The best personal finance books for recent graduates

If you’re giving your college graduate a cash gift, you might want to include a book on how to put that gift to good use. Financial planning may not be a priority: 70% of graduates finish school with significant debt. But with U.S. employers creating an average of 200,000 jobs per month in 2018, your graduate could soon be working – and doing financial planning – soon.

Here are some personal finance books for graduates recommended by Chris Farrell, Marketplace senior economics contributor, with economics and English majors in mind.

1. “A random walk on Wall Street: the proven strategy for a successful investment“is a classic. Originally published in 1973, Burton Malkiel’s book is the starting point for new investors. If your graduate isn’t ready to invest in stocks, Malkiel would likely approve of staying at it. spread. It advises index funds and details other types of investments, such as money market accounts and real estate. The title is derived from the “random walk theory” of stocks, which your graduate can explain to you after a reading.

2. If your graduate’s questions about investing sound more like “a clue what?” Then you can also get the abridged version of his book, titled “The Random Walk Guide to Investing.Makiel condensed his original in 2003 to 10 benchmarks for first-time investors. He cuts the jargon and lands on a thesis anyone can understand: “The past history of stock prices cannot be used to predict the future in any meaningful way.”

3. But investing or saving for retirement is probably not your graduate’s priority right out of college. And Beth Kobliner understands this financial space. His book, “Get a Financial Life: Personal Finances in your 20s and 30s, “ talks about the economic mindset of millennials grappling with college debt and memories of the financial crisis. Yes, they should invest up front, but not without the basics: paying taxes, deleveraging, and raising credit scores.

4. If you’re worried that your graduate won’t want another book after four years (or more) of college, get them a card. A few years ago, Harold Pollack, professor at the University of Chicago, stated Everything You Need to Know About Personal Finance. can fit on a 3 “by 5” plug. So he wrote a book with an author and a journalist Helen Olen called “Fact sheet: why personal finances don’t have to be complicated. “His book discusses how card rules can actually work better than advanced financial strategy. Some of these tips are to save 10-20% of your income and maximize your 401 (k).

5. For a deep dive into index funds, follow in the footsteps of Vanguard Group founder and former CEO John Bogle. “The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Returns”Is another classic of the financial library. His advice? Do what he did: “Buy and own all the state-owned companies in the country at very low cost.“It sounds simple, doesn’t it?

6. Elizabeth Gilbert, after years of successful New York Times bestseller Eat, Pray, Love, has written a creative instruction manual for life: “Great magic: a creative life beyond fear. ” His central thesis encourages readers to live out of curiosity rather than fear. While not strictly personal financial advice, it has practical applications for achieving goals, and a little creative encouragement will send graduates out into the world ready to invest in their future.

This story was updated on 05/22/2018.