Financial illiteracy is very dangerous, because it not only condemns a person to poverty, but also destroys any chance of improving the situation. A person makes increasingly unsuccessful decisions, which means he can afford less and less. To prevent this from happening, you need to read the best books on financial literacy. But not just thoughtlessly flipping through the pages, but putting the acquired knowledge into practice!
Financial literacy test
Annamaria Lusardi of Dartmouth College and Olivia Mitchell of the University of Pennsylvania conducted a survey of residents of 14 countries in order to find out how well ordinary people understand how money is made. He showed that most people are illiterate in finance. Only in Germany and Switzerland half of the respondents answered all three questions correctly. But the most deplorable situation was in Russia, where only 4% of respondents did it. Consider these three questions:
- How much money will you have in your account in five years if you put $ 100 on a deposit at 2% per annum?
- If your money is in the deposit account at 1%, and inflation in the country is 2%, then having withdrawn it in one year, can you buy more, the same or less than today?
- Does the purchase of shares of one company provide a more reliable income than the acquisition of units of mutual funds?
If you were at a loss with the answer to at least one question, it is advisable for you to familiarize yourself with our list.
Fundamentals of Financial Literacy: All Books
Consider the literature rating on this topic of the famous Russian social network of fans of reading LiveLib:
- Bodo Schaeffer, The Path to Financial Freedom. This book begins our selection of books on financial literacy. Its rating is 4.426 points, the number of readers is 167 people, another 186 want to do it.
- George Clayson "The Richest Man in Babylon." Rating - 4.365 points, the number of readers - 1052 people, another 1564 want to do this.
- John Kehoe "The subconscious mind can do anything." Rating - 4.317 points, the number of readers - 1322 people, another 1171 want to do it.
- Robert Kiyosaki "Rich Dad, Poor Dad." Rating - 4.073 points, the number of readers - 3331 people, another 1564 want to do this. If we consider the recommended books on financial literacy, then it is the undisputed leader of our list of popularity among users of the social network LiveLib.
- Richard Branson "To hell with everything, take it and do it." Rating - 4.0286 points, the number of readers - 1827 people, another 1305 want to do this.
- Napoleon Hill "Think and Grow Rich." Rating - 4.024 points, the number of readers - 1054 people, another 850 want to do this.
"The path to financial freedom"
In our list, where we have collected the best books on financial literacy, it is in first place. Despite the fact that they published it a long time ago, it has not lost its relevance. It contains a lot of information on how to start your own business, make your first investments, pay off debts and manage your profit. Bodo Schaeffer talks about how to become a wealthy person with a stable income from an average worker. She has withstood five editions, received mostly positive reviews. Those who read it note that it describes simple but extremely effective methods for achieving financial independence.
"The richest man in Babylon"
Reviewing the best books on financial literacy, we ranked George Clayson's most famous work in second place according to the LiveLib rating. It describes the basics of investing. From it, a person can learn how to make their own savings profit. The author talks about the need for certain habits and routines. Among them are the following:
- You need to save at least 1/10 of your income.
- Costs should be monitored. Only the things that really matter deserve you to buy them.
- It is necessary to increase your wealth. Savings should not be dead weight.
- Before making any investment, you need to evaluate its profitability and riskiness.
- The improvement of the home should occur for themselves, and not others.
- It is necessary to secure income for old age.
- The ability to earn should also be constantly improved.
“The subconscious can do anything”
The best books on financial literacy are not only those that teach how to make and distribute money. Our list also includes the work of John Kehoe, which is devoted to the secret forces of the subconscious. You need to understand that success depends only on 20% on talent and natural abilities, and 80% on thinking. According to user reviews of LiveLib, this book can fundamentally turn life around. She teaches to find the right solution in any situation and gives motivation for action.
"Rich dad, poor dad"
If we had compiled a list of popular books on financial literacy, not by their rating, but by the number of readers, Kiyosaki’s work would have led him. It is intended for a wide audience and gives those basics of handling money, which for some reason do not pay any attention at school. This book describes in sufficient detail how you can become a successful investor from an ordinary worker. According to readers, Kiyosaki describes in sufficient detail how thoughts affect a person’s life. The book does not have a ready enrichment scheme. However, the author offers a rather interesting concept, with which you can understand in which direction you need to move.
“To hell with everything, take it and do it”
Looking at books on financial literacy, one cannot but pay attention to the work of a real entrepreneur. According to readers, she may well be pushing for the opening of her own business, or at least for some kind of action. The author of the book “To hell with everything, take it and do it” knows how to give a powerful stimulating impetus to a conscious life. He himself tested his concept in practice. Branson now owns over 300 different types of businesses.
