Financial literacy is the ability to make sound decisions about money and finances. It’s important for everyone, but it’s especially critical for those with limited resources or who are in a position where they need to manage their own finances.
Financial literacy is not just knowing how much you should be saving each month; it’s also understanding your options when investing and making sure that you have enough money saved up to cover any emergencies.
The best way to learn about these things is by reading good financial advice from people who know what they’re talking about.
There is a huge range of financial literacy available ranging from books based around budgeting, investing, and general personal finance management.
These books are a fantastic way of giving yourself the knowledge you need to manage your finances well and to learn how to be savvy with the money you do have.
Below we look at the six best books for financial literacy that are currently on the market.
Table of Contents
6 Best Books For Financial Literacy
1. Best Overall: The Total Money Makeover By Dave Ramsey
Overview
The Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey is a book that you can use to help you get out of debt, save money and live the life you want.
It’s not a quick fix or magic bullet but if you follow this plan, your finances will change forever. This book has helped millions of readers around the world to achieve freedom from debt and build wealth.
This book contains all the tools you need to take control of your personal finances and create true wealth. Learn how to pay off debts, avoid future credit card problems, build long-term wealth, and much more.
This book gives you a step-by-step plan to get out of debt. It shows you how to find extra money every month, so you can pay down debt faster. You’ll also learn how to keep up with regular payments without going into debt.
You will learn how to build an emergency fund to protect yourself against unexpected expenses. And you’ll discover why it’s vital to have enough savings to cover at least six months’ worth of living expenses.
This book also teaches its readers how to invest in index funds, exchange traded funds, and the need for adequate insurance. It also explains why mutual funds aren’t always a good idea and what alternatives there are when investing in stocks.
And finally, you’ll learn how to be smart with your money and avoid being taken advantage of by unscrupulous people who promise to make you rich overnight.
Pros:
- Covers a huge range of financial topics
- Gives a step-by-step plan
- Proven success
- Written by a financial expert
- Available in hardback, paperback, and Audible
Cons
- Huge amount of information that may be intimidating to digest
You can buy this book on Amazon by clicking here or directly from the author’s website by clicking here.
- Classic Edition
- Way to whip your finances into shape
- This product will be an excellent pick for you
- Hardcover Book
- Ramsey, Dave (Author)
2. Best for Beginners: Broke Millenial By Erin Lowry
Overview
Broke Millennial is a guidebook for young adults who are struggling financially. It provides advice on everything from paying bills to saving money to getting a job.
It’s written by a millennial herself, who knows firsthand what it’s like to struggle financially as a young adult. She shares her own experiences and those of other young adults who were just starting their careers.
In addition to practical tips, she offers advice on topics such as finding a career path, dealing with depression, and understanding the importance of family. There are also sections on budgeting, managing student loans, and avoiding scams.
It’s designed to provide guidance for anyone who wants to improve their financial situation. Whether you’re looking to start a new career or simply trying to figure out how to handle your current one, Broke Millennial is packed full of useful information.
The author uses real stories and anecdotes to illustrate many of the points she makes. Although some of them may seem obvious, they’re often overlooked by young adults who are just beginning their journey through adulthood.
Erin Lowry was born in San Francisco but grew up in Los Angeles. When she was 18 years old, she moved to New York City to attend college. While studying finance at NYU Stern School of Business, she realized that she could do better than working in a cubicle.
At 22, she started her first business, which eventually became a successful online marketing agency. After running her company successfully for several years, she decided to quit her day job and focus on writing.
Lowry’s work has been featured in The Huffington Post, Forbes, Inc., Fast Company, and more. She lives in Brooklyn, NY with her husband and two children.
Pros:
- Easy, applicable advice to follow
- Relatable topics covered, such as student loan debt and career struggles
- Nice anecdotes throughout to break up the financial discussions
- Colloquial language is used making the book easy to digest
- Available on Kindle and Audible as well as paperback
Cons:
- Written for a target audience, being Millennials
You can buy this book on Amazon by clicking here or view courses by the author by visiting the Broke Millennial website, linked here.
