books to help 16 yr nephew learn finances

19 years ago

My sister has 3 teenagers, is a single mom, so finances are tight, but she has never learned to manage her own money well. Her middle son seems to be following in her footsteps, wanting to have things before he has the money. He's in basketball, which will hopefully result in a college scholarship. I'm looking for recommendations on books or other that our mom, his gramma, can work with on him on learning finances. A class on finances is offered in the high school, but he's a junior, and I imagine he's already committed to classes for his senior year. This came up because he wants to borrow money from me to go to prom. One thought was he could do chores for his gramma to work off the money owed from me. Please advise.

Thanks

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Comments (13)

zone_8grandma
19 years ago
last modified: 11 years ago
I'd recommend reading The Only Investment Guilde You'll Ever Need by Andrew Tobias
Chemocurl zn5b/6a Indiana
19 years ago
last modified: 11 years ago
A good basic book to start with the very basics from the beginning is Personal Finance for Dummies

Is going to the prom something he really wants to do, or possibly something his girlfriend wants him to do.

Might he consider waiting, working and saving in advance, to attend his senior prom?

Sue
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joyfulguy
19 years ago
last modified: 11 years ago
I'm not familiar with the U.S. stuation, and tax considerations are important, if not hugely so for teens.

I'd suggest checking with the personal finance section of your library, and asking some staff person familiar with that field.

Possibly Grandma's scoping the situation out first, maybe taking the youth along on a later trip, so he becomes familiar with that section and the wealth of information that staff have.

In later years, he may want to use it as he learns, including information re mutual funds, buying stocks and bonds directly, international investing, home-based business, etc.

Everyone above the age of a toddler has a business of his/her own.

As most kids know, if their Mom or Dad goes to work and their employer doesn't pay them, they don't keep going back for long. Or if they operate a business and have employees, if they stop paying those employees, the employees will soon leave.

And each of the people that I referred to as having their own business has a number of employees.

The great thing about this business, though, is that they don't have to pay their employees ... in fact, many of their employees pay them! Who ever heard of an employee paying for the privilege of working!

When I'm telling this story to kids, I pull out my change purse, lift out a Dollar coin, a Loonie (there's a loon on the back) and say to the kid that here is one of my employees. Somewhat larger than a quarter and brass-coloured: I like to try to keep a fairly new, shiny one in there.

If I send it out to buy ice cream (pushing it away from me), the ice cream tastes good and I enjoy it ... but my employee is gone: it worked for me only once.

If I hang on to it, it'll work for me as long as I keep it, bringing in more like itself. Here I sometimes drop a nickel down on a table beside the loonie.

With one exception ... if I put it into the mattress ... it goes to sleep!

Our job as owners of that business, as that of ordinary business owners, is to learn how to make those employees work as effectively as possible.

Learning how money works - an interesting hobby, that pays well!!

Also, either you boss your money ... or it'll boss you - and you won't like that much!

After a meeting of an investent group that I attend, some of us go to a coffee shop for another hour's gadfest, and at a Macdonalds last month I told that story to a couple of small kids with their Mom,and a teen girl with her cell phone, sliding the Loonie around the table as I told the story.

When I left, they applauded. That made my day!

I told this story on a thread either here or "Money Saving Tips", titled to Randy 427 and to other parents with kids. There may be a fuller description, there.

Hope this helps.

ole joyful
randy427
19 years ago
last modified: 11 years ago
I recommend Ric Edelman's "The Truth About Money".

Here is a link that might be useful: Ric Edelman website
dave_donhoff
19 years ago
last modified: 11 years ago
Hi Norwega,

My sister has 3 teenagers, is a single mom, so finances are tight, but she has never learned to manage her own money well.

Your sister's kids will always (and HAVE been) watching her values & habits. Will SHE be willing to read and/or listen too CDs/Tapes to break her established patterns and re-learn new habits?

