17 Best Financial Literacy Books You Should Read
Books on financial literacy teach you to clearly understand how to make money and manage it. They will tell you how to budget correctly, spend less, receive more, invest and increase the remaining difference, and get out of debt bondage.
Information on this topic is useful for people of any income who earn but spend all their money or take on debt. The article was prepared in close cooperation with Zest Cash, which advised us on financial matters. Below are the top 17 books for those starting their financial literacy journey.
“Rich Dad Poor Dad” by Robert Kiyosaki
The book presents a story from the childhood of the author himself, connected with two dads: his own father and a well-to-do dad of a friend. Each of them built the boy’s attitude to finances and investments in his own way. This bestseller proves the value of investing and teaching children the basics of financial literacy.
Kiyosaki’s book has acquired a large number of adherents who, in admiring reviews, talk about their experiences and about what an incredible impact it had on their lives. It is written in an easy style in an understandable language, reads literally in one breath and is filled with practical advice.
“Thinking, Fast and Slow” by Daniel Kahneman
At first glance, this book is not related to the topic of economics, but it will be useful to anyone who wants to learn how to make competent and balanced decisions, including financial ones. Nobel laureate Kahneman talks about two modes of thinking – fast and slow. The first mode works automatically, requiring almost no effort. And the second – conscious – turns on when the brain solves, for example, a complex task. These systems interact with each other, determining how a person will behave in a given situation. The author details how to learn to control your behavior and make decisions more consciously and rationally, not relying only on fleeting desires and impulses.
“Economics: The User’s Guide” by Ha-Joon Chang
Cambridge economist Ha-Joon Chang looks at economics through the lens of history, which helps to see the deep connection between these disciplines. The author brings the reader to an understanding of how the modern economy works from afar: he tells how capitalism was born, how the global financial system changed and how new technologies influenced it. Chang explains in a light and entertaining way how various financial institutions work and how the financial system is regulated. After reading this book, you will be much better oriented in economic theory and learn to see the relationship between various world phenomena.
“Digital Gold” by Nathaniel Popper
The book explains quite well the foundations for the emergence of such a phenomenon as cryptocurrencies in general and the first cryptocurrency, bitcoin, in particular. Two main points that define the outline of the entire work of Nathaniel Popper.
Firstly, it is 99% dedicated to bitcoin: the origin of this phenomenon, the historical period that prepared the ground for the introduction of cryptocurrencies in the best possible way, and, of course, stories about pizza.
Secondly, the book does not look like a practical guide or some kind of bold publication with new ideas and interpretations, but it is quite suitable as a retrospective understanding of the history of the appearance of the first “digital gold” in the world.
“Cashflow Quadrant” by Robert Kiyosaki
The author makes us understand the tricks of the allocation of global capital. Also, the difference between a businessman and an employee will become clear to you. You will find out the reason for the ruin of some investors and the growth of capital of others, as well as the search for a new job by one part of the population and the organization of their own business by another. The book will help you get comfortable in the financial market.
“The Richest Man in Babylon” by George Clason
The book was published in 1926, and the events described in it take place in Babylon. After you finish reading it, you will be surprised that the principles of how money works have remained unchanged and quite simple. Taking the lives of unremarkable people as a basis, Clason demonstrates ways to save and increase money.
This book on financial literacy is useful for teenagers and even young children, for whom the meaning of money and the basis of its circulation will become clear. The author’s most important advice is “always set aside a certain amount of finance to make capital.”
“Warren Buffett’s Ground Rules” by Jeremy Miller
For beginners to learn the basics of financial literacy and timidly starting to invest, it would be nice to have a sample of an outstanding personality. Warren Buffett, a legend admired by amateur investors around the world, can serve as such a guide.
Warren writes an annual open letter to the shareholders of his Berkshire Hathaway company. Buffett, 90, has been sending messages like this since 1965. They gained a special reputation and subsequently became a real world event among financiers. Despite the fact that Warren is known as a visionary and his forecasts never go unnoticed, the expert is convinced that making predictions about the functioning of the market is a waste of time. His postulates of success for many years are endurance, diligence and stable convictions.
Jeremy Miller, as a specialist studying and summarizing analytical research in the field of investment, has done a tremendous job. He not only brought together the most important passages from Buffett’s letters from 1965 to 1970, but arranged them by topic. Each chapter of the book begins with a specific conclusion that provides an insight into the life of the famed investor. Investment technologies change over time, but Buffett’s paradigm remains relevant.
“A Dog Called Money” by Bodo Schäfer
The famous business coach talks about money in an interesting and unobtrusive way. This book can rather be attributed to children’s literature: a 12-year-old girl tells how she and her dog named Mani take the first steps in mastering financial literacy. However, Schäfer put in a deeper subtext, and adults will benefit from reading it since most of them have no idea how to use money.
The author in simple language reveals the very concept of money, the basic postulates of wealth, teaches the ability to extract profit from their finances, to preserve and increase them. Reading this book on financial literacy with your child will bring good results.
“Think and Grow Rich” by Napoleon Hill
This bestseller was created at the beginning of the 20th century and has gone through more than 40 editions. Here are stories about the lives of famous millionaires of that time who achieved recognition despite obstacles. Hill held conversations with major businessmen: Henry Ford, Thomas Edison, John Rockefeller, and others, made an analysis of the originality of their thinking and came to 13 elementary points leading to resounding success.