- Lowry, Erin (Author)
- English (Publication Language)
- 288 Pages - 05/02/2017 (Publication Date) - TarcherPerigee (Publisher)
3. Best for Psychology: The Psychology Of Money By Morgan Housel
Overview
The Psychology of Money is a book written by an expert on behavioral finance and investment history.
It explains how our minds work when it comes to spending, saving, and investing. It also explains why we have such strong feelings towards money, and what can be done to help us make better decisions.
The book is divided into four parts, making it easy to digest and to come back to.
Each part covers one aspect of the psychology of money, being why we have such strong feelings towards money, what we can do to make better decisions when spending our money, what to do when saving money and what to do with investments.
By reading this book, you will learn how to overcome emotional barriers to enable you to make good financial decisions.
This book also allows its readers to explore why they often fail to plan for the future and how to change that. This book is a fantastic read for everyone who wants to improve their finances and to really learn the psychology behind finance and money.
Pros:
- Written in four parts
- The author is an expert in his field
- Available in hardcover, paperback, and also Kindle and Audible
Cons:
- Very deep read that requires time to process
You can buy this book on Amazon by clicking here.
- Amazon Kindle Edition
- Morgan Housel (Author)
- English (Publication Language)
- 224 Pages - 09/08/2020 (Publication Date) - Harriman House (Publisher)
4. Best for Investing: The Intelligent Investor By Benjamin Graham
Overview
The Intelligent Investor is a classic investment book by Benjamin Graham. Even though it is over 70 years old this book is still referenced and recommended by investment experts today.
The Intelligent Investor is based on the idea that investing is not a game. You need to think carefully about every decision you make. Only then can you achieve success.
The book is easy to follow as it is divided into three parts, with each part focusing on a specific topic. The first part focuses on introducing investing and explains why investing is different from playing games.
The second part speaks about investing and how it is a risky business with many risks involved. And lastly, part three focuses on educating you on how to achieve success within the world of investing.
If you are interested in learning more about investing, this book is a fantastic place to start. After reading this book you will be in an incredible position to succeed within the world of investing while also knowing how to protect yourself from risk and losing everything you have worked for.
Benjamin Graham was a professor at Columbia University for many decades as a Professor of Economics.
He said that the purpose of investing is not to make money but rather to create wealth. He believed that investors should be careful when making decisions.
They should consider both their own goals and the needs of society. That is why he wrote this and several other books, to help others succeed financially.
Pros:
- Has helped many investors since it has been published
- Written by an expert
- Perfect guide for those new to investing
- Available as both a paperback or Kindle version
Cons:
- Can only buy online, not stocked in most bookstores
You can buy this book on Amazon by clicking here.
- HarperBusiness
- It comes with proper packaging
- Easy to read text
- Benjamin Graham (Author)
- English (Publication Language)
5. Best for Building Wealth: The Automatic Millionaire By David Bach
Overview
The Automatic Millionaire is a Number 1 New York Times bestseller. The author, David Bach, has been featured on NBC Nightly News with Brian Williams and in USA Today, The Wall Street Journal, BusinessWeek, and other publications.
David Bach believes that anyone can become wealthy if they follow a few simple rules, which are the basis of his financial help book.
This book is a guide to help people implement these seven rules. It’s also a practical manual for how to save, invest, live within your means, pay off debt, start small, keep learning, and have fun.
The book is written in a very easy-to-understand way. It starts with a summary of each rule. Then it provides specific examples and advice for implementing them.
For example, Rule 1 says that you must save money. So the book shows you exactly what to do with your savings. The book gives you step-by-step instructions for saving and includes tips such as where to put your money and how much to save.
After that, the book covers investments. Here, the book teaches you how to choose stocks, bonds, mutual funds, and real estate.
Next, the book tells you how to manage your finances. For example, it helps you figure out how much to spend and how much to save every month.
Finally, the book talks about living within your means. You will find out how to avoid overspending and how to handle emergencies.
There are two main reasons why I think this book is different from all others. First, it actually works. Most books on personal finance don’t work or are focused more on helping people with larger incomes meaning they can only help a certain bracket of people.
