10+ Best Financial Books for 20-Year-Olds w/ Exercises (2024)

Hey there! Navigating your finances in your twenties can be a bit of a puzzle, but don't worry, we've got you covered. Whether you're just starting to manage your own money or looking to deepen your financial knowledge, our roundup of financial books for 20-year-olds is here to guide you. From practical advice to innovative money management strategies, these reads are tailored just for you. Keep reading to discover which books made the list and how they can help set you up for a prosperous financial future.

Fun Financial Books for 20-Year-Olds

• Rich Dad Poor Dad by Robert T. Kiyosaki
  • Genre(s): Personal Finance, Self-help
  • Synopsis: This book contrasts the financial philosophies of the author's two "dads": his biological father, who was well-educated but financially unstable, and the father of his best friend, who was a dropout but became a multimillionaire. It explores the importance of financial education and investing.
  • Why we recommend this book: It challenges conventional wisdom on finance and encourages thinking about assets and liabilities in a way that is accessible and engaging, making it a great starting point for young adults to reshape their views on money.
  • Perfect for: Young adults beginning to learn about personal finance and those interested in developing a wealth mindset.

• I Will Teach You To Be Rich by Ramit Sethi
  • Genre(s): Personal Finance, Self-help
  • Synopsis: This book provides a six-week program aimed at young adults to get their financial lives in order. It covers banking, saving, budgeting, and investing, all while focusing on spending money on what you love.
  • Why we recommend this book: It offers straightforward, practical advice that fits well with the lifestyle and goals of 20-year-olds looking to make smart financial decisions without giving up what they enjoy.
  • Perfect for: Those who want a no-nonsense approach to finances that also accommodates enjoying life's pleasures.

• The Total Money Makeover by Dave Ramsey
  • Genre(s): Personal Finance, Self-help
  • Synopsis: Dave Ramsey presents a bold approach to financial freedom through his seven-step plan that includes paying off debt and building wealth. The book is filled with success stories to inspire readers.
  • Why we recommend this book: It's a motivational read that empowers young adults to take immediate action towards financial independence, emphasizing the avoidance of debt as a key strategy.
  • Perfect for: Individuals who are looking to get out of debt and prefer a structured plan to secure their financial future.

• The Psychology of Money by Morgan Housel
  • Genre(s): Personal Finance, Psychology
  • Synopsis: Through short stories exploring the strange ways people think about money, this book highlights how our behaviors are often the biggest determinants of financial success.
  • Why we recommend this book: It delves into the psychological underpinnings of financial decisions, making it a fascinating read that can help young readers understand and manage their own financial behaviors more effectively.
  • Perfect for: Those interested in the intersection of psychology and finance and anyone looking to improve their emotional relationship with money.

• You Are a Badass at Making Money: Master the Mindset of Wealth by Jen Sincero
  • Genre(s): Personal Finance, Self-help
  • Synopsis: This book combines personal anecdotes and bite-sized, actionable steps to help readers overcome their financial insecurities and achieve their monetary goals.
  • Why we recommend this book: It's a fun and engaging read that uses humor and sass to inspire confidence, making financial wisdom accessible and entertaining.
  • Perfect for: Young adults who enjoy a humorous take on serious topics and are looking to change their mindset about money.

Educational Financial Books for 20-Year-Olds

• Your Money or Your Life by Vicki Robin and Joe Dominguez
  • Genre(s): Personal Finance, Self-help
  • Synopsis: This book offers a nine-step program for transforming your relationship with money and achieving financial independence. It encourages readers to evaluate their expenditures in terms of the hours spent earning money, and to find new ways to live well for less.
  • Skills and subjects this book improves: Financial planning, frugality, sustainability, life satisfaction
  • Why we recommend this book: It provides a holistic approach to finances that goes beyond simple budgeting to include making life choices that align with your values.
  • Perfect for: Those seeking a practical and philosophical approach to personal finance and anyone interested in minimalism.

