Looking for recommendations on books for teens regarding personal finance/saving/investing.
Looking for recommendations on books for teens regarding personal finance/saving/investing.
Start with the Millionaire Next Door. They have to understand about living within their means before the learn about investing because otherwise you wont have money to invest.
FIFY ... :-)Originally Posted by NitroZ7
Why in the world would you want them to save for the future? They are being taught that we are all evil and that the world is going to end in the next 10 years.
Live every day like it is your last!
Believe me, I struggle with this myself. Espcially watching the downward trend in my 401k until recently.
I feel obligated to put the tools in his lap. He can make his own decisions when the time comes.
I think this current market is a great time to learn/teach. 2018 thru 2022 (except for short-lived covid crash), provided too many false illusions.
- Buy Tesla and your money will double every six months
- Why pay off debt. Borrowing money is cheap and stock market will yield 15-30% each year
- Buy Bitcoin and double money every year
- And many more examples
I think a good way to teach children (other than by example of how you personally
save and spend money) it to study a chart of the Dow from Year 2000 to now. Look at a plot of average returns per year.
This will show the dot-com crash, housing bubble, periods of tremendous annual gains, etc.
Then discuss these peaks and valleys cannot be predicted. 2019, nobody could have predicted a global pandemic or Russian invasion.
What can be shown is investing in the Stock Market over long periods of time averages a good return.
Discuss/Study the collaspe of FTX. This is current and compelling to younger age groups. They can see how highly-leveraged companies can collaspe in days. Individuals have the same experiences. Under certain circumstances and short periods of time, large returns can be generated. Very often, circumstances change and huge losses occur.
I have been explaining to our youngest daughter the difference between a Roth and Traditional IRA. 401K contributions and how to look at the different available funds.
I am not sure a book, is best. Watch Short youtube and Tiktok videos, Discuss current events, review your 401k performance on an App. They can start looking at their own Fidelity, TRowePrice, or whichever chosen App. They can see their $100 go to $70 and back to $100, then grow to $150.
The Latte Factor by David Bach EASY READ (1-2 days max)
Your Money or your Life by Joe Dominguez
The Psychology of Money by Morgan Housel
The Simple Path to Wealth by JL Collins (Great in Audiobook format for a teen)--I listen to it 2x per year at least during mid winter walks/runs
Millionaire Next Door as mentioned above
A common theme to teach children/teens in investing is the importance of maintain a savings rate while advocating for a % of "fun money". Another is to "invest from a position of strength"--having that emergency fund and paying cash for discrectionary items is a powerful flex!
appreciate the feedback.
Willing to add some U-tube channels if you have specific examples.
FastGraphs and EverythingMoney.
The Simple Path to Wealth by JL Collins
This book is about as straight forward as it gets and makes a ton of sense if you believe in compounding interest.
Graham Stephan appeals to young investors very well on Youtube..3x per week
Is he still doing videos? I thought he pulled his channel after the FTX blowup but I could be thinking of someone else.
Posted 2, 4, and 6 days ago.
Reply With Quote
