Six Financial Lessons from Children’s Movies

Article originally published on April 10, 2017, and updated on May 3, 2023

In the 1988 film “Big,” Tom Hanks’ character, a tween temporarily embodied in his 30-year-old self, is elated when he receives his first adult paycheck. He immediately goes to the bank and cashes the $187 in full, indulging in nonessentials like silly string, junk food and amusement park rides.

Despite its far-fetched premise, this caricature of a financial juvenile residing in an adult body is an all-too-common reality. Children and teens who don’t learn budgeting basics may one day join the millions of Americans with minimal savings and massive credit card debt.

If talking with your kids about money is as alien as “E.T.” or as tangled as “Charlotte’s Web,” you are not alone. Nearly 62% percent of parents feel some reluctance in discussing financial matters with their kids, according to a T. Rowe Price “Parents, Kids and Money” survey released in April 2022.

Here are six financial lessons from well-known children’s movies that you can share with your kids.

Financial lesson for kids #1: Give them a different financial perspective by switching places.

Powerful financial insight can be gained from walking in another person’s shoes, as told and retold in both “Freaky Friday” and “The Parent Trap.” Absent a magic fortune cookie or an identical twin, you can still give your child a new perspective on finances by temporarily swapping roles. Let your children take a stab at the family budget using Monopoly money. Help them understand how funds must be allocated towards bills, groceries, and other financial needs each month.

Financial lesson for kids #2: "Everything is awesome when you're part of a team.”

Though “The Lego Movie” theme song is dripping with irony, it praises the value and importance of teamwork. You too can teach your child with full sincerity the value of financial teamwork. Bring your kids along on your next trip to the bank and show them how banking transactions work. Ask the branch manager to explain how the bank operates, the importance of saving money, and how money generates interest. Consider opening up a kids savings account if they don’t already have one. 

Financial lesson for kids #3: Know where you want to go by making financial goals.

In Disney’s “Alice in Wonderland,” Alice finds herself at a fork in the road, unsure which way to turn. When she asks the Cheshire cat which path to take, he tells Alice that since she doesn’t know where she is going, “then it really doesn’t matter” which way she goes.

When you know where you want to go financially and you know what your financial goals are, it’s easier to navigate financial decisions. Encourage your child to set and work toward short-term and long-term financial goals. Help them allot a portion of the money they earn through chores, receive as gifts, or get through an allowance toward their financial goals.

Financial lesson for kids #4: Let your kids plan and shop on a budget.

You don’t have to leave your children “Home Alone” to give them some financial autonomy. In Home Alone eight-year-old Kevin McCallister’s solo grocery store trip could be successfully recreated — orange juice coupon and all — with a little more adult supervision. Filling his cart with basics like milk, Wonder Bread, and laundry detergent, Kevin is able to eke under his $20 budget and even squeeze in a bag of plastic army men.

A great way to help teach financial responsibility to your kids is by giving your child a budget and a shopping list and see how they do with shopping on their own. Explain the benefits of comparison shopping, coupons and store brands. You could also involve kids in the financial side of planning for a family outing or vacation (assuming you don’t mistakenly leave them behind like the McCallisters did). Consider setting aside a fixed amount of money for things like snacks, concessions or souvenirs and letting children and teens decide how to spend the allotted funds.

Financial lesson for kids #5: Counter the "I want it now" syndrome.

Understanding the difference between financial needs and wants is the golden ticket to a successful financial future. In “Willy Wonka and the Chocolate Factory,” spoiled heiress Veruca Salt screams, “I want an Oompa Loompa now!” No sooner does her father pull out his checkbook than Veruca demands a squirrel and a golden egg-laying goose.

For many children like Veruca, “financial wants” carry a false but fading sense of urgency. Next time your child asks for something they don’t need, like a toy or electronic device, respond with a “not now.” If they still want the item later, you can help them set up a savings plan to work toward their financial goals. You can also take time to sit down with your children and explain the differences between wants and needs so that they have a better understanding of what they should prioritize when spending money and building budgets.

Financial lesson for kids #6: Feed the birds.

In the children’s classic movie Mary Poppins, buttoned-up junior bank officer George Banks faithfully teaches his children about the importance of compound interest and the benefits of established credit, but only Mary Poppins can help him see that there is more to life than money (like feeding birds and flying kites, for instance). Model healthy financial attitudes that include giving to charity and recognizing that money can’t buy happiness.

Movies are great for entertainment but can also provide valuable financial life lessons that both children and adults can learn from if you pay close attention. By teaching your kids about smart financial decisions, you are setting them up for a successful financial future.