5 Luminous Lessons Harry Potter Taught Us About Money

The magical story of a young wizard named Harry Potter has captured the hearts of fans of all ages and with a good reason. In fact, I am wearing my Hufflepuff shirt while I am writing this.

Despite being in a fictional world, the Harry Potter characters’ financial problems cannot be solved with a wave of a wand. They also have to struggle with the challenges of saving, spending, and growing money throughout the series. Here are just some of the personal finance lessons that you can learn form the wizarding world of Harry Potter:

GET THE A DEPENDABLE AUTO-INSURANCE

In the “Harry Potter and the Chamber of Secrets” book, Ron and Harry crashed a car into a tree. It caused an irreparable damage to a car that they do not own. This scenario taught us the importance of having a car insurance.

In Singapore, it is mandatory to have your car insured. Examine your options and look for an auto-insurance that suits your needs and your budget. Some of the plans that you may consider are the FWD, Aviva, and NTUC Income auto-insurance plans. FWD has three auto-insurance plans from Classic to Prestige. Its annual premiums start from S$731.38. Aviva offers three auto-insurance plans too from Lite to Prestige. Its annual premiums start from S$883.12. Lastly, NTUC Income has Drivo Classic and Premium plans. Its annual premiums start from S$$970.35. Annual premiums are usually based on the driver’s profile and the car itself.

SORT OUT YOUR WILL

After living in an uncomfortable cupboard under the stairs for eleven years, the book’s main protagonist Harry Potter found out that he was a wizard and that his parents left him a considerable amount of money. His family’s wealth was beyond what he can imagine! Although his parents died at a very young age, when he was just a baby, it was clear that they a robust financial plan in place. They left all their wealth to Harry. This helped him secure his school supplies and daily needs throughout the years.

Unforeseen events can strike at any moment. It is important to save up for your retirement as soon as possible. Moreover, you must create a will that ensures the list of beneficiaries on all of your savings and investment accounts.

SEE THE POWER OF COMPOUND INTEREST

Harry not only benefits from his parents’ wealth, but also reap the rewards of compound interest. His money was untouched for eleven years. When he opened his vault for the first time at the Gringotts Wizarding Bank, he discovered the amount of gold and money that was in his vault. Despite having this wealth, he did not lead a lavish lifestyle.

Like Harry, you may benefit from compound interest by leaving your money untouched for years in a bank or by investing your money for the long haul.

APPRECIATE WHAT YOU HAVE

As I said above, he did not lead a lavish lifestyle. Harry was humble. In fact, he wore the same glasses for seven years. He appreciates what he has and exemplifies this trait the most in the first book. When Hagrid gifts him Hedwig the owl, he was amazed and accepted it wholeheartedly. He was also very grateful when he was gifted the Nimbus 2000 by Professor McGonagall.

In our world, it is easy to be caught by all the sale items and designer brands. However, you must remember to strike a balance between your needs and wants. Appreciate what you have and live within a realistic budget that you set.

SECURE YOUR MONEY IN A SAFE PLACE

Harry’s immense fortune was stored in the Gringotts Wizarding Bank, located in the heart of London. The bank is operated and guarded by goblins. These goblins serve as the gatekeepers to the underground vaults. It is often described as the safest place in the Wizarding World.

Image Credits: unsplash.com

While you cannot keep your wealth within the protection of magical spells and goblins, you can secure your money in other ways. Firstly, you may set up an auto-deposit scheme to send a portion of each paycheck to your savings account. Secondly, you may store your emergency fund in a place where you will not be tempted to spend it frivolously. For instance, you may set up a different account exclusively for that. Lastly, secure your online banking apps through Two-Factor Authentication.

Sources: 1, 2, & 3

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Bear & Bull Markets: Animals In The Stock Market

For investors, the terms “bull” and “bear” carry distinct weights as they frequently describe the market conditions. These terms are used to describe how the market is doing. It is your responsibility as an investor to know the direction of the stock market, because it will significantly affect your portfolio. Examine how each of these market conditions may impact your investments.

