Looking for a stock market book

Member since 2019 · 2 posts · 0 votes

Hello, this is my first post.... yahhh.

I have 2 kids 11 and 13. I want to get them started thinking about money in the right way. My 11 year old is definitely going to be a saver and I fear that my 13 year old is going to spend as soon as $$ hits his hand.

I am planning on having them read “Rich Dad Poot Dad” and “The Richest Man In Babylon.” They both are smart kids and the big words/concepts will be a good discussion for all of us.

I am planning on opening an account at a brokerage firm for them invest their own money and let them pick the stocks, but I want them to read about the stock market.

Does anyone have a good recommendation of a book(s) that they had their kids read or is simple enough for a teenager to understand?

Thank you in advance,

Charlie

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Scott TrenchPro Member

Rental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes

I'd suggest "Beating the Street" by Peter Lynch. It is definitely NOT targeted at teenagers, especially 13 year olds. But, it is easier to digest than most books on investing in stocks that I've read. It's closer than many books you could recommend to being digestable by them, especially if they are very interested and/or self-motivated.

Of course, part of the message is to select stocks that you know and use and enjoy. I'm an index fund guy myself. BUT, I do credit this book with sparking part of my interest in investing generally.

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Peter Sanchez
Real Estate Investor · Washington, DC · Member since 2014 · 236 posts · 328 votes
6y
For a kid, definitely start with "The Little Book that Beats the Market" by Joel Greenblatt. Then, "One Up on Wall Street" by Peter Lynch.
If he's still interested, maybe "Dhando Investor" by Mohnish Pabrai or "The Most Important Thing" By Howard Marks. These are all very readable books by legendary investors. Avoid most of the crap out there by people who write books but have never managed money for a living.
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Account Closed
None · Member since 2018 · 125 posts · 46 votes
6y
@Charles Taggart The Richest Man in Babylon is a great idea. I really enjoyed Set for Life by Scott Trench, it has great information for younger people starting out. I’d also suggest getting the books as audiobooks you can all listen to together in the car and discuss.
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Lynnette E.
Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
6y
The Life of Fred Financial Choices is good at explaining general finances to children. It covers the basics of stocks bonds, REITs, CDs, MF, etc. It also has general real estate, insurance, taxes, credit cards, where to invest. It is written at a kid's level, following the understanding math writing style that the Life of Fred Book Series is known for.
My kids like it, but sometimes got tired of the animal or whatever the side kick is in the introduction stories. Most importantly they really did understand the principles that can be complex. It brought it down to a level that teens, near teens can understand.
Also your brokerage firm may have a website or information for kids. My kids meet once or twice a year with their financial manager and he discusses how their Roth IRAs are doing and also they listen in and ask questions about how a family trust is managed, goals for the future, returns from the past.
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Carl FischerPro Member
Rental Property Investor · Ambler, PA · Member since 2015 · 2k+ posts · 1k+ votes
6y
@Charles Taggart
Teach them about interest and taxes. The difference between gambling and investing!
Play the “cash flow” game.
Do they want to be the gambler or the the house, borrower or bank, renter or owner, etc. Great that you are thinking of their future.
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Scott TrenchPro Member
Rental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
6y
I'd suggest "Beating the Street" by Peter Lynch. It is definitely NOT targeted at teenagers, especially 13 year olds. But, it is easier to digest than most books on investing in stocks that I've read. It's closer than many books you could recommend to being digestable by them, especially if they are very interested and/or self-motivated.
Of course, part of the message is to select stocks that you know and use and enjoy. I'm an index fund guy myself. BUT, I do credit this book with sparking part of my interest in investing generally.
Podcast Guest on Show #223
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Scott TrenchPro Member
Rental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
6y
Sorry! It is One up on Wall Street - as suggested by @Peter Sanchez
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Charles Taggart
OP
Member since 2019 · 2 posts · 0 votes
6y
Thank you all I will be looking in to all these recommendations.
Charlie
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Harry Standafer
Investor · Lexington, KY · Member since 2019 · 31 posts · 21 votes
6y
@Charles Taggart
I know you asked for books, but for kids I would think podcasts might be better. I tried to read some of Warren Buffett’s book recommendations recently and found myself in a bit over my head. I can only imagine the same would be true for a kid, to the nth degree.
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Bradley Kennedy
Member since 2019 · 3 posts · 2 votes
6y
@Charles Taggart
Simple Path to Wealth by JL Collins.
As others said though, a lot of these books aren’t exactly “kid friendly”.
Former Navy Seal and now public figure Jocko Willink has released a book series called “Warrior Kid”. I don’t think there is investment advice but if I recall correctly he does plan to incorporate financial lessons and simple living principles (as well as many other things).
Perhaps neither recommendation is quite what you are looking for but both are good for education of a child. Hope it helps!
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