7 Hollywood movies that taught us financial management

Throughout our lives, we have seen many movies that have not only left an everlasting impression on us but have also given us valuable advice on a lot of matters. The same holds good for finance too, which, in all its glory, is full of everything that a great movie needs - drama, comedy, love, calamity, extravagance and a great deal of brilliance. Hollywood was quick to realise this and has made many movies over the years that have subtly taught us the art of financial management.

If you are thinking of working in the field (or are already a part of it), then these movies are for you. They may very well give you the financial edge and insight to help you progress in your career.
 

The Big Short
 

All of us are familiar with the 2007 housing market crash, the ripples of which were felt worldwide. It started with the instability in the United States housing market owing to the approval of high-risk home loans by subprime lenders. Not many saw it coming, but those who did, they prepared themselves, invested smartly and made a great profit.

The movie follows the oddball, hedge fund manager Michael Burry who, in 2005, realises that the market is set to crash by the Second Quarter of 2007. He then goes about betting more than $1 billion against the market, angering his clients and investors in the process. After the crash, however, he ends up making a profit of roughly $2.5 billion.

If you have ever wanted to understand how exactly the crash occurred, this is the movie you need to see. It brilliantly explains technical terms like mortgage-backed securities and collateral debt obligations, in a way so interesting that is bound to keep the viewers engaged.
 

Confessions of a Shopaholic
 

The movie revolves around Rebecca Bloomwood (played by Isla Fisher)who is a shopping addict. It takes us through her journey of hitting rock bottom, self-realisation and overcoming her addiction. 

The movie teaches us about shopping responsibly and not to use credit cards recklessly. Moreover, it is never too late to seek help, especially when you are in a serious problem. As seen in the movie, the protagonist lands herself in a sizable debt that severely affects her life.

If you are one of those people who likes to swipe their credit cards without thinking twice, then watching this movie may change your outlook towards shopping. Nonetheless, it’s an entertaining movie.
 

Boiler Room
 

On one hand, we have movies like The Big Short that are set in the backdrop of a glamorous corporate world where everyone is dressed handsomely and has a fancy title. On the other hand, there are movies like Boiler Room that deal with the heinous underbelly of the financial ladder - the pump and dump schemes. 

Even though the movie is not based on a true story, the pump and dump firms are a harsh reality in this world. Whether you are a novice in the world of the stock market or are already an expert in the field, let this movie serve as a warning to you to only invest in companies that have a solid foundation. Oh, and remember - if something is too good to be true, then it probably is.
 

The Wolf of Wall Street

The Wolf of Wall Street is undoubtedly one of Martin Scorsese’s best works. Just like the Boiler Room, this one is based on the pump and dump schemes too. However, it is based on a true story (with a little bit of zest added for dramatic effects).

Leonardo DiCaprio takes us through the life of the famous scam artist and stockbroker, Jordan Belfort, who in the course of his career made millions of dollars on the back of raging corruption and fraud. Jonah Hill did an outstanding job in the supporting role and is easily one of his best performances.

The movie also teaches us one important lesson - quit while you're ahead. Oh, and let’s not forget being financially responsible and making decisions pragmatically.
 

American Psycho
 

Yes, granted that American Psycho offers absolutely no advice related to finance, but it does offer an interesting perspective into the world of elites, belonging to the top of the financial ladder.

Christian Bale plays the part of Patrick Bateman, a wealthy investment banker with a dark alter ego. The movie superbly balances itself between Bateman acting out his twisted, decadent fantasies and the sheer detachment that the rich folks have with themselves and the reality. It also makes you wonder if working at such positions will take a psychological toll on you.
 

The Pursuit of Happyness
 

This movie teaches us how to deal with financial hurdles in life, without giving up in the face of adversities. The movie tells the real-life story of Chris Gardner, who battled homelessness and went through severe hardships in life, all while raising his son. Eventually, he moved on to form a multi-million dollar stock brokerage firm.

Will Smith plays the role of Gardner and gracefully reminds the audience that regardless of how dire the situation may seem, you will make it as long as you don’t give up. And he does this elegantly, without letting the people around him realise that he is in financial hardship.
 

Wall Street
 

How can it be that we are talking about movies related to finance and Wall Street misses the cut? This Oliver Stone masterpiece inspired a generation of stockbrokers, bankers, and analysts and it continues to do so even today. The character of Gordon Gekko gave a brilliant speech where he said that greed is good and it is without a doubt, one of the most memorable lines ever said in a movie.

The movie also warns us about the pitfalls of insider trading, but the sheer brilliance of Charlie Sheen and Michael Douglas’s acting makes us want to encourage our greedy side too.

These movies are a must watch for anyone who is intrigued by the world of finance. But remember, these movies are a work of fiction and trying to enact them in real life may craft a tale more surreal than any Hollywood movie.