In the beloved holiday film “Home Alone,” the storyline revolves around a young boy inadvertently left behind when his family goes on a Christmas vacation. Since its release in 1990, this film has sparked curiosity among viewers, not just about its plot, but about the apparent wealth of the McCallister clan.
The McCallisters live a life that seems affluent, with the cinematic depiction of their home capable of accommodating 15 people, the ordering of 10 pizzas on their trip’s eve, and the entire family flying to Paris for the holidays. Cody Garrett, a certified financial planner and head of Measure Twice Financial in Houston, commented that the portrayal suggests a family that is financially comfortable.
However, Garrett posits that their wealth might not be as substantial as it seems. To dig deeper, he undertook a financial analysis based on “Home Alone” and its sequel, “Home Alone 2: Lost in New York,” released in 1992. This exploration included a webinar with about 25 financial planners discussing the financial implications shown in the movies.
Despite the films’ portrayal of a lavish lifestyle, it’s possible that their wealth is not as immense as perceived. The McCallisters’ lifestyle, while it seems to involve hefty spending, may conceal financial apprehensions. Garrett noted that despite displaying a high-spending lifestyle, there might be underlying financial concerns within the family.
Today, decades later, the McCallisters’ lifestyle would be even more extravagant due to inflation. The real-life home, a five-bedroom six-bathroom property in Winnetka, Illinois, where the film was shot, was listed at $5.25 million, and remains under contract, as per Zillow’s Matt Kreamer. Acquiring this house today would imply a monthly cost of $34,000, requiring an income of $100,000 per month to afford it while adhering to the housing cost guideline.
In 1990, the residence’s value was estimated slightly under $1 million, a high valuation for that period. Still, the property itself may not imply strong financial standing for the fictional McCallisters, especially given the couple’s life stage.
Their vehicles, a 1986 Buick Electra Estate Wagon and a 1990 Buick LeSabre, have modern-day equivalent valuations around $40,000 each. While eager to demonstrate their wealth—such as paying a $122.50 pizza bill in cash and leaving a generous tip—the family displays frugality in less noticeable areas. Conversations hint at a scarcity mindset, as shown by Kate’s reluctance to waste milk before their trip.
The family’s travel expenses to Paris were actually covered by Peter’s brother, Rob, approximated to cost $55,650 today with first-class tickets. However, Garrett suggests they could manage these flights for about $25,000 today, still imposing a considerable expense for many families.
The films leave much of the McCallisters’ financial details unexplored, including their occupations. However, financial planners identified gaps that better planning could address, most notably the need for comprehensive insurance coverage.
With five children, securing adequate life and disability insurance is crucial to safeguarding their future if anything happens to Kate and Peter. The antics in “Home Alone,” involving numerous mishaps at their home, underscore the necessity for an umbrella insurance policy to cover potential liabilities.
Estate planning is another critical aspect for the McCallisters, given their tendency to misplace their son Kevin. Establishing updated wills, powers of attorney, and other legal documents is vital to ensure their children’s care should they be unable to do so themselves. Naming guardians and establishing pre-need guardianship arrangements is also advisable, as Aubrey Williams from Open Path Financial in Santa Barbara notes.
By remaining vigilant and proactive, the McCallisters could alleviate many financial uncertainties and better secure their family’s future well-being.
