How many of you read Nancy Drew mysteries under the covers with a flashlight when you were growing up? She was the greatest. She was clever and pretty, without being pretentious, and she always solved the mystery at hand, helping a great number of widows and orphans.
Our childhood role models, however, don’t always cut it when we reach adulthood. Let’s investigate how Nancy’s life defied good financial planning.
A Spendthrift and an Enabler
Going to all those college dances, jetting around the country on vacation, and giving to the needy consequently racked up quite a lot of bills. Nancy’s father, Carson Drew, a prominent lawyer, gave in to her every whim.
She was able to beg and cajole her absentee dad into getting most anything, all in the name of “helping others”. Carson would hand over some cash and say: “now promise me you’ll be careful.” He never said: “bring back the receipts.” Neither of them were able to say no, ignoring a basic tenant of good budgeting.
If Carson had budgeted for travel ahead of time, by June Nancy would be sitting on her front porch wondering about the mystery of the missing iced tea. Budgeting takes time, effort and discipline – none of which were evident in these stories.
Hello, SR-22
Nancy Drew is a car insurer’s worst nightmare. For example, villains often tried to run her off roads and into ditches.
She wrecked her own car, and frequently wrecked cars of friends, acquaintances, and don’t even ask what she could do to a rental car!
Her father continued to purchase new convertibles for her (see enabler above). As a result, she never developed a healthy respect for the costs involved in driving and maintaining a vehicle. Surely, her poor driving record would have resulted in driver’s license revocation and expensive SR-22 insurance for high-risk drivers.
Open Door Policy
Nancy’s home was a revolving door for criminals. Only her housekeeper, Hannah, had the sense to rig a makeshift burglar alarm with pots and pans. Couldn’t they have at least have installed some type of permanent alarm system?
Intruders entered through windows upstairs and downstairs, so they hid in the garage. They ransacked the house and stole a variety of items from the mundane to the exquisite. The Drew’s homeowners policy was probably loaded with expensive riders to cover this type of theft and damage.
To Be or Not to Be
Nancy constantly put her life in danger by taking unnecessary risks. She would run into dangerous situations with no concern for her own life. She has been slapped, pushed, hit over the head, drugged, bound, gagged, and left to starve.
While her efforts to help others were noble, I’m sure any reasonable term-life underwriter would have denied her life insurance due to perilous activities. She may have been able to purchase more permanent life insurance, useful for paying her debts upon her death (see spendthrift above).
Uneducated, Unemployed and Unmarried
Nancy Drew graduated high school and did not attend college. Based on her skill set and her father’s clout, she would have been a natural for higher education; however, she only took art lessons.
Having no marketable skills, Nancy was perpetually unemployed during a time when the economy was booming (1950’s). She only wanted to have fun with her friends and had no interest in a real job. Nancy did not seem inclined to pursue her special friend, Ned, into matrimony either.
Although “a man is not a plan”, her noncommittal attitude and lack of employment leaves one to wonder how she would get by on her own and how she could possibly save for retirement. Maybe she was planning on a big inheritance from her father, or special gifts from the people she helped.
Tax Evasion
Which brings us to tax evasion. Nancy often received a gift as a memento of her adventure. Some of them were quite rare and expensive. Nancy always claimed to be an “amateur detective” therefore she did not report any income or claim the expenses associated with her “business.” I’m sure the government would be interested in recovering that original Paul Revere bell she received.
The Secret of the Financial Plan
As we mature from children into adults, the real world sets in and we have to put aside juvenile things. We must budget and plan, save and record, avoid unnecessary risks, and capitalize on our strengths.
If Nancy had planned for her future, she would have been a better risk manager, saved some of those travel funds, and considered how she would function once she moved out on her own. Alas, when you are forever 18, these things don’t really matter.
As adults, however, we sometimes need to seek help with our financial direction. Unlike Nancy Drew, the answers don’t fall in our laps. We must plan.
Pathfinder Planning LLC is a registered investment advisor in North and South Carolina. For more information, visit www.pathfinderplanningllc.com.