- In the classic Christmas movie “Home Alone,” a family unwittingly leaves their 8-year-old son behind when they depart on a trip abroad.
- Viewers often focus on the fortune of the fictional McCallister family depicted in the film.
- Financial experts share their insights on the family’s current net worth and suggest improvements for bolstering their financial security.
The movie recounts the unlikely story of a family who boards a flight without their 8-year-old son and forgets him in the process.
Was the fictional family known as the McCallisters featured in the movie?
.
“Codewise, the McCallisters have a stable financial foundation,” said Cody Garrett, a certified financial planner and founder of Measure Twice Financial in Houston.
However, the family may not be as affluent as their outward appearance suggests, according to Garrett.
To gain a better understanding of the McCallister family’s financial situation, Garrett conducted an in-depth examination of their finances in the movies “Home Alone” and “Home Alone 2: Lost in New York”, released towards the end of 1992, and facilitated a webinar with approximately 25 financial experts to explore financial planning opportunities that emerge in the films.
Although the movies were made before it was trendy to show off one’s wealth on social media, the lifestyle the McCallister family portrays might not necessarily be a reflection of their actual financial status, according to Garrett.
What’s apparent to the public is that they’re lavishly spending a lot of money, almost to the point of flaunting it. However, behind closed doors, it’s entirely possible they may harbor concerns about their financial situation.
If the McCallister family from the holiday classic “Home Alone” were around today, their lifestyle might resemble a substantial and privileged existence. They would likely live in a spacious, likely multi-story, residence in a well-to-do neighborhood with modern amenities. Their household income would comfortably exceed $120,000 per year.
What seemed extravagant over 30 years ago when the first two movies were filmed is now even more opulent today, particularly due to the influence of inflation.
The house was listed for sale for $5.25 million back in the spring. At this time, the sale is still pending and its final price will not be known until the deal is officially completed, stated Matt Kreamer from Zillow.
Purchasing the house today at $5.25 million would require a monthly payment of approximately $34,000, accounting for the principal, interest, and property taxes, assuming a 20% down payment and a 7% mortgage rate.
According to Kreamer, one would have to make $100,000 a month in order to afford the home without exceeding one-third of their income going towards housing costs.
‘It’s a truly stunning house that instantly stands out as one of the most recognizable movie homes in the country,’ Kreamer noted.
In the early 1990s, when the movie initially released, Kreamer believes the home would have probably been worth around just over $900,000, a substantial price tag for that era.
Although the McCallister family’s house appears to be quite grand, it may not necessarily be a sign of their high net worth in real life.
“It’s likely they haven’t accumulated much equity in their home,” Garrett said, taking into account their current life stage and situation.
In the movies, the McCallister family is driving what were innovative vehicles at the time – a 1986 Buick Electra Estate Wagon and a 1990 Buick LeSabre. Each of those cars would be worth around $40,000 if they were available for purchase today.
The family appears to want to showcase their financial status – as evidenced by Kate paying the $122.50 pizza bill in cash and leaving a large tip – but conserves expenses on things that aren’t visible, according to Garrett.
The way his family discusses money can sometimes indicate a mindset of scarcity, he explained. For instance, Kate expresses her concern that they shouldn’t waste the family’s milk before their upcoming vacation.
First-class flights to travel on those Christmas dates are selling for $8,528 each.
According to Garrett, the McCallisters could find flights for approximately $25,000 on average, based on his recent flight searches. Nevertheless, that would still be a substantial expense for most families.
The film industry may not seem like a typical source for guidance on managing finances, but several movies offer valuable life lessons on handling money matters.
“Wall Street” is one movie that highlights the dangers of getting caught up in get-rich-quick schemes. A story about a young stockbroker takes viewers on a wild ride, giving them an unvarnished look at the cutthroat world of high finance. It delves into themes of greed, corruption, and the pursuit of wealth at all costs, serving as a cautionary tale for investors.
Another movie that conveys valuable lessons is “The Wolf of Wall Street”. Based on the true story of a stockbroker who founded Stratton Oakmont, a brokerage firm that engaged in a variety of illicit activities, the film teaches viewers the consequences of treating money as a means to an end rather than an end in itself. It shows the empty narcissism and the perils of unchecked capitalism.
“The Social Network” raises awareness of the importance of intangible assets and intellectual property. This Oscar-nominated film revolves around the rise of Facebook and provides the audience with valuable insights into the roles of innovation and invention in accumulating wealth.
“The Aviator” reminds viewers that building wealth isn’t limited to making more money in one’s career. The biographical drama about the life of Howard Hughes teaches the importance of human capital, entrepreneurial spirit, and sounding financial advice from trusted experts.
“You’ve Got Mail” teaches viewers to create a budget for luxuries and prioritize one’s needs in life. This romantic comedy showcases how keeping your financial priorities in line with your personal values and investing in shared experiences creates relationships that last.
“If you’re looking to learn about financial planning through film, remember that these movies will help you develop a well-rounded view of the economy and prepare you for long-term wealth management. You can learn valuable lessons about investing, innovating, the importance of financial integrity, and the things in life that add lasting value to you.”
Much of Kate and Peter McCallister’s financial situation remains unclear, including their occupations.
However, financial planners identified some gaps in the family’s situation that could be improved with proper planning.
At the top of their priority list: adequate protection through insurance.
Because Kate and Peter McCallister have five young children, it’s especially important to them to have sufficient life and disability insurance in place, so that in the unlikely event of their passing or incapacitation, their family will be taken care of financially.
The film – featuring numerous incidents of slips and falls at the family’s residence as 8-year-old Kevin tries to fend off the burglars – suggests a potential need for an umbrella insurance policy, in the event that the McCallisters are found legally responsible for any injuries or damages that occur.
Kate and Peter, the forgetful parents from the first two “Home Alone” films, would be wise to put a solid estate plan in place in case they’re no longer able to take care of Kevin. This would include having a valid will, durable powers of attorney, advance directives, beneficiary designations, trusts, and correctly titled accounts all updated and current.
The couple should designate trusted individuals to handle their children’s physical and financial well-being if they’re unable to do so themselves. They may also choose a standby guardian, who can temporarily step in if the parents are unable to care for the children, according to Aubrey Williams, a financial planner at Open Path Financial in Santa Barbara, California.
There’s a risk that if parents aren’t available to care for their children, the kids might temporarily become the state’s responsibility, since no one else is available to take care of them.
Update: The article has been revised to correctly spell LeSabre.
