Financial literacy is the ability to understand and apply a range of financial skills effectively. It applies to successful personal financial decisions and management like monthly budgets, saving, investing, and establishing a career to pay living expenses. Financial literacy means people can become self-sufficient and not need to live with parents or family as they can earn and pay their own bills.

Financial literacy starts with a full understanding of personal finance but should expand to understanding the importance of investing. After these two areas are mastered many move on to understanding how to open and operate a business.

Here are ten of the best books for people to read for financial literacy.

The Richest Man in Babylon by George S. Clason is a great first book to get the reader thinking about the basic core principles of successful personal finance.

Financial Peace Revisited by Dave Ramsey gives readers the basics of getting and staying out of debt, budgeting, along with avoiding making terrible financial decisions that lead to financial pressure or even bankruptcy.

The Psychology of Money: Timeless lessons on wealth, greed, and happiness by Morgan Housel is a book that teaches the reader about the mental game of money and how to think about your financial journey.

Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence: by Vicki Robin is a book that teaches a frugal path to financial independence by getting your cash flow higher than your living expenses, while not for everyone it is one way to escape the corporate rat race through minimalism and discipline.

Rich Dad, Poor Dad by Robert Kiyosaki teaches readers about the different cash flow quadrants employee, investor, business owner, and self employed. Most people never think beyond being an employee so the lessons can be very eye opening.

The Millionaire Next Door by Thomas J. Stanley and William D. Danko shows the results of surveys of millionaires that showed that most are self-employed or have long-term careers, stay married, own their own home, invest in the stock market, and own their own business.

Killing Sacred Cows: Overcoming the Financial Myths That Are Destroying Your Prosperity by Garrett B. Gunderson opens reader’s mind to focusing on your Soul Purpose to create value and prosperity. This book focuses on maintaining a prosperity mindset and looking at the value in purchases more than prices.

How to Make Money in Stocks: A Winning System in Good Times and Bad by William J. O’Neil teaches readers how the stock market works and how to invest and trade the top growth stocks based on historical analytics.

Trend Following: How to Make a Fortune in Bull, Bear, and Black Swan Markets by Michael Covel explains the power of following the trends in markets for profits. The book explains the profitable principles of speculation that can be used in any financial market.

The Millionaire Fastlane: Crack the Code to Wealth and Live Rich for a Lifetime by MJ DeMarco explains the different roads people get on in life in their finances and how to get on the fast lane for creating your own path to wealth and prosperity.

best books for financial literacy
Image by Lubos Houska from Pixabay