It doesn't matter your age, your profession, or how much money you already have – financial literacy is an essential skill for everyone.
However, it still astounds me (and has me slightly worried) about how few people take the initiative to further their financial education.
In the 2019 Canadian Financial Capability Survey they found that only 44% of Canadians “engaged in some type of financial education to strengthen their financial knowledge over the past 5 years.”
There’s definitely room for improvement in our financial education. Being financially literate can help you make better informed decisions about your finances, manage your money effectively, and plan for the future.
In the same financial capability survey, they found that those who did strengthen their financial knowledge mainly did it through reading a book or other printed material.
Good thing I have one of those that I can add to this list of the top ten financial literacy books that can help you better understand personal finance and money management.
As a side note, I’m actually not a huge reader. Two kids under five limit the amount of quiet time around the house! Thankfully, there are a lot of other reading options available that you can use to get the main points out of these books.
1. My Big Asset by Brett Roessel
Yes, I know this is a little on the nose but in all honesty, My Big Asset is a must-read for anyone who needs help managing their most significant investment — their home.
I simplify the complex world of home buying and it’s a fantastic resource to help you discover if home ownership is right for you. Discover the steps you’ll need to take toward buying a home, the emotions of home-buying, and how your mortgage can work to your advantage.
2. The Simple Path to Wealth by JL Collins
This financial literacy book offers a straightforward approach to personal finance and investing, providing readers with the knowledge and tools they need to achieve financial independence and retire early. Learn how to avoid debt, pay it off, what to invest in, how to preserve your wealth, and how to implement all of this information into real life.
3. Rich Dad Poor Dad by Robert Kiyosaki
A classic in the world of personal finance, Rich Dad Poor Dad will teach you the difference between working for your money and having your money work for you. Robert Kiyosaki writes about growing up with two dads: his real father, or "poor dad," and the dad of his best friend, his “rich dad,” explaining how both men shaped his views on money management and investing.
4. The Millionaire Next Door by Thomas J. Stanley
Based on a compilation of research on millionaires, this book reveals the secrets of America's wealthy, showing readers how they can adopt the habits and mindset of millionaires to achieve financial success. The Millionaire Next Door will teach you seven common traits of those who have accumulated wealth so that you can begin to practice them in your own life.
5. The Richest Man in Babylon by George Samuel Clason
Remaining in print after almost a century since its publication, this timeless classic uses parables set in ancient Babylon to teach essential money management principles and wealth accumulation.
6. The Total Money Makeover by Dave Ramsey
Dave Ramsey's book provides a step-by-step plan for transforming your financial life, paying off debt, and building wealth through saving and investing. By the end of this book, you’ll know how to cultivate beneficial financial habits and create a sizeable fund for emergencies and retirement.
7. Your Money or Your Life by Vicki Robin and Joe Dominguez
This financial literacy book offers a comprehensive program for financial independence, focusing on the relationship between money and personal fulfillment. Learn a nine-step plan to help you get out of debt, save money through mindfulness, and invest your savings.
8. Broke Millennial: Stop Scraping By and Get Your Financial Life Together by Erin Lowry
If you’re a struggling 20- or 30-something, Broke Millennial is a must-read! This book offers a step-by-step process for helping you go from broke to financially thriving, with practical advice on managing student loans, improving your relationship with money, and talking to your partner about finances.
9. The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness by Morgan Housel
This book explores the psychological aspects of personal finance, helping readers understand that their relationship with money isn’t only about what they know, but also about how they behave.
10. The Bogleheads' Guide to Retirement Planning by Taylor Larimore
This book offers a no-nonsense approach to retirement planning, focusing on low-cost investments, simplifying your financial life, and maximizing your retirement savings. You’ll learn more about different kinds of savings accounts and retirement plans, managing your retirement accounts, and efficient withdrawal strategies during retirement.
Do You Have Any Favourites?
I hope these books offer valuable insights, practical advice, and proven strategies to help you achieve financial success. Whether you're just beginning your financial journey or hoping to enhance your existing knowledge, these books are fantastic resources for anyone seeking to improve their economic well-being.
And if there’s a book that’s not listed here, send me a message or leave a comment. There are a lot of good resources out there that have yet to be discovered.