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Favorite beginner-level books on finances, budgeting, investing?


Greta
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Lately I've been thinking about some of the things that I wish someone had explained to me when I was the age that my daughter is now (15). One of them is an area in which I am still far from savvy: money management. My husband is the money guy in our family, and he's very good at it. I'd like to do some reading about these topics over the next few months to educate myself, and then have my daughter read a book or maybe two about it this summer once she's done with her 9th grade coursework. Which books would you recommend?

 

I just read Dave Ramsey's "Smart Money, Smart Kids" and we are going to implement some of his suggestions for teens. I was thinking that having her read one of his books might be good. But he has so many, I'm not sure which one is a good starting point.

 

Or, any other authors that I should look at?

 

Thanks!

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Try Smart Women Finish Rich.  It's a pretty simple introduction to concepts like compound interest, liquid vs illiquid assets, paying yourself first, how to assess your skills and ask for a raise, etc.  Good stuff for a teen girl.

 

It's also the book that talks about 'the latte factor'- explaining that if you don't spend $2 a day on a latte, you can invest it and have thousands in a short amount of time.  Some people scoff at this now since who really buys a daily latte?  But really it's a way to illustrate the value of saving due to compound interest.  Saving a $2 a day for a week doesn't get you much, saving $2 a day over 10 years and investing it conservatively will get you $10k.

 

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Try Smart Women Finish Rich. It's a pretty simple introduction to concepts like compound interest, liquid vs illiquid assets, paying yourself first, how to assess your skills and ask for a raise, etc. Good stuff for a teen girl.

 

It's also the book that talks about 'the latte factor'- explaining that if you don't spend $2 a day on a latte, you can invest it and have thousands in a short amount of time. Some people scoff at this now since who really buys a daily latte? But really it's a way to illustrate the value of saving due to compound interest. Saving a $2 a day for a week doesn't get you much, saving $2 a day over 10 years and investing it conservatively will get you $10k.

Great - thank you so much!

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I know this isn't really what you asked for but...

 

Start talking with her about money. What do you and your family spend your money on. What do you prioritize? How do you pay for wants? What, if anything, do you and your dh borrow money for? How do you feel about debt? Why do you feel that way?

 

Take her with you to the grocery store and let her do the grocerybudget for a week or month and let her cook. Call it home ec.

 

(I would make the exact same recomendation if OP had had a son lest anyone think I'm sexist :))

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I know this isn't really what you asked for but...

 

Start talking with her about money. What do you and your family spend your money on. What do you prioritize? How do you pay for wants? What, if anything, do you and your dh borrow money for? How do you feel about debt? Why do you feel that way?

This is a wonderful recommendation, and I have been having these sorts of discussions with her for awhile now, just naturally as things come up.

 

We've never told her what our actual annual household income is, or how much we have saved for retirement, things like that. My husband thinks we shouldn't, and while that's fine for now, I'm wondering if we should have a more honest talk about that stuff with actual numbers included before she starts college. She is choosing (unless she changes her mind, of course) a field of study and a career that she loves, but that doesn't pay much. So we've talked about the fact that she'll have to make sacrifices to live at that income level. But she has absolutely no idea how much more her dad makes than what she will most likely be making. That information might be beneficial!

 

Take her with you to the grocery store and let her do the grocerybudget for a week or month and let her cook. Call it home ec.

 

(I would make the exact same recomendation if OP had had a son lest anyone think I'm sexist :))

I had never thought about doing that. Great suggestion.

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I love Dave Ramsey's financial course for teens and highly recommend it. It is a DVD based course that you could watch together.  I learned a lot myself from it when I was teaching it to my kids. Very practical information that every young person should know before going out into the world  from budgeting, to retirement savings to having an emergency fund.  My kids especially loved the car buying advice he gives.

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I love Dave Ramsey's financial course for teens and highly recommend it. It is a DVD based course that you could watch together. I learned a lot myself from it when I was teaching it to my kids. Very practical information that every young person should know before going out into the world from budgeting, to retirement savings to having an emergency fund. My kids especially loved the car buying advice he gives.

I always think of books first, but my daughter would probably really enjoy a DVD more. So this is a great idea. Thank you!

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I thought of this thread today when I recieved an email from the folks at Homeschool Freebie of the Day. They gave a link for a free downloadable PDF on money management for teens. I have no idea if it is any good, but you can't beat free, right? Thought you might like to take a look. Here is the excerpt from the email, and the link to the PDF is below...

