Financial book for 20 year old son

[sunshinecruise]

My 20 year old son is interested in learning more about finances. Does anyone have a book or website recommendation for him? I am happy that he wants to start off on the right track.
Thanks

 

[ozziejen2000]

The Total Money Makeover by Dave Ramsey

High recommend it !!

 

[DisneyBill]

Millionaire Teacher by Andrew Hallam. Well written for those just starting out. Easy quick read that hopefully will wet an appetite for the subject.

 

[vettechick99]

Actually I would sign him up for a Dave Ramsey course at a local church. You can give him a book, but being there, watching the videos, and talking with others is 100 times better. It's great information for those who want to prevent mistakes. I feel like I know a lot, but I learned quite a bit. It is a little more money, but so worth it!!

 

[teller80]

Actually I would sign him up for a Dave Ramsey course at a local church. You can give him a book, but being there, watching the videos, and talking with others is 100 times better. It's great information for those who want to prevent mistakes. I feel like I know a lot, but I learned quite a bit. It is a little more money, but so worth it!!

100%

 

[Jitzy]

An easy intro to money management and good financial sense can be found in a book titled, The Wealthy Barber

Some of the chapters may not apply to him, but they are things that should be introduced.

 

[eliza61]

What does he want to know.

If he wants to learn how to live on a budget. Any tv guru, (dave Ramsey, suze) will work.

If he is interested in learning about investments, how stocks work, how to MAKE money with your money. Dave and Suze are the last people you want to watch.

For that I like
kliplingers.com (very easy to learn the basics)
oblivious investor
Fool.com (they actually make it fun, I mean their slogan is "to educate, amuse and enrich")

 

[vettechick99]

What does he want to know.

If he wants to learn how to live on a budget. Any tv guru, (dave Ramsey, suze) will work.

If he is interested in learning about investments, how stocks work, how to MAKE money with your money. Dave and Suze are the last people you want to watch.

For that I like
kliplingers.com (very easy to learn the basics)
oblivious investor
Fool.com (they actually make it fun, I mean their slogan is "to educate, amuse and enrich")

Good point.

 

[Soben]

Your Money or Your Life

It's an old school book, (been redone in 200X to make it more relatable) that really inspired a lot of financial advice that came later. The premise is that when you work you are trading your life for $$. And since it's your life you want to be responsible with your finances.

Beyond that, Dave Ramsey, Suze Orman (I think she has one specific to that age), David Bach or Gail Vaz-Oxlade all have easy to read/get books. They'll give you the basics - avoid debt (to varying degrees, some will allow student loans/car notes, Dave Ramsey won't), save, save, compound interest, and some basics on where to start investing.

It's great that he's interested, just paying attention is 90% of the battle with customer finance.

 

[crisi]

Personal Finance for Dummies is the ideal starting place. It goes over everything from budgets to insurance to investing (unlike Ramsey, the investing advice is good). The advice is sound and pertinent to a 20 year old in school or a 40 year old with a family and debt, or a 65 year old managing his retirement. Tyson is a CPA and CFP (if I remember correctly).

(I'd add bogelheads to when he wants to learn to invest).

Total Money Makeover is inappropriate if he doesn't need to be made over - its written with the assumption that you have debt, you have a family, and you are struggling to pay bills. You said you are happy he wants to start on the right track, get him a book that will assume a start. TMM is fine for "I never want to be in a position that these people had to dig themselves out of" but if he isn't digging, he doesn't need a shovel.

 

[A_Princess'_Daddy]

Sorry, inadvertent double post.

 

[Jess30]

I like the motley fool books.

Also maybe a gift card for YNAB software.

 

[A_Princess'_Daddy]

I assume you mean "personal finance" and not finance in the vein of a career choice? In that case, I recommend Rich Dad, Poor Dad as a more complete approach to finance than the others mentioned here. I personally think Dave Ramsey does as much harm as good with his approach and does little to create an actual understanding of how personal finance works. Personal finance is about much more than debt, in my experience and opinion.

 

[trinchick]

When I graduated from college I read:

Get a Financial Life: Personal Finance in Your Twenties and Thirties by Beth Kobliner

I see that it was updated in 2009.

This is a good primer. It teaches you how to get started with mutual funds, etc. and also preaches to the benefits of early saving and avoiding consumer debt. I especially liked the charts that show examples of the benefits of starting to save in your 20s vs 30s, 40s, etc.

They have tables that show the difference in cost of financing items instead of paying cash. They discuss the importance of having the appropriate insurance and how to purchase it wisely without being prey to strong-arm sales tactics. It's the type of stuff you know but when you see the actual numbers really makes you think. Also shows how to start a good filing system. Gives advice for buying first home and limiting taxes.

Completely nuts and bolts but very motivating and a great way to get a young person on the right track.


ETA: If you go to the amazon link for the book and do the "Look Inside", they give you a great sample of the book - including the "crib notes" at the beginning that essentially summarize the key points of the book. Definitely worth a look - for both you and DS - even if you end up selecting another guide.

