I remember seeing a tweet a while ago about how most children of the nineties had a phase in their childhood on either: Greek mythology, Salem witch trials, or Titanic. I was a Titanic kid. Having an older sister meant I got to watch the 1997 film far too young, and then asked my parents to buy almost every Titanic book I saw. Thankfully they obliged. Years later, I’ve watched that film too many times to count. 

So, what better than to bring two of my passions – Titanic and financial wellbeing – together to share some of the money lessons I learnt from Titanic. Without further ado… 

Expensive (and fancy) doesn’t always mean good

On its maiden voyage, Titanic was the largest passenger ship in the world with advanced safety features for its time. This grandeur and opulence certainly captured media attention and got passengers talking. But fancy isn’t always the best. After all, the ship did still sink. 

We might aspire for designer clothing or a five-star, luxury holiday but: is that what we really want or simply something we aspire to have when money is tight? A big price tag doesn’t always mean quality either. Designer clothing may fray or wear just as quickly as high street equivalents. That five-star holiday might end up being a getaway from hell. Expensive doesn’t automatically equal the best.

Make sure your emergency fund covers your basic emergencies

The sinking of the Titanic can teach us a lot about preparing for emergencies and how we deal with them successfully. The Titanic had 20 lifeboats, which amounted to roughly half the capacity of people on board on the night she sank (and a third of her total capacity). The ship owners thought adding more lifeboats would clutter the deck; therefore deeming them not that important.  

How does this translate to personal finance? Be prepared for emergencies and make sure you have a sufficient emergency fund. It’s recommended that you have between 3-6 months of expenses saved up for emergencies but this will depend on your circumstances, such as (but not limited to): whether you have dependents, whether you’re able to rely on a spouse’s income temporarily, savings you can fall back on, and the security of your current job. Some of it can depend on your risk appetite too. Whatever you decide on, remember to review your emergency fund periodically, especially if you’ve dipped in to it or seen your bills rise recently.

Sometimes, things are out of your control

In the film, Jack wins a lucky hand at poker and his ticket on the Titanic and has a “make it count” attitude. But he was unfortunate and still perished during the sinking (yes, he could have fit on the door). 

This reminds us that luck will only get us so far and there will always be things outside of our control. Let’s look at this from a modern perspective of trying to keep the groceries budget down during the cost of living crisis. We might make a meal plan, write lists, never go shopping hungry, and swap to eating more veg over meat. But despite our best efforts, we’re still battling against high food prices. That itself can often feel like you’re sinking before we’ve even been given a chance.

There we have it. Even if you were not a Titanic kid, hopefully these three money lessons can be relatable and translated to your life. If you liked this article, I also wrote about the unrealistic expectations around money depicted in Gilmore Girls – it’s one of my most-read articles and hopefully you’ll like it too!