If not... the kids are not likely to do anything different UNLESS they are doing so in DEFIANCE to Mom...

Her middle son seems to be following in her footsteps, wanting to have things before he has the money. He's in basketball, which will hopefully result in a college scholarship. I'm looking for recommendations on books or other that our mom, his gramma, can work with on him on learning finances.

Character is the underlying issue in finance. Far more so than any mathematical principles.

If he's REALLY strong in Basketball, I recommend 1st getting him addicted to the focus on Principles by giving him "They Call Me Coach" by John Wooden (the winningest college dynasty basketball coach ever in history.)

They Call Me Coach (Paperback)
http://www.amazon.com/They-Call-Coach-John-Wooden/dp/0071424911/ref=pd_bbs_sr_1/002-7614444-2019238?ie=UTF8&s=books&qid=1175881006&sr=1-1

If your nephew is a student of the game, he'll definitely "see the light."

A class on finances is offered in the high school, but he's a junior, and I imagine he's already committed to classes for his senior year. This came up because he wants to borrow money from me to go to prom. One thought was he could do chores for his gramma to work off the money owed from me. Please advise.

Here's a list of appropriate "starter books" for anyone (but especially young people);

Rich Dad's Escape from the Rat Race: How to Become a Rich Kid by Following Rich Dad's Advice (Rich Dad) (Paperback)
http://www.amazon.com/Rich-Dads-Escape-Rat-Race/dp/0316000477/ref=sr_1_16/002-7614444-2019238?ie=UTF8&s=books&qid=1175880409&sr=8-16

Rich Dad Poor Dad for Teens: The Secrets About Money--That You Don't Learn in School! (Rich Dad Poor Dad) (Paperback)
http://www.amazon.com/Rich-Dad-Poor-Teens-Money-That/dp/0446693219/ref=pd_bxgy_b_img_b/002-7614444-2019238?ie=UTF8&qid=1175880409&sr=8-16

Rich Dad's Rich Kid, Smart Kid: Giving Your Children a Financial Headstart (Paperback)
http://www.amazon.com/Rich-Dads-Kid-Smart-Financial/dp/0446677485/ref=pd_bxgy_b_img_b/002-7614444-2019238?ie=UTF8&qid=1175880409&sr=8-16

Think and Grow Rich: The Landmark Bestseller--Now Revised and Updated for the 21st Century [ABRIDGED] (Paperback)
http://www.amazon.com/Think-Grow-Rich-Landmark-Bestseller-Now/dp/1585424331/ref=pd_bbs_sr_2/002-7614444-2019238?ie=UTF8&s=books&qid=1175880523&sr=1-2

The Wisdom of James Allen : Including As a Man Thinketh, The Path to Prosperity, The Mastery of Destiny, The Way of Peace, and Entering the Kingdom (Radiant Life) (Paperback)
http://www.amazon.com/Wisdom-James-Allen-Including-Prosperity/dp/1889606006/ref=pd_bbs_sr_2/002-7614444-2019238?ie=UTF8&s=books&qid=1175880588&sr=1-2

Richest Man in Babylon (Paperback)
http://www.amazon.com/Richest-Man-Babylon-George-Clason/dp/0451205367/ref=pd_bbs_sr_1/002-7614444-2019238?ie=UTF8&s=books&qid=1175880631&sr=1-1

Hope these help!
Dave Donhoff
Strategic Equity & Mortgage Planner
Chemocurl zn5b/6a Indiana
19 years ago
last modified: 11 years ago
OJ posted something recently that really stuck with me for some reason.

He said, "Maturity is delaying gratification."

Possibly if someone can make your nephew see his habits as immature, he will be more likely to show everyone just how mature he is, or can be.

Don't all teens think they are mature, and want to be seen and treated as mature adults?

Sue...just thinking out loud again
duluthinbloomz4
19 years ago
last modified: 11 years ago
An interesting and fun book to add to the list is "The Millionair Next Door" by Wm. J. Stanley and Wm. D. Danko.