Hill’s book sets off an impulse that stimulates the thought process and gives impetus to action. Arthur Pell, Ph.D., has revisited old-fashioned notions and updated this modern edition with life stories of living tycoons such as Bill Gates and Mary Kay Ash. He showed that Hill’s teachings have not lost their relevance today.
“Advice to a Young Tradesman” by Benjamin Franklin
Benjamin Franklin is the greatest figure in the United States, who excelled in many areas of life: from history and politics to science and journalism. In his autobiography, Franklin talks about his life principles, thanks to which he was able to effectively communicate with completely different people and conduct entrepreneurial activities. The book will be most useful to young people who are just starting their career path – it contains many practical recommendations based on the rich personal experience of the author.
“The Lessons of History” by Will and Ariel Durant
Professional historians talk about how Western civilization developed. Their observations boil down to the fact that history is cyclical: everything that has ever happened in the world will repeat itself. After reading this book, you will understand how the world economy works and how certain historical events set off a chain of changes in the financial market. This book will teach you to take a broad look at the art of dealing with money and will definitely help broaden your horizons and make your understanding of world economic processes deeper and more complex.
“The Intelligent Investor” by Benjamin Graham
This and the following books are addressed to a greater extent to people who are deeply versed in finance. Even the masters started with little, for example, reading tomes on investing. So, in 1949, Warren Buffett came across the book The Intelligent Investor, written by an expert in the field of economics Benjamin Graham.
The young businessman rated it as the best investment story. Years later, Buffett remained unconvinced and continues to recommend this book, which has been reprinted only in America about 10 times.
In his book, Benjamin Graham explores all aspects of effective investing behavior, from strategy creation to execution. The author, being one of the world’s recognized economists and investors, the founder of “value investing”, focuses on the basic rules of capital investment and provides clear and solid advice.
“The Road to Financial Freedom” by Bodo Schäfer
Well-known business coach, fascinatingly talks about the psychology of success. According to the author, rich and poor differ not so much in the size of the bank account, but in the way of thinking. Read The Road to Financial Freedom to determine your psychological type and learn how to think in terms of a financially free person. The book will tell you how you can achieve wealth with the help of bank deposits, equity funds, stock gambling. The recommendations are supplemented with examples, stories and even parables.
“Global Asset Allocation” by Meb Faber
How can an investor diversify their portfolio on a large scale, using the globalism of financial markets today? Faber, a well-known Western merchant and head of the exchange-traded fund of Cambria, can help with this issue.
In the book, the author reviews data from past periods since 1973, information on the performance of investments of 13 types of assets in the form of stocks, bonds, cash or real estate. After examining the impact of inflation on money, Meb recommends mitigating extreme drawdowns in venture capital assets through a mix-and-match approach, such as the simple combination of stocks and bonds.
A well-known investor blogger is analyzing possible more comprehensive diversification options with such an asset as real estate. Faber places particular emphasis on examples of the famous investment portfolios of the American businessman Ray Dalio, Warren Buffett and endowment funds.
“The Financier” by Theodore Dreiser
The American novelist Theodore Dreiser has long taken pride of place among the classics of world literature. The theme of big business, people who both succeeded in it and failed, attracted the attention of T. Dreiser even in those years when he was engaged in journalism. The hero of the novel “The Financier” – Frank Cowperwood – is not only a successful businessman and the owner of a huge fortune. He has a special magnetism, supernatural power over both men and women. Wealth for him is not an end, but a means that allows Cowperwood to live, guided by the principle: “My desires come first.”
“MONEY Master the Game” by Tony Robbins
Based on extensive research and personal interviews with over 50 of the world’s legendary financiers, famed Tony Robbins has developed a simple 7-step plan that anyone can use to achieve material wealth. Tony explains even the most complex financial concepts in a simple and understandable language, accompanied by real life stories. Together with readers of all levels of wealth, he goes through all the steps leading to financial freedom, along the way debunking the myths that prevent people from becoming rich. This book will help you learn to think like the 50 most successful investors in the world, get rid of material problems and achieve financial security, create sources of guaranteed income that will not dry up as long as you live.
“The One Minute Millionaire” by Mark Victor Hansen and Robert G. Allen
The authors of this book reveal their secrets on its pages. They have been teaching people how to achieve extraordinary wealth and success for many years. They have already helped thousands of people become millionaires. Now it’s your turn. Is it possible to earn a million dollars in one minute? The answer will probably surprise you. The book radically changes the way we look at enrichment systems.
“The One Minute Millionaire” is two books – “artistic” and “technical” – in one. The book addresses two hemispheres of your brain at once, two “learning styles”, so that you can better absorb the most important life lessons contained here. On odd pages you will find the story of a woman who had to earn a million dollars in 90 days in order not to lose her children forever. Even-numbered pages offer practical, step-by-step strategies and techniques that apply to the real world. There are more than a hundred “millionaire minutes” in this book, each of which contains a capacious and valuable lesson, accompanied by specific enrichment techniques. However, the authors teach not just how to become a millionaire – they teach how to become an Enlightened Millionaire, how to get rich, save wealth and share it.
Stop doing budget at random or rely on the honesty and generosity of the boss. Do not sit idly by. Acquire knowledge, read a beginner’s guide on how to manage your money, buy books on financial literacy, and they will help you gain financial independence.
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