Building a Financial Foundation: Books for Young Adults

Very few people become good at managing their finances without some guidance and education. It’s not something that comes naturally as we mature into adults; it’s a skill that requires building a knowledge base and cultivating understanding. Though more and more states are adding a personal finance requirement to their high school curricula, the number of states still stands at only 39. And many of that do include financial literacy as a graduation requirement only require a half credit.

If there are young adults in your family who are graduating this summer, give them the gift of financial literacy—it will serve them for a lifetime. Here, Coldstream advisors suggest a few great books to give your young adults a strong financial foundation.

The Psychology of Money: Timeless lessons on wealth, greed, and happiness
by Morgan Housel

Award-winning writer and financial journalist Morgan Housel makes finance accessible by focusing not on numbers or data, but by sharing stories about how people make financial decisions. In this bestselling book, he explores how people think about money, managing emotions around money and risk, the power of patience, and the mindset that can lead to building and maintaining wealth. Entertaining, fast-paced, and engaging, this book is a great foundation builder for young adults.

This book comes recommended by multiple Coldstream wealth managers: Rob Young, CFP®, MBA, says it’s a great book that he has sent to clients to share with their children. Matt Sampson, CFP®, CEPA®, calls Housel a “generational talent” and notes that this book is “absolutely fantastic.”

Your Budget is Broken: Why you have month left at the end of your money
by Eric Petracca

This book is designed to help readers organize their finances so that all the right things happen automatically. The author offers straightforward, simple instructions for setting up a system that should make managing a budget and monthly expenses almost effortless.

Wealth Manager Glen Goland, JD, CFP®, suggests this book as a great book about budgeting for young people.

The Millionaire Next Door: The Surprising Secrets of America’s Wealthy
by Thomas J. Stanley, Ph.D., and William D. Danko, Ph.D

This bestselling classic identifies seven traits that appear repeatedly among those who accumulate wealth. Debunking the myths about millionaires as ostentatious and high living, the authors’ research shows that most millionaires are frugal and disciplined. The book explores what true prosperity is and how people can achieve it by building good financial habits.

Co-Founder and Team Lead Roger Reynolds, who has given this book out frequently, says, “Highest recommendation I can give to a young adult.” Wealth Manager Daniels Voyteshonock, CFP®, personally loves this book, dubbing it timeless and a great gift.

Die With Zero: Getting All You Can from Your Money and Your Life – A Revolutionary Approach to Maximizing Life Experiences Over Accumulating Wealth
by Bill Perkins

Die With Zero offers a different sort of philosophy about money, wealth, and life, promoting an approach that prioritizes experience and fulfillment. Read Coldstream’s commentary by Wealth Manager Heather Hamamoto, CFP®, CDFA®, and Chief Client Experience Officer Anne Marie Stonich, CFP®, CPA, here. Wealth Manager Anna Shaw, CFP®, also highly recommends this one!

The Indomitable Investor: Why a Few Succeed in the Stock Market When Everyone Else Fails
by Steven M. Sears

For young adults who just want the basics, this may not be the right book. But for those who are interested in a more in-depth introduction to the stock market and investing, this book offers an insider’s view of how the stock market works and how individual investors can make it work for them. Wealth Manager Anna Shaw, CFP®, recommends this one.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®. CERTIFIED FINANCIAL PLANNER™ and CFP® in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. CDFA® and Certified Divorce Financial Analyst® are trademarks of The Institute for Divorce Financial Analysts™

This article is for informational and educational purposes only and does not constitute legal, tax, or financial advice.