• The Millionaire Next Door: The Surprising Secrets of America's Wealthy by Thomas J. Stanley and William D. Danko
  • Genre(s): Personal Finance, Economics
  • Synopsis: This book reveals that the majority of millionaires live below their means and choose to accumulate wealth instead of displaying high social status. It is based on extensive surveys and interviews with real millionaires.
  • Skills and subjects this book improves: Saving, investing, frugal living, behavioral finance
  • Why we recommend this book: It challenges the common stereotypes about wealth and provides evidence-based insights into the habits that can lead to accumulating wealth.
  • Perfect for: Readers interested in realistic strategies for wealth accumulation and those curious about the true lifestyles of the wealthy.

• The Index Card: Why Personal Finance Doesn’t Have to Be Complicated by Helaine Olen and Harold Pollack
  • Genre(s): Personal Finance, Self-help
  • Synopsis: The premise of this book is that everything you need to know about managing your money can fit on an index card. It offers ten simple rules for financial success, debunking many myths of money management.
  • Skills and subjects this book improves: Budgeting, investing, financial decision-making
  • Why we recommend this book: It simplifies personal finance into manageable pieces of advice that anyone can follow, making it less daunting for beginners.
  • Perfect for: Those who feel overwhelmed by complex financial advice and want straightforward, practical tips.

• Get a Financial Life: Personal Finance in Your Twenties and Thirties by Beth Kobliner
  • Genre(s): Personal Finance, Self-help
  • Synopsis: This book provides a comprehensive guide for young adults to manage their finances, including dealing with debt, avoiding financial pitfalls, and making smart investments.
  • Skills and subjects this book improves: Debt management, investing, insurance, real estate
  • Why we recommend this book: It's tailored specifically to the financial challenges and opportunities faced by young adults today, with up-to-date information on modern financial tools.
  • Perfect for: Millennials and Gen Zers looking for a relevant and thorough primer on personal finance.

• Financial Freedom: A Proven Path to All the Money You Will Ever Need by Grant Sabatier
  • Genre(s): Personal Finance, Entrepreneurship
  • Synopsis: Written by a self-made millionaire who retired at 30, this book teaches how to create profitable side hustles, save money through better tactics, and invest in a smarter way.
  • Skills and subjects this book improves: Entrepreneurship, investing, saving, financial independence
  • Why we recommend this book: It offers a fresh perspective by someone who achieved financial independence early in life and provides actionable strategies that go beyond traditional employment.
  • Perfect for: Aspiring entrepreneurs and anyone interested in achieving financial independence at a young age.

Challenging Financial Books for 20-Year-Olds

• Thinking, Fast and Slow by Daniel Kahneman
  • Genre(s): Psychology, Economics, Decision-Making
  • Synopsis: Nobel laureate Daniel Kahneman explores the ways in which we think, dividing it into two systems: fast, intuitive thinking, and slow, deliberate thinking. This book reveals how our minds are tripped up by error and prejudice (even when we think we are being logical).
  • Why this book is challenging: It delves deep into cognitive psychology and economic theory, presenting complex ideas about how our minds work, which can be quite challenging to grasp fully.
  • Why we recommend this book: It offers profound insights into decision-making and bias, which can significantly affect financial and other life decisions.
  • Perfect for: Readers interested in psychology and economics, and those who want to understand the complexities of human thought processes.

• Misbehaving: The Making of Behavioral Economics by Richard H. Thaler
  • Genre(s): Economics, Behavioral Science
  • Synopsis: Richard H. Thaler, a pioneer in behavioral economics, narrates the rise of behavioral economics. The book challenges the traditional economic theory that assumes rational decision-makers and shows how human quirks systematically affect individual decisions as well as market outcomes.
  • Why this book is challenging: It critiques fundamental economic principles and introduces new, sometimes counterintuitive, concepts that challenge the reader to rethink economics and decision-making.
  • Why we recommend this book: It provides a new perspective on economics that incorporates human behavior, which is crucial for understanding real-world financial markets and personal finance.
  • Perfect for: Economics students and young professionals interested in how psychology affects economic theory and practice.

