Although there are a lot of writers that have written award-winning books about finances and investing, where can you find books on how a student can start investing at a young age?
As Benjamin Franklin once said,
"An investment in knowledge pays the best interest."
Not only is growing your knowledge important for long-run success but understanding how to develop and expand your education is just as valuable.
In today's blog, we will explore the 5 best investing books for any young investor looking to get started early.
A lot of our students are bright and have a keen interest in learning more and accumulating both their academic and personal knowledge. With this article, we will recommend students our picks for insightful reads that can get any learner the beginning basics of investing - and we will tell you exactly why these are a great start for any student.
Parents, keep on reading to give your children the right books that will help them become successful at an earlier age.
Even though the book recommendations below are structured for novice investors, these contain the foundational concepts that are important to any senior or experienced investor.
Before you get to reading, don't forget to secure your spot for 7EDU's free online class!
This Friday, November 22 from 5:30pm to 6pm with expert and Stanford postdoc Dr. Yan Liu.
"The Four Pillars of Investing" by William J. Berstein
In this beginner-friendly investing book, you will learn the essentials of the money market. Berstein discusses important basics such as risk and reward, market history, and market behaviors you should be aware of.
Berstein is conservative when it comes to his investment choices, and as such, expect the book to advocate for a more sparing approach. With this in mind, if you wish to follow his guidance you will be financially prepared when you retire - but of course, it will take a more economical tactic of expenditures.
We recommend this book for young learners that want to comprehend the reasoning behind investing decisions. You will discover how particular investments function and exactly what type of outline you will personally need to follow if you want to invest in a certain one.
What habits do intelligent students have? Find out in last week's article!
"Your Money and Your Brain" by Jason Zweig
With the help of experienced Wall Street Journal financial journalist, Zweig, you will explore the many challenges of how your very own brain can ruin your chances of successful investing.
Zweig takes a look at investing money from a scientific perspective in which he examines the psychology and behavior of investors; he provides a perceptive book that will help any young investor build the proper personal confidence in their investing aptitudes.
This book is suitable for beginner students looking to learn about the traps and obstacles of investing pride and arrogance. You will uncover Zweig's strategies on how you can conquer and evade egotistical investing errors.
"Thinking, Fast and Slow" by Daniel Kahneman
Similar to the previous investing book above, "Thinking, Fast and Slow" focuses on the thought process of early investing. Kahneman is a Noble Prize-winning economist that successfully grabs the reader's attention with his unique perspective on subconscious prejudices that can result in catastrophic investing decisions.
Novice young investors will find this as somewhat of a handbook towards understanding their "slow" reasoning abilities and maximizing this skill for better decision-making when it comes to investing.
The overall book is a great read for any student hoping to learn how to make smarter economic choices and managing your finances.
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"A Random Walk Down Wall Street” by Burton G. Malkiel
In this introductory investing book, you will have a financial tool filled with priceless information on index funds, diversification, and portfolio allocation. If you are just starting your investing journey into the stock market, Malkiel's book helps to clarify how an investment portfolio functions and how an individual can maximize its use.
Note that Malkiel wrote this book with the intended audience being financial beginners, so if do not be discouraged if you cannot fully comprehend some of the economic jargon.
We suggest students take a read of "A Random Walk Down Wall Street" if they are hoping to study beginner-to-intermediate level ideas on portfolio-building. Malkiel additionally provides well-rounded information in this book on how you can decide on the market stocks you want to invest in. With his discussions on expanding your financial investment horizon, this book is slightly more suitable for the somewhat more advanced beginner investor.
"The Intelligent Investor" by Benjamin Graham
Lastly, but surely not the least is "The Intelligent Investor".
An oldie but a goodie, this book is more packed-dense than the other previous recommendations. After you have successfully taken a read of the other introductory investment books, Graham's book takes students beyond rookie-level investing.
The book examines and explains how a young adult can find and evaluate specific companies or businesses that they are potentially interested in investing in. As the father of value investing, many consider this book to contain core and principal investment tactics that beginner or even senior-level investors should apply.
We recommend this book only if you are prepared to take on a solid foundational reading on investing. It is lengthy and includes plenty of technical languages; however, if you can get past that, the book is worth a read to move further along your investing knowledge.
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