Basic Book Recommendation

[REWahoo]

I'll add my personal observation consistent with Bob's thoughts. If someone had given me an investing book in my 20s I wouldn't have read it. Sci Fi yes, finances no.

I remember my cousin giving me all sorts of women's conciousness books when I was in my 20s. Didn't read them either and I am a feminist. At least I guess so, I never read the manual.

I gave my two thirtysomething married daughters ESR Bob's "Work Less, Live More" book last year and the reception was less than overwhelming. They are both LBYM types, who don't have credit card debt and contribute to 401k's, but their lives are so consumed with working and raising families they have little interest in devoting what spare time they have to learning about investing and personal finance. It's all about priorities, and until they are ready...well, you know all about leading a horse to water.

 

[greg]

I'll add my personal observation consistent with Bob's thoughts. If someone had given me an investing book in my 20s I wouldn't have read it. Sci Fi yes, finances no.

I remember my cousin giving me all sorts of women's conciousness books when I was in my 20s. Didn't read them either and I am a feminist. At least I guess so, I never read the manual.

Ditto. If you're not interested you're just not interested. A serious two hundred page non-fiction book looks like a mountain sometimes, especially to a younger fellow with . . . um . . . hormones that require regular activation. But . . . how about a magazine subscription about money and investing for young men? Maybe something like Money or one of the many others on the magazine racks that not only provide shorter articles about investing but also containing ads with young gentlemen glancing at their Rolexes while getting into their BMWs. Or with pictures of young ladies in horn rim glasses pouting over a martini. Short breezy articles about investing in between such consumer youth fare might actually get looked at. Just a possible alternative.

 

[Nords]

2) It's perfectly reasonable (and maybe even desirable) if my kids aren't thinking about retirement in their 20s.
They may not always appreciate unsolicited advice about how they can become more like us.

I'll add my personal observation consistent with Bob's thoughts. If someone had given me an investing book in my 20s I wouldn't have read it. Sci Fi yes, finances no.

We've given our kid the basic financial skills. She also keenly appreciates the compounding example where one kid starts an IRA at age 16, quits contributing at age 26, and still has a balance that runs away from the IRA of the kid that didn't start until age 26 and tried to catch up. Not that Dad loaded the spreadsheet or anything.

So I figure it's pushing it to ask her pick ETFs or stocks, decide on an asset allocation, or plow through a few FIRECalc scenarios.

When the students are ready they can darn well e-mail their questions to us teachers...

 

[sgeeeee]

My brothers are both getting a copy of Engineering Your Retirement this Christmas.

 

[peggy]

I don't have kids, but I do have thirteen nieces and nephews, most of whom are getting toward that young adult stage (i.e., college, first jobs).

When the topic of money has come up in conversation at family gatherings, DH mentions that we're on the path to early retirement, and we're happy to answer any questions that any of the family may have.

So far, two of the nephews have said that when they get out of college and get their first real jobs, they'll ask us. They've seen their parents (who are in their mid-fifties) starting to scramble for retirement, and then they see us (I'm 38, DH is 45) saying, "Right, we'll be able to retire in about five years. All it takes is a little savings and planning, and the younger you start the sooner you'll get there."

These are NOT forced discussions or lectures, just the facts of our lifestyle and what our nieces and nephews have been seeing in their own families adding up.

So count me in the "they'll ask you when they're ready" camp.

That said, if I were going to give them a financial book at their age, I'd choose either ESR_Bob's book or something else written in a conversational style. I didn't care for The Richest Man in Babylon when I read it, but apparently I'm in the minority, so it might be good, as well.

 

[Spanky]

http://www.retireearlyhomepage.com/rebooks.html

http://www.diehards.org/readbooks.htm

 

[Alex]

I'm with Alex - The Richest Man in Babylon should be required reading for high school students.

I give this book as a gift to someone every year, and they always have great things to say about it. It really should be REQUIRED reading for HS students.

 

[wheel9]

Thanks everyone for your recommendations - I got the following -

The Bogleheads' Guide to Investing
The Automatic Millionaire
The Millionaire Next Door

While young boys don't want to read these types of books at their age, they will have an incentive to read these, as this is part of their gift - a follow-up discussion of the concepts found in the book will trigger the rest of their gift! Nothing like old fashioned bribery to get them to do the right thing. They can read it sooner and collect the gift faster, or take their time and wait. My guess is that they will try and get through it fast!

I only wish someone did this for me at that age. As others have mentioned, this is one area where are schools are failing our kids - basic financial concepts should be taught in schools.

I expect to be spending more time here as I am looking to cut the cord in about a year! Thanks and Happy Holidays to all!

 

[REWahoo]

Vanguard just came out with a list of recommended books for the investor on your holiday gift list. Many familiar titles on the list...and a few that were new to me.

