The Gifts that Keep on Giving
With the holiday season fast approaching, some of us may be struggling to find gifts ideas for the younger members of our family. While young children and teens will gladly share what’s on their gift lists with anyone within hearing distance, it becomes a little more challenging to find that special gift for young adult children and grandchildren.
Why not give them a gift with great lessons that can enrich their lives for years to come? For example, the concept of compound interest is a core principle in personal finance that if applied early and consistently will prove to be rewarding over a lifetime. There are many other life experiences that younger generations will encounter, and books are great ways of providing perspective as they will inevitably face similar challenges that past generations have faced.
We have highlighted five book ideas that we would recommend for the millennial members in your family that have an interest in personal finance or investing. The books all raise awareness on key personal finance and investing concepts, and we are certain will have an impact on how they manage their finances going forward.
1. The Psychology of Money by Morgan Housel
As a subject matter the world of finance and investing can be a little dry. Fortunately, Morgan Housel does an outstanding job in his The Psychology of Money that delves into 20 stories that touch different facets of investing. Housel bridges the subjects by bringing in different disciplines such as physics, history, and technology to convey the investment lessons. Whether it be the value of compounding in how Warren Buffett accumulated most of his wealth after he turned 65, to how real wealth is achieved by those who have control over their time. At only 250 pages the book packs quite a few valuable lessons and Housel’s fluid style makes it an easy read for even a novice investor. The book will provide readers with a greater appreciation of how impactful our behavior is in our decision- making process and financial well-being.
2. I Will Teach You to be Rich by Ramit Sethi
Don’t be misled by the attention-getting title of Ramit Sethi’s I Will Teach You to be Rich. The book does not provide any get rich schemes, nor does it discuss the hottest investment trends. Instead, Sethi lays out a 6-week plan for young adults to align their financial affairs so they can achieve financial wealth. The book is ideal for someone who has recently entered the workforce and feels overwhelmed with the decisions related to paying down debts, saving to purchase a first home, and making his or her first investments. The book provides practical advice and speaks directly to its young audience with a mix humour and candour. Beyond the simple tools to building wealth, Sethi challenges readers on incorporating what they truly value into making decisions so they can live a “richer life.”
3. Reminiscences of a Stock Operator by Edwin Lefèvre
The third book on our list would be a great gift idea for a young family member with ambitions of becoming a trader. While it was published nearly a century ago, the lessons still ring true, particularly in a year when a new generation of investors were actively trading everything from shares in GameStop to non-fungible tokens. Reminiscences of a Stock Operator by Edwin Lefèvre is a must read for anyone interesting in understanding the peaks and valleys of investing. The book is a fictionalized biography of famous stock trader Jesse Livermore, who made and lost great fortunes investing in the stock market in the early 20th century. Lefèvre tells the story of young Larry Livingston who hustles to make a fortune using a variety of different stock trading strategies with no rules and little discipline. Though the stories in the book do not resemble the investing world today, the human emotions of fear, greed and hope that were common in traders a century ago are very much the same today. An entertaining book that tells some fascinating stories and provides notable examples on the differences between investing and speculating.
4. The Wisdom of Finance by Mihir A. Desai
Rob Kerr’s favorite book on finance is The Wisdom of Finance, by Mihir A. Desai, a Harvard Business School professor who draws from his last lecture to the graduating class in 2015. With incisive wit and irony, Desai uses a rich knowledge of literature, film, history and philosophy to explain the inner workings of finance.
5. Smart Women Finish Rich by David Bach
Mrs. Kerr nominates Smart Women Finish Rich, a U.S based financial planning book by David Bach that every young woman should read because women usually have a longer lifetime to plan for, and sometimes less earnings to put into savings
While all these books may not have the same appeal of the latest Apple iPhone or a designer handbag, we are confident your loved ones will gain valuable personal finance ideas that will reap rewards for decades to come. A Happy and Health Holidays to all!