INVESTORS’ ATTITUDES AND THE MARKET

Since the financial markets are greatly influenced by the investors’ attitudes, these terms also denote how they feel about the current economic situations. A bear market occurs in an economy that is receding and where most stocks are depreciating in value. Interestingly, it is named for the way the bear attacks its victims. You see, a bear swipes downward during an attack. Thus, it became a metaphor for the market activity during this condition.

On the other hand, a bull market exists in an economy on the rise. This is where conditions of the economy are generally favorable and positive. Investors usually have faith that the uptrend will continue over a long period of time during the bull market condition. In the case of equity, a bull market denotes a rise in the prices of companies’ shares.

In a bear market, share prices are continuously dropping. This affects the investors’ attitudes negatively, which later perpetuates the downward spiral. During this time, the economy slows down and unemployment rises as companies begin laying off workers. One can only imagine how the investors felt last March 2020 when the U.S. stock market fell into the bear market due to the pandemic!

SUPPLY AND DEMAND FOR SECURITIES

More investors are looking to sell than to buy in a bear market. The demand for securities is significantly lower than the supply. As a result, share prices drop. A bear market can be more dangerous to invest in, because many equities lose value and price.

In contrast, there is a strong demand and weak supply for securities in a bull market. Many investors wish to buy securities, but only few people are willing to sell them in a bull market. As a result, share prices will rise and investors compete to obtain available equity.

SHIFT IN ECONOMIC ACTIVITY

A weak economy is often associated with the bear market. Most businesses and companies are unable to bring in huge profits due to the unwillingness of consumers to spend money. This decline in profits directly affects the way the market values stocks.

In a bull market, the opposite happens. People have more money to spend and are very much willing to spend it. This relationship towards the consumers strengthens the economy.

Image Credits: unsplash.com

THE CONCLUSION

A bear market occurs in an economy that is receding, where more stocks are depreciating in value. While, a bull market exists when the economy is sound. Both of these conditions will have a significant influence on your investments. It is a good idea to determine how the market is doing when making an investment decision.

How long a bear market will last varies wildly due to the situation. Some can last for several weeks, while others last for years. Over the long run, the stock market always has a positive return. A grand comeback, which we all have been waiting for!

Sources: 1 & 2

 

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Important Things To Know About The TraceTogether Token

TraceTogether is a digital system, which the Singaporean Government had implemented to allow for better contact tracing in response to the effects of the pandemic in the country. The system was originally designed as an app and was later supplemented by a physical token due to the low-usage of the TraceTogether app.

October 26 (Monday) marked the start of the mandatory use of TraceTogether app or token at all Singapore cinemas. Venues with activities that involve larger groups of people will follow the same mandate. By the end of December, checking-in with the TraceTogether app or token will be compulsory in public venues such as restaurants, workplaces, schools, cinemas, hotels, healthcare facilities, and shopping malls.

This means that you will no longer be able to gain access to these places through the SingPass mobile app or by scanning SafeEntry QR codes with your phone’s camera. Instead, you can either use the TraceTogether app or token. The former includes a function for users to scan SafeEntry QR codes that are displayed at venues. The latter comes with a QR code that can be scanned for entry. Please do not cover the QR code attached to your token.

In the recent days, Singapore has hit about 50% participation rate in its digital COVID-19 contact tracing program. This is good news because having 70% of Singapore’s population using TraceTogether is one of the conditions that has to be met for Singapore to enter phase three. This is according to Education Minister Lawrence Wong, co-chair of the COVID-19 task force.

Before you collect your token at the community centre (CC), please check token.gowhere.gov.sg to know its availability. To prevent long queues from forming, members of the public have been encouraged to collect their TraceTogether tokens from the CC nearest to where they live. There is no need to collect a physical token, if you already have the TraceTogether app. You may download the latest version of the app at tracetogether.gov.sg.

