Eva-Katalin / Getty Images
Commitment to Our Readers
GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Trusted by
Millions of Readers
Getting teens to read books is becoming more and more of a challenge. This can be particularly true when it comes to books about money and personal finance, which teens should start reading well before they are financially independent.
“Resources that strike a balance between the education and engagement needed to teach money management to junior high and high school students are needed,” said Ryan McDonald, chief operating officer of Resell Calendar. “The best books in this space do so by weaving real-world examples, relatable characters and storytelling to make potentially dry financial concepts into simple lessons about money and how it relates to our lives.”
For those who are looking to give teens a book or two this holiday season, here are five financial books that would make great Christmas gifts.
‘The Teen’s Guide to Personal Finance’
“The Teen’s Guide to Personal Finance” by Joshua Holmberg and David Bruzzese is a great book to consider giving as a gift. According to McDonald, the book “does a beautiful job of providing a more structured approach to financial education, but it does so in a way that is relevant and clear to its teenage audience.”
It’s a book likely to keep any teen engaged too. “It is an interactive book, with real life examples, quizzes and practical exercises, which make financial education an active and engaging learning journey,” McDonald said. “However, it is so good at showing how financial literacy is the direct result of personal independence and future success.”
‘The Psychology of Money’
This book by Morgan Housel “might seem like heavy subject matter for a teen, but we must teach them the psychology of money because our spending decisions are so influenced not just by logic but our feelings,” said Stephen Boatman, CFP, CSLP, principal and financial planner with Flat Fee Financial.
Boatman explained that money is an essential tool, but it leads to security, not true fulfillment. “Teens should learn early that rather than chasing the ‘American dream,’ real happiness doesn’t necessarily come from wealth,” he said.
Not only that, but teens will also learn how to proactively apply the concepts in the book to their own lives. “This book helps teens understand vital concepts like lifestyle inflation so they can watch for and prevent it as they start earning more rather than waiting until their spending grows out of control,” Boatman explained. “Housel also drives a really important point home — it’s okay to make money mistakes as long as we use them as lessons to do better in the future. This book can help teens learn important foundational skills and establish a healthy relationship with money throughout their lives.”
Thanks!
‘The Richest Man in Babylon’
One of the most timeless pillars of financial education is the book “The Richest Man in Babylon” by George S. Clason, which provides all the wisdom through captivating parables set in ancient Babylon, according to McDonald.
“The story-driven approach to financial principles is what makes this book so effective for younger readers, as the financial principles are woven into almost fable-like narratives that feel more like an adventure than a lecture,” McDonald explained. “At any stage of your financial journey, the book’s simplicity in explaining key concepts like ‘pay yourself first’ makes it easy to read and yet deeply impactful.”
‘The Wealthy Barber: Everyone’s Commonsense Guide to Becoming Financially Independent’
“‘The Wealthy Barber‘ is a great introduction for teens and young adults because the writing and concepts are approachable and engaging,” said Gary Hemming, a team lead advisor at ABC Finance. “You don’t need to worry about complex lingo because Chilton’s explanations are simple, and his conversational style makes learning simple.”
Hemming went on to explain how the author, David Chilton, covers everything from saving and budgeting to investing in clear, concise language, and his system to “get rich” lays out the groundwork for smart financial decisions as teens hit adulthood.
“If they can manage to stash 10% of their earnings away into their ‘rich someday’ fund and another 10% in a retirement fund, they’ll build great habits and lay the groundwork for a consistent financial future,” Hemming said.
‘I Will Teach You to Be Rich’
“I Will Teach You to Be Rich” by Ramit Sethi provides a new, fresh, modern take on financial literacy, in McDonald’s opinion.
“Written primarily for young adults, high school students will find its conversational tone and practical advice especially relatable for the first steps they are taking toward financial independence,” McDonald explained. “Sethi’s approach to automating finances and smart spending strikes a chord with tech-savvy teens who make complex financial concepts seem easy and applicable to their day-to-day lives.”
Source link
