The McCallister family, known worldwide from the iconic film “Home Alone,” presents a fascinating case study in financial planning and lifestyle management. According to Cody Garrett, a certified financial planner, the McCallisters are “well off and in a good place financially.” Their lifestyle, characterized by grand expenditures and significant assets, offers insights into their financial standing and priorities.
The McCallisters’ spending habits suggest a substantial disposable income. On the night before their infamous trip, they order 10 pizzas, highlighting their financial ease. Furthermore, they reside in a spacious home that accommodates 15 people, including extended family. Such a residence represents a major financial commitment and reflects their capability to manage high living costs.
Their choice to spend the Christmas holiday in Paris underscores their financial prowess. The cost of airfare for the entire family today would be approximately $55,650, as estimated by GoBankingRates. This expensive travel plan speaks volumes about their ability to indulge in costly endeavors.
The family’s vehicles also hint at their comfortable financial status. They own relatively new cars—a 1986 Buick Electra Estate Wagon and a 1990 Buick LaSabre—valued at around $40,000 in today’s market. However, Garrett suggests that the McCallisters’ lifestyle may not fully indicate their wealth.
“But inside their own home, they’re actually maybe a little scared about money.” – Cody Garrett
The McCallisters comprise Kate and Peter and their five children. This family size emphasizes the importance of life and disability insurance to safeguard their dependents’ future. Furthermore, the family’s home, featured in the movie, is located in Winnetka, Illinois. This five-bedroom, six-bathroom house was recently listed for $5.25 million, illustrating its high value. Back in 1990, its estimated worth was around $1 million—still a significant amount for that period.
To comfortably afford such a home without financial strain, the McCallisters would need an income of approximately $100,000 per month. This estimation assumes they follow the common affordability guideline of not spending more than one-third of their income on housing costs. Despite these figures, Garrett notes that the family might not hold much equity in their home due to their life stage and circumstances.
In terms of their frugality, the McCallisters exhibit a tendency to save on less visible expenses, such as groceries. This behavior suggests they are mindful of their spending despite outward appearances of affluence.
“It’s a pretty spectacular house, and certainly one of the more famous movie homes that people can instantly recognize,” – Matt Kreamer
Looking towards future stability, Aubrey Williams, another financial planner, advises the McCallisters to establish a pre-need guardian for their children. This precaution ensures that if Kate and Peter are unable to care for their children, there is already someone appointed to step in.
“If the parents are not there to take care of the kids, there’s the possibility that kids, even if briefly, will become a ward at the state because there’s no one to care for them,” – Aubrey Williams
Additionally, Garrett recommends considering umbrella insurance for liability protection against potential injuries or damages occurring on their property.
Featured image courtesy of Wallpapers.com
