The hardest part about being young and figuring out your finances is finding the right resources. My interest in saving money began in elementary school when I started collecting and cashing in pennies. But figuring out how to go from counting pennies to stacking dollars eluded me, especially without the proper financial guidance.
The problem with most personal finance books is they’re either littered with jargon or they’re written for people with mortgages, salaried jobs, or some sort of established financial plan, even if it is in shambles. Unfortunately, this leaves a void for teens and 20-somethings.
Here are a few reads that helped me start to understand how money works in the simplest terms. Enjoy!
The Money Book for the Young, Fabulous, & Broke by Suzy Orman: This read
came in handy when I was shopping around for my first credit card in college. Learning the difference between average daily balance and two-cycle average daily balance can save you quite a bit of money and help you decide what credit card is a best for you. Orman also covers car shopping, student loans, and career tips regarding salary and office workload.Orman delivers her usual brand of boldness to young people in this book with her straight-talking money advice. And here’s the best part: The book is set up like a reference guide, meaning you don’t have to read it cover to cover (although it is highly recommended.) Each chapter is broken down by topic and later by subtopic, with corresponding page numbers.
Rich Dad Poor Dad by Robert
Kiyosaki: I first read this book in high school, and it’s the first money book I ever read. It’s a bit apropos since Kiyosaki seeks to challenge some of the basic career/money principals most of us grew up with such as “Stay in school and get good grades so you can find a safe, secure job.â€Kiyosaki weaves in financial lessons he learned from his “rich dad,†an entrepreneur, with an 8th grade education who eventually became one of the richest men in Hawaii, and his “poor dad,†a highly educated professor with little financial savvy.
He argues that part of the reason we’re told to do well in school with the plan of getting a job is out of fear. He delves into the psychology of a successful business person versus that of a middle class employee. Entrepreneurs think differently in that it takes a certain level of fearlessness to strike out into the unknown and build a business scratch.
If you’re still in school, reading this along with your regular course studies is a great way to reevaluate your current work and analyze how it fits in to the grand scheme of your short-term and long-term goals.
Personal Finance for Dummies by Eric Tyson: If you’ve read my past blog posts you know I’m a huge fan of the … for Dummies franchise. From Small Business Kit for Dummies to Investing for Dummies, these books are phenomenal at breaking down complex subjects into the simplest of terms. Personal Finance for Dummies is no different.
For any young person trying to decipher financial jargon, this book is perfect. Like The Money Guide for the Young Fabulous & Broke, it’s broken down like a reference guide. It covers different forms of investments including stocks and real estate investment trusts (REITs), or diversified real estate investment companies that purchase and manage rental real estate for investors. This may be a good investment for someone who doesn’t want to be a landlord but is interested investing in real estate. The book also includes worksheets to help you figure out your spending habits, where you can trim expenses, and what action you can take to set personal finance goals.
If you’ve read any of these books, share your thoughts. Also, feel free to recommend your favorite personal finance book.
Renita Burns is the editorial assistant at BlackEnterprise.com.