rest of the evening with his banker's-book".
A Christmas Carol is set well before the time of online banking, and maybe being beguiled by your savings all night long is a bit excessive – even by 19th century standards! However, keeping a watchful eye on your bank account and savings/investments is important.
But if you get to the stage when you're beguiled all night by your finances – it's time to admit you've got a problem!
"What's Christmas time to you but a time for paying bills without money; a time for finding yourself a year older, but not an hour richer."
Borrowing to spread the cost of Christmas might seem a good idea, but make sure your debt hangover doesn't last until Christmas 2012! Ideally you should try to save in the months leading up to Christmas – you could even start planning now, setting up a standing order to pay a set amount every month into a top paying savings account for next year's festivities.
If you have to borrow, borrow smart. Use the cheapest form of credit you have, such as a 0% spending credit card. Set a budget limit that you can repay easily in the New Year (see our Christmas borrowing tips for more information).
Ebenezer has pretty strong views on marriage – mainly due (as you might imagine) to financial considerations. Here's an exchange between Scrooge and his nephew.
"'Why did you get married?' said Scrooge. 'Because I fell in love.' 'Because you fell in love!' growled Scrooge, as if that were the only one thing in the world more ridiculous than a merry Christmas."
While we're not saying don't get married, it's useful to take your finances into account also. Love is blind as they say, but knowing your partner's finances and taking proper consideration of what might happen in the event of death or incapacity is an important part of the financial planning process.
The Cratchit family are living on the breadline for sure. But even if Bob could spare as little as £6 per month (in today's money) from his meagre wage to pay for life insurance, the value to his family could be immeasurable.
You see the Cratchit family, like many young families, are trying to make ends meet on a single income. If that income was lost, the consequences could be catastrophic.
And sadly, it's normally the families that can least afford income protection or life insurance that have the most need of it.
By the end of A Christmas Carol a reformed (and far less interesting!) Scrooge gives Bob Cratchit a pay rise. We can only hope that had Dickens ever written a sequel that Bob would have used his extra income to protect his family with insurance…
Compare savings accounts Compare bank accounts Compare 0% spending credit cards Compare life insurance Compare income protection
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at anytime.