 

[SlowTwitcher]

I've always been irritated by the school's irresponsibility regarding finances.
If we're going to teach quadratic equations and retrograde motion shouldn't
The Rule of 72 or the fact that 'time' is their greatest controllable factor towards
wealth be taught as well. Everyone by senior year has probably heard, "your house is your best investment", "you'll always have a car/mortgage/tax payment so just get used to it"' or the best of all, "you need a credit card in case of emergencies".

I talk to my 11 year old about money and investing ideas fairly regularly... of course
he's a chip off the old block. He does seem fascinated then runs off to video games,
but at least I'm hoping some of it sticks!

Anyway, I may have found my ER calling, maybe even parttime income. If I can just
convince the school's to give me life benefits rather than salary!

 

[Arc]

I've always been irritated by the school's irresponsibility regarding finances.
If we're going to teach quadratic equations and retrograde motion shouldn't
The Rule of 72 or the fact that 'time' is their greatest controllable factor towards
wealth be taught as well. Everyone by senior year has probably heard, "your house is your best investment", "you'll always have a car/mortgage/tax payment so just get used to it"' or the best of all, "you need a credit card in case of emergencies".

I talk to my 11 year old about money and investing ideas fairly regularly... of course
he's a chip off the old block. He does seem fascinated then runs off to video games,
but at least I'm hoping some of it sticks!

Anyway, I may have found my ER calling, maybe even parttime income. If I can just
convince the school's to give me life benefits rather than salary!

I could not agree more. As companies continue the trend away from offering pensions, educating kids about finances and especially the benefits of starting early - even with small amounts - is more critical than ever before. Any chance I get, I sit people down and show them the Rule fo 72 - it gets their attention. If we cannot count on the schools to do this, then how do we get the word out - on a large enough scale to make a difference?

 

[simple girl]

I could not agree more. As companies continue the trend away from offering pensions, educating kids about finances and especially the benefits of starting early - even with small amounts - is more critical than ever before. Any chance I get, I sit people down and show them the Rule fo 72 - it gets their attention. If we cannot count on the schools to do this, then how do we get the word out - on a large enough scale to make a difference?

Volunteer to go in and give talks at local high schools

I can see it now...an Early Retirement Education Association....spreading the word

 

[Nords]

I've always been irritated by the school's irresponsibility regarding finances.

I could not agree more. As companies continue the trend away from offering pensions, educating kids about finances and especially the benefits of starting early - even with small amounts - is more critical than ever before.

Dang, it's almost as if the government seems to want the public to be financially ignorant and pay extra taxes.

If the schools don't teach financial management to our kids, how can they expect the parents to do it?!? Oh, wait, financial managment is just basic math and doesn't require partial differential equations...

Seriously, are any of you parents expecting the schools to show your kid how to balance a checkbook when they're not even allowed to teach how to put on a condom or shoot a firearm?

 

[Arc]

Dang, it's almost as if the government seems to want the public to be financially ignorant and pay extra taxes.

If the schools don't teach financial management to our kids, how can they expect the parents to do it?!? Oh, wait, financial managment is just basic math and doesn't require partial differential equations...

Seriously, are any of you parents expecting the schools to show your kid how to balance a checkbook when they're not even allowed to teach how to put on a condom or shoot a firearm?

I don't worry about my kids. I do worry a lot about most of the kids - who don't have parents who with knowledge in this area - those are the kids who we will be taking care of down the road. And yes I'd like to see the schools take some of that money I send them and spend it on something important.

 

[Nords]

Scott Burns has a few more suggestions in this week's column:
http://assetbuilder.com/?p=362#more-362

Tobias' "Only Investment Guide"
"Getting Rich in America"
"Four Pillars"
"Boglehead's Guide"
"Birth of Plenty"

And, surprisingly for Scott Burns,

"How To Retire Happy, Wild, & Free"...

BTW for those of you still working through post-FIRE survivor's guilt and looking for a good cover story, you could try Scott's "Chief Investment Strategist for AssetBuilder, Inc."

 

[Alex]

Dang, it's almost as if the government seems to want the public to be financially ignorant and pay extra taxes.

If the schools don't teach financial management to our kids, how can they expect the parents to do it?!? Oh, wait, financial managment is just basic math and doesn't require partial differential equations...

Seriously, are any of you parents expecting the schools to show your kid how to balance a checkbook when they're not even allowed to teach how to put on a condom or shoot a firearm?

I always wear a condom and shoot my gun whenever I balance my checkbook. ......

 

[TromboneAl]

I've always been irritated by the school's irresponsibility regarding finances.

I have been irritated, too. But let's say you were able to convince the local school board to have a seminar in money management and investing. You'd say "I'd be happy to come in and teach the kids about investing." But someone on the board would say, "You don't have any credentials," and they would bring in a certified financial planner, who would teach them that the kids need to pay someone 1.5% to buy load funds for them.