“What makes a person truly rich? Is it the money in their bank account, or the people who love them?”
The setting is Bedford Falls, a small American town, in the 1940s. George Bailey is a man with big dreams. Since he was a boy, he wanted to travel the world, build giant bridges, and leave his "shabby little town" behind.
However, George is a man of great character. Every time he is about to leave, something happens that requires him to stay and help others. When his father dies, George stays to run the "Bailey Building and Loan," a small bank that helps poor people buy their own homes. He gives up his college money so his brother can go instead. George is the cornerstone of the community, but he feels trapped.
The villain of the story is Mr. Potter. He is a greedy, cold-hearted businessman who owns almost everything in town—except for George’s small bank. Potter wants to control the whole town and charge the poor high rents. George spends his entire life fighting Potter to protect the people of Bedford Falls.
George eventually marries his childhood sweetheart, Mary. They have a family and a drafty old house. Even though he is a hero to the town, George still feels like a failure because he never traveled, went to college, nor became wealthy.
On Christmas Eve, a disaster strikes. George’s Uncle Billy accidentally loses $8,000 of the bank’s money. If the money isn't found, the bank will collapse and George will go to prison.
Desperate, George goes to Mr. Potter for help. Potter mocks him and tells him he is "worth more dead than alive" because he has a life insurance policy.
Feeling hopeless, George stands on a bridge over a freezing river. He thinks the world would be better off if he had never been born. Just as George is about to jump, a man named Clarence shows up and tricks George and stops him from jumping to his death. Clarence tries to convince George that his life is worth living. .
In order to convince George to live, Clarence reveals that he is an Angel. To make his point, Clarence shows George what the world would be like if George had never been born.
Georg and Clarence walk through the town, but it isn't Bedford Falls anymore. It is "Pottersville." Without George’s kindness, the town is a dark, greedy place full of bars and mean people. George sees that his brother died as a child because George wasn't there to save him. He sees that the families he helped are now homeless or in jail. Most painfully, he sees Mary, who is lonely and sad because she never met him.
George realizes that his life—though humble—had a massive impact. He begs Clarence, "Please, let me live again!" Suddenly, he is back on the bridge. It is snowy and beautiful. George runs through the streets, shouting "Merry Christmas!" to everyone he passes, even Mr. Potter. He doesn't care if he goes to jail; he is just happy to be alive.
When he gets home, the whole town arrives. They heard George was in trouble and they all donated their own small savings to help him. George realizes he is "the richest man in town" because of his friends.
Click on each question to reveal the answer. Try answering on your own first!
George dreamed of traveling the world, building giant bridges, and leaving his small town behind.
George stayed because he was a man of great character and always put others first. After his father died, he took over the family business (Bailey Building and Loan). He gave up his college money so his brother could go instead. Various events kept requiring him to stay and help the community.
Mr. Potter is a greedy, cold-hearted businessman who owns most of the town and wants total control by charging poor people high rents. He differs from George, who is kind-hearted and spends his life protecting people by helping them own homes through his small bank.
George’s Uncle Billy accidentally lost $8,000 of the bank’s money.
Mr. Potter mocked George by saying this because George had a life insurance policy—if he died, the policy would pay out and cover the missing money.
Clarence is an angel (second class). His goal is to stop George from jumping off the bridge and to convince him that his life is worth living.
Bedford Falls became "Pottersville"—a dark, degraded, greedy place full of bars, crime, and mean people, instead of the warm community it was with George's influence.
George's brother Harry died as a child (George wasn't there to save him from drowning). Mary became a lonely, sad, unmarried "old maid" because she never met George.
George was overjoyed to be alive again and to have his real life back. He realized how wonderful his life truly was, and he no longer cared about the potential jail time—he was simply happy.
The whole town showed up at his house with donations to cover the missing money, proving how many lives he had touched and how much everyone loved him. He was rich in friends and community support, not money.