Minister-in-charge of the Smart Nation initiative Vivian Balakrishnan also highlighted that there will be more than enough TraceTogether tokens for everyone. These tokens can be collected at thirty-eight CCs around the country. It will be made available at all 108 CCs by the end of November.

Once you receive your token, check its light. The green light blinks, if your token is working. It should blink once every minute. Its battery lasts for six months and is not rechargeable. You may “dress-up” your token by putting your old first-generation AirPods case. It will fit nicely on that.

Image Credits: Putri Shaghira via Facebook

Lastly, the data stored in your token will be automatically deleted after twenty-five days. There will be room for more information.

Sources: 1, 2, & 3

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Fun & Inexpensive Halloween Crafts For Kids

One of the events that children look forward to every year is Halloween. It is possible to stir up a spooktacular Halloween celebration while maintaining an inexpensive budget. Simply use the art materials and common craft supplies that are readily available in your home.

Create these projects with your children to see for yourself!

THEME: UNDER THE SEA

There are two types of activities that you can do to with little preparations. You can either do the Water Balloon Pop or the Jellyfish Paper Craft. The former is a messy activity, which is best played outdoors. Gather twelve vivid balloons corresponding to three colored papers. Cut several circles out of your colored papers. The colored papers must match the color of the balloons. Then, fill up the balloon with water. Stick the papers on the wall. The objective of this game is to pop the balloon directly to its corresponding target. The person with the most accurate throws will win.

For the latter, you must gather yarns or strings, markers, paper plates, and paint. Cut a paper plate in half to create the dome-shaped head of the jellyfish. Staple holes on the bottom of the plate and attach the yarns or strings. Paint the paper plate to complete this lovely sea creature.

THEME: MONSTER SMASH

For a monster-themed Halloween, you may start by building your own monster out of modelling clay. Attach art materials such as moving eyes and fuzzy wires to your sculpted monster to complete its look. You may also create monsters using popsicle sticks. Attach five to seven sticks together to form a vertical file. Paint on the sticks and add refinement of details by using markers. Let your creativity shine through!

Image Credits: iheartartsncrafts.com

Secondly, you may use a green and a black paint to create your own Frankenstein handprint. Half of your child’s hand will be painted black (i.e., Frankenstein’s hair) and half will be painted green (i.e., Frankenstein’s head). Press your hand on a paper and let the paint dry. Finish the craft by drawing details on your hand print such as its signature screws.

Image Credits: rd.com

THEME: THE MUMMY RETURNS

If you want to embrace the “Mummy” as your spooky theme, you may use two rolls of tissue paper to create a mummy race. Let your children use one roll of tissue paper to wrap you and your spouse. The person who wraps the mummy the fastest will win. You may also encourage them to decorate the mummy afterwards by using washable markers and non-toxic paint.

THEME: SPIDER HUNT

If your child is fond of spiders and Spiderman, fill up the room with spider décor. You may create a spider Halloween wreath or a spider sticks web. For the Spider Halloween wreath, all you have to do is to gather twigs that have fallen from the tree. Glue these twigs onto a piece of cardboard to create a base for your wreath. Embellish the wreath with some cut-out spiders.

Image Credits: buggyandbuddy.com

For the spider sticks web, you will need scissors, yarn, paint, glue, and popsicle sticks. Stick the popsicle sticks together to create this shape: *. Then, paint it white and add some black or orange yarns. This will enable you to tie the craft to your doors or ceilings. You may add some cut-out or toy spiders to increase its effect.

THEME: BOO – THE FRIENDLY GHOST

You can either put ghosts on your candy paper bags or your Halloween cards. Start by purchasing white paint and brown paper bags. Turn your ordinary paper bag into a glowing ghost bag by painting on it. You may put the candies inside once you are done.

The last craft is quick and easy. Cover your child’s feet using white paint. Let your child press it on a colored paper. Once it is dry, you may decorate your very own ghost. Enjoy!

Sources: 1 & 2

 

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