If this 16 year old is already going to relatives to borrow, perhaps you would be a good financial mentor. It's hard because kids need and kids want, but this seems like a perfect opportunity to introduce him to the wonderful world of loan repayment.

A little OT, but my maternal grandfather was my mentor. He landed in America with little more than lint in his pocket and a third grade education. He'd used those three grades to learn reading, writing and arithmetic and became one of this city's most successful and well respected businessmen. He would always hand us grandkids a dollar with a wink saying "make it work for you."
marge727
19 years ago
last modified: 11 years ago
I have most of the books listed because either my husband bought them or I did. I haven't read them all. I cannot picture a 16 year old working his way through them.
I taught 16 year olds in high school years ago and tried to teach finance by using credit card statements. We looked at how fast the charges added up and how slowly the principal got paid down. "We looked at car payment slips and did some math. We looked at people's lease car statements, especially at the end of the lease period. We looked at the stock market and the Wall Street journal.
That stuff made sense.
My own kids handle money well, because they were taken to the bank and deposited money. They got savings bonds. In spite of being in an affluent area, they got a certain amount of money to buy clothes and we went to discount stores. They are grown now. We have the Wall Street journal in the house and its articles are really interesting.
I'd be a little careful giving them the books on :think and grow rich" You don't want them to fall prey to get rich quick schemes.
joyfulguy
19 years ago
last modified: 11 years ago
A few years ago, my daughter gave me, "Rich Dad, Poor Dad", for Christmas, birthday, or some such.

For those of you who haven't read the book ... the "Poor Dad" was Kiyosaki, the writer's, own dad - who was superintendent of education in Hawaii, a number of years ago. The "Rich Dad" was his pal's dad ... who lived in a modest home, but owned several companies. And he got the two boys to work in one of his stores for a while ... for nothing. Except training ... in how to become rich.

Could one good way to become fairly rich perhaps be to write books with catchy titles ... on how to become rich?

Seems to me that I've seen quite a few on the internet doing something like that.

A while ago, I saw another Kiyosaki book, "Rich Kid, Smart Kid", or "Smart Kid, Rich Kid", or something like that in the library, borrowed it, and showed it to daughter when we were together. We got a bit of a laugh out of that.

Have a joyous, thoughtful Easter - if that observance is important to you.

ole joyful
grainlady_ks
19 years ago
last modified: 11 years ago
Anything by best-selling author, Dave Ramsey (see link below). He also has a new program for teens and their money. Classes are often taught at local churches.

A young, newly divorced, mom of two that I know was struggling. I gifted her the class at a local church and she couldn't believe how much it helped her to get her finances under control. Much better than a finger-wagging friend of her mother's.

-Grainlady

Here is a link that might be useful: Dave Ramsey
User
Original Author
19 years ago
last modified: 11 years ago
Thank you all for your suggestions.
Grainlady, how do I find a Dave Ramsey class at a local church for my sister? I'm considering getting Sink or Swim for Teens for her, my nephew, and my mom, (and myself) so we can all work on it together. My sister is doing much better than before, over a year ago she gave her checkbook to my mom and had her handle it for a time. She's still living beyond her means though, but it's tough with so many demands of teenagers, and she's had health problems herself, adding to the financial burden. She's great at thrift shops and such and looking for bargains.
I'll check out the John Wooden book myself from the library, and may give it to my nephew for his birthday in June.
Thanks again.
Mo
19 years ago
last modified: 11 years ago
Sense and Dollars
The Mint
scott2006
19 years ago
last modified: 11 years ago
Go to the Betterinvesting web site Betterinvesting.com and see if you can get them into a stock club for kids. ( possible on line) Also they have a good kids investing course there. But a club is the way to go.

I use the NAIC soft ware and are club is doing great.

Scott

books to help 16 yr nephew learn finances

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zone_8grandma

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