Credello Discusses How Emmy-Winner 'Schitt's Creek' Can Help Consumers With Financial Planning
NEW YORK, September 24, 2020 (Newswire.com) - The tiny Canadian show Schitt’s Creek, created by father-son duo Eugene and Dan Levy, dominated the Emmy’s with a record-breaking nine awards.
Schitt’s Creek follows the once-rich Rose family, who suddenly finds themselves broke and relocates to a town called—you guessed it—Schitt’s Creek.
Perhaps going from rich to poor isn’t the most relatable scenario, but the program has some solid, and perhaps unintended, financial tips and advice.
Warning: Potential spoilers ahead.
The value of small-town vs. big-city living
As the series comes to an end, David and Patrick make the somewhat surprising decision to stay put in Schitt’s Creek instead of moving to New York. David, after learning Patrick had wanted to buy a house for the couple, puts in an offer on a small cottage in town.
While real estate prices in rural U.S. towns have climbed since COVID-19 began, consumers still can get more bang for their buck in a town like the fictional Schitt’s Creek than in a city like New York.
According to the Federal Reserve Bank of St. Louis, the median sales price of houses sold in the U.S. in the second quarter of 2020 was $313,200.
In Washington, Connecticut—a town about 80 miles from NYC—a homebuyer could get a 1,200-square-foot cottage on a 0.3-acre lot for $295,000, or $246 per square foot. For $295,000 in New York, you’d only be able to get a 540-square-foot studio apartment in Jackson Heights, which amounts to about $546 per square foot.
Create a budget, and stick to it
When David lands a job at Blouse Barn in Season 2, his boss hands over the company credit card so he can improve the store. But the not-so-financially savvy David misuses the card, leading to the store’s downfall.
Budgeting—whether for business or personal finances—can be one of the best ways to avoid falling down the rabbit hole of chronic credit card debt.
Tax deductions ≠ free money
David learned the hard way that tax write-offs aren’t free money.
Before sputtering Blouse Barn, David expenses skincare and other luxury products that he’s “testing” for the store.
David thinks a tax write-off is when “you buy something for your business and the government pays you back for it.” Close but no cigar. Johnny explains to his son that a write-off is actually “a business expense used to reduce your taxable income.”
So no, you can’t buy personal products and expect the government to cover the cost. Expenses have to be deemed necessary to be tax deductible.
After six seasons, Schitt’s Creek left its loyal fan-base with plenty of laughs—and even a few tears—along the way, and now those fans can take some lasting life lessons to pad their wallets.
Categories: Personal and Family Finances