Books that Help Build a Financial Foundation

Andrea Schmutz, USU Extension Assistant Professor

​April is simply a glorious month; one that truly offers something for everyone. For those who love the warm sun on their skin, April kindly ushers in sunny days as the cold winter days move on their way. For those who love the beautiful colors and fresh scent of blooming flowers, April encourages new growth and vibrant hues to break through the tail end of winter. And how about those who are looking for ways to improve their personal finances? April brings us Financial Literacy Month with encouragement to engage in various activities that will direct us on our path to financial wellness. April is truly a powerhouse month!
 
If you’ve been following the 2022 Finance Calendar (free download) you will notice that one of the challenges for April is “celebrate by finding a book, class, podcast, etc. to further your personal finance knowledge.” While that sounds simple enough, sometimes it’s still hard to know where to begin. To help alleviate unnecessary stress, here are a few suggestions for books that cover a myriad of personal finance lessons.

Some of the most remembered lessons in life are couched in story form and sometimes referred to as parables. These stories utilize imagery and metaphors that the audience can easily recognize, thus enabling the reader to better understand and remember difficult or complex concepts through relatable terms. Personal finance concepts often fall in the “difficult” or “complex” category simply because not everyone is born with an innate understanding of such concepts - they must be learned. For the person who learns best from stories, here are a couple finance books written as enjoyable stories while imparting great wisdom and tips for improving financial wellness:
 

• The Richest Man in Babylon by George S. Clason - Considered a classic of personal finance advice, this book teaches timeless financial principles through a collection of parables set in ancient Babylon over 4000 years ago. In print for over 100 years,  The Richest Man in Babylon includes advice about the “Seven Cures (for a lean purse)”, or how to generate money and wealth, and “Five Laws of Gold”, which includes discussions about paying yourself first, living within your means, investing in what you know, the importance of long-term saving, and home ownership.
• The Latte Factor by David Bach - Set in modern times, this book tells the story of a fictional character living in Brooklyn and struggling with commonplace financial problems until she meets an unusual teacher in the local latte shop. Bach shares three secrets to financial freedom accompanied with tips to help the reader set and achieve financial goals. The best takeaway? Realizing that you are already richer than you think!

 
Considering that not everyone learns the same way, a couple other popular personal finance books that provide an interesting and informative read include:

• The Millionaire Next Door by Thomas J. Stanley and William D. Danko - The authors outline seven common denominators of those who build wealth and they include anecdotal stories and statistics from their research to support their claims. An interesting part of the book explains that a majority of America’s millionaires are actually first generation “rich” - they did not inherit their wealth - which helps the reader understand the realistic attainability of gaining wealth and reaching financial goals through application of certain financial best practices.
• The Automatic Millionaire by David Bach - A simple, easy read, this book explains basic financial principles in an easy “how to” format. Bach begins by sharing the story of an average American couple whose joint income did not exceed $55,000 per year and yet they managed to own two homes debt-free, put two kids through college, and retire at 55 with over $1 million in savings. He explains the “magic” of automating savings and illustrates how a person can reach financial goals on a modest salary.

 
As we celebrate Financial Literacy Month, grab a good finance book and set a goal to apply at least one of the principles taught in the book. If you have a favorite book that has helped you on your financial journey, share it in the comments - we’d love to hear about it!
 
Parting thought: The more that you read, the more things you will know. The more that you learn, the more places you’ll go!”   - Dr. Seuss