Whether you’ve read the book or enjoyed one of the many film and stage adaptations, you’re probably familiar with the story of A Christmas Carol.

In Charles Dickens’ classic tale, Ebenezer Scrooge is a miserly and mean old man who hoards his wealth and alienates everyone he meets.

Then on Christmas Eve, this cold-hearted character is visited by three spirits – the Ghosts of Christmas Past, Present, and Future – who make him see the error of his ways and become a more generous man.

Not only is this timeless novella a fantastic read, but you could also learn some useful financial lessons from Scrooge’s transformation. Here are three of them.

1. You can learn valuable lessons from your past

The Ghost of Christmas Past is the first spirit to visit Scrooge. By showing the old man scenes from his life, the ghost forces Scrooge to confront his previous poor behaviour.

Scrooge sees that he was once a happier and kinder person. However, his lonely childhood and the loss of his love, Belle, turned him into a bitter man who has since rejected relationships and mistreated others.

Reflecting on his life is the first step in Scrooge’s journey to becoming a more altruistic person.

Likewise, when planning your finances there are always lessons to be learned from your past.

Regularly reviewing both your successes and your mistakes could help you adapt your financial plan so that you stay on course to achieve your goals.

Indeed, understanding how your previous decisions have contributed to your current financial situation, such as which assets and funds you choose to invest in or how much debt you take on, could help you build the future you desire.

Yet sometimes it’s tricky to see your past objectively. That’s why working with a financial planner can be so beneficial. Just as the Ghost of Christmas Past gave Scrooge a new perspective on his life, reviewing your finances with a professional could allow you to identify meaningful and realistic goals for the future.

2. Sharing your wealth could benefit you and other people

Before the spirits visit Scrooge, he is depicted as a wealthy but mean member of the community.

On one occasion, two men ask him for a donation to help the poor. Scrooge rudely refuses and says that if the poverty-stricken people were to die, this would be beneficial as it might “decrease the surplus population”.

However, after the Ghost of Christmas Present shows Scrooge how those less fortunate than himself struggle through life, he becomes a philanthropic and altruistic individual. What’s more, by helping others, he feels better about himself, exclaiming, “I am as light as a feather, I am as happy as an angel”.

Similarly, sharing your wealth – whether with loved ones or charitable causes – could not only provide valuable support to others, but it might also boost your wellbeing. According to a report from the Mental Health Foundation, doing good for others could reduce stress, improve your self-esteem, and make you feel happier.

What’s more, donating to a worthy cause may have several tax benefits. For example, you could reduce the amount of Inheritance Tax (IHT) your beneficiaries need to pay by leaving a charitable legacy in your will.

This is because any gifts you make to a registered charity usually fall outside your estate for IHT purposes. Additionally, if you leave at least 10% of your net estate to charity, you may qualify for a reduced IHT rate of 36%, instead of the standard rate of 40% (2024/25).

Read more for your chance to donate this Christmas: Fiona’s charity drive to deliver essential aid to Ukraine

3. Looking ahead could help you plan effectively for the future you desire

The last spirit to make an appearance is the Ghost of Christmas Yet to Come, who shares a vision of what a future Christmas Day might look like if Scrooge continues on his current path.

Scrooge is horrified to see his own death, which others seem at best indifferent to and at worst, delighted by.

He is also shown the mourning family of his employee, Bob Cratchit. Scrooge mistreated Cratchit who subsequently fell into poverty, resulting in the death of his young son, Tiny Tim.

Importantly, the ghost makes it clear that Scrooge can change his future by mending his ways.

Likewise, it’s never too late to improve your financial habits. When it comes to financial planning, thinking carefully about what you want your future to look like could help you craft a strategy for achieving your long-term goals.

While we can’t magic up a vision of your future in quite the same way as the Ghost of Christmas Yet to Come did for Scrooge, we can show you where your current financial trajectory might lead.

Using cashflow modelling, we can paint a clear picture of how your wealth might look over the long term, based on factors such as your income, outgoings, investment returns, and so on.

If, like Scrooge, your future seems unappealing, we can help you adapt your financial plan to set you on course for the lifestyle you desire.

For example, if your priority is to leave a meaningful legacy to your loved ones, you may decide to amend your estate plan to ensure that your wealth is passed on as tax-efficiently as possible.

Whatever your current situation or your aspirations for the future, taking the A Christmas Carol approach of reflecting on the past and considering what may be yet to come is a useful starting point.

Get in touch

If you’d like to find out how we can help you plan for the future you desire and build positive financial habits in 2025 and beyond, we’d love to hear from you.

Email hello@intelligentpensions.com or call 0800 077 8807.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate estate planning, cashflow planning, or tax planning.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.