Or in other cases, books may just give you some good ideas, but they rarely provide any actionable steps or concrete examples.
Second, the book uses humor. A lot of books on personal finance are serious. They talk about things like budgeting and taxes, but they never laugh at themselves or poke fun at the mistakes we all make. This book is very relatable which is a reason for its popularity.
So, whether you want to learn how to save more money, invest wisely, live within your means, or even retire early, this book is for you.
Pros:
- Relatable and an enjoyable read
- Written by an expert
- Has been updated since it was first published to keep it up to date and relatable
- Available in paperback or Kindle
Cons:
- Better suited for people that are building from an okay financial situation rather than someone in debt
You can buy these boots on Amazon by clicking here or directly from Barnes and Noble by clicking here.
- Bach, David (Author)
- English (Publication Language)
- 288 Pages - 12/27/2016 (Publication Date) - Crown Currency (Publisher)
6. Best Memoir: Rich Dad Poor Dad By Robert T. Kiyosaki
Overview
Robert T. Kiyosaki is the author of “Rich dad, poor dad” and other books.
He is also a best-selling personal finance author who has been featured on CNN, NPR, The Wall Street Journal Online, Business Week Online, Yahoo! Finance, MSN Money, Fox News, CBS Marketwatch, NBC Nightly News, ABC World News Tonight, and BBC News.
Kiyosaki’s philosophy is simple: If you want to get ahead in life, you need to think like a wealthy person. His method is not complicated; he teaches people how to invest wisely, live below their means, and build wealth.
He believes that most people spend too much time worrying about things they cannot change and not enough time planning for the future.
As a result, they end up living paycheck to paycheck without ever having any savings. This book will teach you how to avoid these mistakes.
This book is about changing your mindset so that you can become rich. The book teaches you three key principles that will enable you to achieve financial freedom.
These key principles are understanding money, how to live below your means and how to invest wisely. Kiyosaki details how to adapt these principles to your daily life and gives instructions on how to do so. When you finish reading the book, you will know exactly what you should do next.
Pros:
- Written by a financial expert
- Focuses on mindset while giving practical advice
- Teaches how to manage, save and invest your money
- Available as Kindle, Audible, and paperback
Cons:
- You must be willing to change your mindset for this book to help you
You can buy this book on Amazon by clicking here or directly from the author’s website by clicking here.
- This product will be an excellent pick for you
- Reading books is a kind of enjoyment
- This product will be an excellent pick for you
- Kiyosaki, Robert T. (Author)
- English (Publication Language)
Buyers Guide
There are certain things to consider when you are looking for a book that will help you on your journey to financial literacy. Below we outline certain considerations to keep in mind next time you are looking for a book for financial literacy.
Focus
Take time to figure out what you want to learn and what your goals are. This allows you to figure out what financial niche you should look for a book related to.
For example, if you want to learn about investing and managing your assets then you should get a book that can teach you how to begin investing without risking the assets that you have.
Current Situation
Try to be realistic about your current situation so that you can find a book that will help you to grow from your current situation.
If you are in debt then you should look for a book that can help you with that. Buying a book that cannot be applied to help you in your present state will not be of any benefit to you.
Budget
When you are looking for a book it is important to find one that suits your budget. Second-hand stores are a fantastic way to find great books for cheaper prices.
Amazon also sells second-hand books. Often online book stores will have incredible discounts available and so it is always worth shopping around to find the book that you want for a price that fits your budget.
Final Thoughts
We hope that you have found the perfect book to help you on your journey to financial stability from our list above.
Whether you are finding a way to get out of debt, preparing for retirement or generally wanting to take control of your finances and your assets there is a book out there for you.
Everyone has a different financial situation and so it is essential that you apply the teachings to books to your situation.
There is no magic spell unfortunately but each of the above books will help you to reach your financial goals giving you applicable useful tips and knowledge on how to change your mindset towards money management.
Last update on 2024-04-25 / Affiliate links / Images from Amazon Product Advertising API