 

And here is this week's SUBSCRIBER EXCLUSIVE LINK for this week:

 

MAKING AND MANAGING MONEY FOR TEENS

Advice and Inspiration for Teens and Their Parents

by Olivia Brodock (PDF ebook)

 

A wonderful primer for tweens and teens on how to earn and manage

their own money! Topics include: saving and giving, planning ahead,

short term and long term saving, wise spending, debt, home business ideas

and more. Normally $7.95, but a FREEBIE for our subscribers this week only!

 

http://makingmanaging.s3.amazonaws.com/MakingAndManaging.pdf

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I thought of this thread today when I recieved an email from the folks at Homeschool Freebie of the Day. They gave a link for a free downloadable PDF on money management for teens. I have no idea if it is any good, but you can't beat free, right? Thought you might like to take a look. Here is the excerpt from the email, and the link to the PDF is below...

 

And here is this week's SUBSCRIBER EXCLUSIVE LINK for this week:

 

MAKING AND MANAGING MONEY FOR TEENS

Advice and Inspiration for Teens and Their Parents

by Olivia Brodock (PDF ebook)

 

A wonderful primer for tweens and teens on how to earn and manage

their own money! Topics include: saving and giving, planning ahead,

short term and long term saving, wise spending, debt, home business ideas

and more. Normally $7.95, but a FREEBIE for our subscribers this week only!

 

http://makingmanaging.s3.amazonaws.com/MakingAndManaging.pdf

Nice - thank you so much!

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It's also the book that talks about 'the latte factor'- explaining that if you don't spend $2 a day on a latte, you can invest it and have thousands in a short amount of time.  Some people scoff at this now since who really buys a daily latte?  But really it's a way to illustrate the value of saving due to compound interest.  Saving a $2 a day for a week doesn't get you much, saving $2 a day over 10 years and investing it conservatively will get you $10k.

I go over a similar problem in my university finance class.  Many of my students do buy a Starbucks coffee every day (and spend more than $2).  

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Lately I've been thinking about some of the things that I wish someone had explained to me when I was the age that my daughter is now (15). One of them is an area in which I am still far from savvy: money management. My husband is the money guy in our family, and he's very good at it. I'd like to do some reading about these topics over the next few months to educate myself, and then have my daughter read a book or maybe two about it this summer once she's done with her 9th grade coursework. Which books would you recommend?

 

I just read Dave Ramsey's "Smart Money, Smart Kids" and we are going to implement some of his suggestions for teens. I was thinking that having her read one of his books might be good. But he has so many, I'm not sure which one is a good starting point.

 

Or, any other authors that I should look at?

 

Thanks!

 

 

I used this book for my Consumer Science/Life Skills class. It's not awesome, but it's a great starting point that covers everything from budgets to car care to loading a dishwasher to the proper way to make introductions.

 

http://www.amazon.com/Life-Skills-101-Practical-Leaving/dp/0970133499/ref=sr_1_1?ie=UTF8&qid=1424658087&sr=8-1&keywords=life+skills+for+teens

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I used this book for my Consumer Science/Life Skills class. It's not awesome, but it's a great starting point that covers everything from budgets to car care to loading a dishwasher to the proper way to make introductions.

 

http://www.amazon.com/Life-Skills-101-Practical-Leaving/dp/0970133499/ref=sr_1_1?ie=UTF8&qid=1424658087&sr=8-1&keywords=life+skills+for+teens

That looks fantastic -- thank you!

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I always think of books first, but my daughter would probably really enjoy a DVD more. So this is a great idea. Thank you!

 

 

I just read Dave Ramsey's "Smart Money, Smart Kids" and we are going to implement some of his suggestions for teens. I was thinking that having her read one of his books might be good. But he has so many, I'm not sure which one is a good starting point.

DR has a high school course as well. That might be more geared for your daughter. 

 

http://www.daveramsey.com/store/prodFOUHOMEPACKCUR.html?ictid=ksbb_foundhome

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Barbara Stanny's books are excellent, esp. Prince Charming Isn't Coming: How Women Get Smart About Money.

 

Ditto Lois Frankel's Nice Girls series.

 

But really, if she reads only one book before she leaves your house, make it (as suggested above) The Millionaire Next Door.

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Barbara Stanny's books are excellent, esp. Prince Charming Isn't Coming: How Women Get Smart About Money.

I think the title alone of that one will appeal to her! She's not even remotely interested in dating at this point, and is picturing a very independent, single life. (I realize most 15 yos change their minds, of course, but I just mean that's something that will "speak to her" right now.)

 

Ditto Lois Frankel's Nice Girls series.

 

But really, if she reads only one book before she leaves your house, make it (as suggested above) The Millionaire Next Door.

Excellent, thank you!

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