Experts agree that learning about money earlier is better because it is hard to break bad financial habits. On the other hand, good financial habits set an individual up for success.
Therefore, there is a need for teenagers and young adults to be equipped with the right skills and knowledge to have healthy money habits. Personal finance books are excellent in teaching young adults about money, using it, and avoiding loss.
Unfortunately, many parents think that the topic is taught in school. If personal finance was less of a taboo topic, then perhaps the debts of Americans could be less.
The best finance books for young adults are the ones which educate about the importance of management of money.
Books are essential in teaching young adults about finances and are written by people who have knowledge and experience in finance. They know how to make money and things to do to keep the money.
Anyways, here are nine of the best finance books for young adults.
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Nine Finance Books for Young Adults
1. I Will Teach You to be Rich, by Ramit Sethi
Ramit Sethi’s finance book is perfect for young adults. It is practical and sheds light on many people’s challenges. Sethi lays out a plan on how people can enjoy their finances without feeling guilty.
He believes in the automation of money to ease investing and saving. Failure to automate money leads to psychological challenges, like spending mindlessly on wants and things with no value.
Sethi teaches on taking care of your finances and, at the same time, spending on the things that matter a lot to you. He is also aware that living on a budget can be challenging.
Therefore, he proposes to have and follow a plan on Conscious Spending rather than a budget. The plan will allow you to save for yourself without feeling guilty when you spend money on the things you want.
It’s an excellent book for young adults because it’s relatable.
2. The Millionaire Next Door, by Thomas J. Stanley
The Millionaire Next Door is a classic finance book written about the common characteristics of wealthy people.
It shows readers that it’s possible to retire when you are wealthy without living in mansions or having luxurious things.
Thomas J. Stanley informs readers that the wealthiest people do not spend their time flaunting their money. He also indicates that you don’t need to have a high-profile life to become a millionaire.
Instead, you can be wise and frugal with your finances and become a millionaire.
Stanley explains that millionaires attain status by working hard, understanding where to spend, and frugal living. It gives a different perspective on the meaning of being rich.
It’s a significant finance book for young adults because it shows that luck is not a recipe for being rich. But instead, riches are achieved through your day-to-day decisions. The book makes the readers realize that financial goals can be achieved through a lifetime of good financial habits.
3. Rich Dad, Poor Dad, by Robert T. Kiyosaki
Robert Kiyosaki writes books to help people understand how the rich use their money to compound their wealth and how the poor spend and have no savings.
He is a champion of if you want to be wealthy, you need to buy things that give you money and not the other way round. His idea that owning a home is an expense rather than an investment came from this book.
It’s an excellent finance book for young adults who want to understand how the wealthy acquired their status and why the poor stay the same. It completely changes the way a person approaches their finances.
Reading this book will make you mindful of how you spend, make you love investments, and achieve a passive income.
4. Broke Millennial, by Erin Lowry
Broke Millennial details how millennials who lack money and lack financial knowledge can become financially literate and attain wealth.
It’s not one of those financial books that are dragging and boring. Instead, the author uses real-life examples to make the reader relate to what she is talking about.
Connecting to the information makes it stick in your head for a long time.
Lowry’s book’s contents cover common topics about personal finance that every young adult should know. These include investments, budgeting, credit cards, and preparing for retirement.
In addition, it’s a fun book for people who appreciate real financial scenarios. Lowry smartly wrote the book, but at the same time, making it relatable, fun, and entertaining for young adults.
5. Why Didn’t They Teach Me This In School, by Cary Siegel
Originally, Cary Siegel wrote this book for his children as they entered adulthood.
It’s filled with financial lessons that prepare young adults for what to do and look out for financially. It also offers tips on managing money by listing 99 money management principles and discusses each individually.
In addition, it has several lessons from different personal finance aspects, like investing, budgeting, debt, housing, and saving.
The author used personal experience when he wrote this book. Therefore, it’s not like teaching in a classroom and is genuine.
The book is written in an easy-to-read and digestible way and is aimed at young adults who want to learn more about personal finance. It offers a good foundation for future habits regarding saving money.
6. The Early Investor, by Michael W. Zisa
The Early Investor is a good finance book for motivated young adults interested in investing and building wealth.
Zisa provides detailed answers to simple questions such as investing and stocks. He also offers guidance on alternative investments, frugal investing, Exchange Traded Funds, essential financial planning and investing concepts, and Mutual Funds.
The book was updated in 2020 to accommodate intelligent young adults.
Zisa has a talent and is experienced in explaining complex concepts by making them easy to understand.
The book highlights the power of compounding and the advantages of investing at a young age. Young adults will most certainly resonate with this book.
7. The Simple Path to Wealth, by JL Collins
Collins understands that money is a powerful tool that humans have. Therefore, there is a need to acquire skills to help understand how it works to survive.
Collins wants the readers to know how they can gain wealth and explains the different financial pitfalls that should be avoided. He also explains compounding wealth and how not to lose the compounded wealth.
The book is technical on the importance of compounding wealth. JL Collins indicates that people should set aside a certain percentage of their money in stocks and bonds.
He also shares how to calculate the amount of net worth or income invested in stocks and bonds. This helps you to diversify and reduce the risk of investing.
Collins explains savings, explaining the need to save more by adjusting your lifestyle. It’s an excellent finance book for young adults. They will learn about compounding money, saving, making more money, and the 4% rule.
The book is easy to read and makes complicated financial topics easy.
8. The Total Money Makeover, by Dave Ramsey
The Total Money Makeover is an excellent book for young adults who have debts.
It’s also an excellent choice for financial planning. Ramsey teaches about different methodologies and principles on how to get out of debt and become debt-free.
It is a good book for long-term planning. In addition, the book talks about investing, saving, and having an emergency fund.
9. The Automatic Millionaire, by David Bach
The Automatic Millionaire is an excellent book on how to acquire wealth.
Bach has written different ways on what you need to do to become wealthy. He offers additional strategies and tips that readers should follow for them to become financially savvy.
The concepts indicated in the book may be contradictory to other financial authors. However, he has explained his ideas and provides recommendations to his readers.
Bach has provided practical and clear financial lessons in this book. Even though the ideas are not groundbreaking, readers can have sound principles after reading the book.
As proved by the books listed above, personal finance should not be a boring or taboo topic.
Finance books can help young adults learn about savings, investments, debt-free living, and a financial plan.
Even though the main concepts are similar in almost all the books, it is essential to learn from different authors. This is because you will discover other principles and ideas.