 

[shana398]

Definitely send him to a Dave Ramsey class at your local church. If not, at least refer him to his website and books. It is very well worth it especially for a young person!

 

[beansmom]

What does he want to know.

If he wants to learn how to live on a budget. Any tv guru, (dave Ramsey, suze) will work.

i disagree...suze orman actually advocates debt in some situations. Dave Ramsey is a cash only kinda guy.

I second (third) the idea of sending him thru Financial Peace University (you can find a location on www.daveramsey.com ). It made a world of difference for us. The class interaction was very helpful and kept us motivated.

 

[A_Princess'_Daddy]

i disagree...suze orman actually advocates debt in some situations. Dave Ramsey is a cash only kinda guy.

I second (third) the idea of sending him thru Financial Peace University (you can find a location on www.daveramsey.com ). It made a world of difference for us. The class interaction was very helpful and kept us motivated.

Which is exactly why Dave Ramsey is so dangerous, in my opinion. Debt is neither inherently good nor bad. It is a tool, only, and like any tool it can be used for good things or bad. Most specifically, debt is a lever (which is where the term leverage comes from when it comes to finance) that can make things possible, but a person needs to know whether the thing they are leveraging is positive or negative. To not understand that, in my opinion, is deeply dangerous and creates a completely one-sided understanding of personal finance.

OP, no book out there is going to tell your son to run out and put a bunch of junk on a credit card, to buy a car he cannot afford, etc., but again in my opinion (and in the opinion of most people in the financial industries) there is a lot more to finance than creating a fear of debt.

 

[crisi]

Which is exactly why Dave Ramsey is so dangerous, in my opinion. Debt is neither inherently good nor bad. It is a tool, only, and like any tool it can be used for good things or bad. Most specifically, debt is a lever (which is where the term leverage comes from when it comes to finance) that can make things possible, but a person needs to know whether the thing they are leveraging is positive or negative. To not understand that, in my opinion, is deeply dangerous and creates a completely one-sided understanding of personal finance.

OP, no book out there is going to tell your son to run out and put a bunch of junk on a credit card, to buy a car he cannot afford, etc., but again in my opinion (and in the opinion of most people in the financial industries) there is a lot more to finance than creating a fear of debt.

Not to mention that when you get to the investing side, Ramsey's advice is on par with a monkey flinging poo.

Dave Ramsey is inspirational at getting out of debt. As a finance guy, he is not good. Hopefully at 20, you don't need Dave Ramsey because you don't have debt - or not the type that is an anchor around your neck. You need to learn to budget (my favorite is All Your Worth by Elizabeth Warren, but several good ones have been mentioned)

 

[eliza61]

Which is exactly why Dave Ramsey is so dangerous, in my opinion. Debt is neither inherently good nor bad. It is a tool, only, and like any tool it can be used for good things or bad. Most specifically, debt is a lever (which is where the term leverage comes from when it comes to finance) that can make things possible, but a person needs to know whether the thing they are leveraging is positive or negative. To not understand that, in my opinion, is deeply dangerous and creates a completely one-sided understanding of personal finance.

OP, no book out there is going to tell your son to run out and put a bunch of junk on a credit card, to buy a car he cannot afford, etc., but again in my opinion (and in the opinion of most people in the financial industries) there is a lot more to finance than creating a fear of debt.

Not to mention that when you get to the investing side, Ramsey's advice is on par with a monkey flinging poo.

Dave Ramsey is inspirational at getting out of debt. As a finance guy, he is not good. Hopefully at 20, you don't need Dave Ramsey because you don't have debt - or not the type that is an anchor around your neck. You need to learn to budget (my favorite is All Your Worth by Elizabeth Warren, but several good ones have been mentioned)

In fact there is a growing back lash on Dave from many in the investment world because they feel his advice borders on dangerous.

I totally agree with Crisi, op said her son is just starting out. So IMO what he needs to learn is how to use the tool of debt properly.

He needs to learn how to qualify for mortgages, how apr works, what are the traps to financing. He can't learn that imo if he follows the advice that all debt is bad. If my sons have a student loan, I want him to understand the cost of that money. Telling him that student loans are horrible ain't gonna help him.

A princess Daddy said it best. except I would change it to "money". Money is neither inherently good or evil. It is how you handle it. I want my kids to learn how to handle debt, how to invest money, how to save and spend. The same way I wanted them to learn how to drive a car.
I want them to learn how to drive safely, not the lesson that the way to stay safe is to not drive.

edited to add: I am neither a Dave Ramsey supporter or detractor. by the grace of god I've never needed his services. I think he is a good motivational person but in no way qualified to be a financial planner or investor. I totally applaud him for those he has helped.

 

[runwad]

My DD just turned 18 on Sunday. The credit union where she has her savings account sent her for her birthday, "Money Rules, The Simple Path to Lifelong Security," by Jean Chatzky. It's a very simple read, discusses a wide range of topics in a page or two for each "rule". The total page count is 109. She wrote it for kids starting out. Of course my DD has no interest in this topic yet. Hopefully as she prepares for college next year she'll start to get a little more interested in personal finance.