• Capital in the Twenty-First Century by Thomas Piketty
  • Genre(s): Economics, Social Policy
  • Synopsis: This book examines wealth and income inequality in Europe and the United States since the 18th century. Piketty argues that the rate of capital return in developed countries is persistently greater than the rate of economic growth, which leads to wealth inequality.
  • Why this book is challenging: It involves complex economic theories and a deep analysis of historical data, which can be demanding for readers without a background in economics.
  • Why we recommend this book: It's a seminal work that offers a deep understanding of the forces shaping economic inequality, an issue that will significantly affect the financial future of young adults.
  • Perfect for: Readers interested in understanding global economic trends and issues of inequality.

• The Black Swan: The Impact of the Highly Improbable by Nassim Nicholas Taleb
  • Genre(s): Philosophy, Business, Economics
  • Synopsis: This book focuses on the extreme impact of rare and unpredictable outlier events—and the human tendency to find simplistic explanations for these events, retrospectively. Taleb calls this the Black Swan theory.
  • Why this book is challenging: The book challenges readers to rethink their approach to risk, probability, and uncertainty, using a philosophical and somewhat abstract approach.
  • Why we recommend this book: It encourages critical thinking and skepticism, particularly in the context of financial systems and markets, which are often impacted by rare, unforeseen events.
  • Perfect for: Those interested in finance, economics, and philosophy, and anyone who enjoys challenging their own beliefs and assumptions.

• Antifragile: Things That Gain from Disorder by Nassim Nicholas Taleb
  • Genre(s): Philosophy, Business, Economics
  • Synopsis: Taleb extends his discussion of the Black Swan to focus on how some systems are built to benefit from volatility, shocks, and disorder. He introduces the concept of "antifragility," which is more than resilience or robustness, as antifragile things improve when exposed to stressors and shocks.
  • Why this book is challenging: The concept of antifragility is a complex and novel idea that challenges conventional wisdom about managing risk and uncertainty.
  • Why we recommend this book: It offers a revolutionary framework for dealing with unpredictable changes, which can be particularly useful in financial and career decisions for young adults.
  • Perfect for: Innovative thinkers and future leaders in business and finance who are looking for ways to thrive in a volatile world.

Exercises to Develop a Good Reading Habit

Hey there! If you're in your twenties and starting to get serious about your financial health, diving into some good books is a fantastic step. But, how do you make the most out of your reading? Here are a few exercises to help you develop effective reading habits, ensuring you really soak up all that valuable knowledge.

• Set Specific Reading Goals
  • What it is: Decide on a number of pages or chapters to read each day.
  • How it helps: Keeps you consistently engaged with the book and helps in completing it.
  • Tips: Choose a realistic goal based on your schedule and stick to it.

• Summarize After Reading
  • What it is: Write a brief summary of what you've read each time you finish a reading session.
  • How it helps: Enhances comprehension and retention of the material.
  • Tips: Keep your summaries concise and focus on the key points.

• Discuss with Peers
  • What it is: Engage in discussions about the book with friends or online communities.
  • How it helps: Provides deeper insights and different perspectives on the topics discussed.
  • Tips: Try to find or start a book club focusing on financial literacy.

• Apply One Concept at a Time
  • What it is: Choose one financial concept from the book to implement in your life.
  • How it helps: Makes the theoretical knowledge practical and actionable.
  • Tips: Focus on mastering one concept before moving on to the next.

• Teach What You Learn
  • What it is: Explain the concepts you've learned to someone else.
  • How it helps: Teaching is a great way to deepen your own understanding.
  • Tips: Use simple language and examples to explain the concepts clearly.

By integrating these exercises into your reading routine, you'll not only get through those financial books but also retain and apply the knowledge you've gained. Remember, the goal is to turn these insights into actions that positively impact your financial future. Happy reading and learning!