Editor’s note: This article was first published in September 2022 as a ranking. Item 2 calls Tony Robbins’s MONEY Master the Game (2014) his latest book, which was no longer true in 2022. The description of Rich Dad Poor Dad as a copy of The Richest Man in Babylon, and the other comments on Robert Kiyosaki in this list, are the author’s personal opinion.
What are the best books on financial education and personal finance? To put this ranking together I have drawn on my own experience with the subject. There is a large catalogue of financial education books, but you often find too much repetition of the same ideas and, let’s be honest, blatant copying of the classics by newer authors.
That’s why I have taken all this into account in this ranking of the best financial education books, and I will only include those that bring something new: fresh, original content. As you know, I only recommend books I have read myself. This is my personal ranking, updated as of September 2022.
(Read also: The 2 best books for getting rich are over 70 years old)
The best financial education books
1. The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness, by Morgan Housel
Possibly one of the best financial education books written in recent times. But let’s not have any misunderstandings. The book’s original title is The Psychology of Money.
The Spanish-speaking market didn’t accept it under that title, so the publisher had to give it a more commercial one for Spanish speakers: Cómo piensan los ricos (“How the rich think”). After that change, the book started selling in Spain.
Of course, with that title some readers may get the wrong idea about what they’re going to find. The content is brilliant, but it has nothing to do with “how the rich think”. Rather, it explains human behaviour and how we should change our relationship with money. A book I wholeheartedly recommend, and one that has earned first place on our list of the best financial education books.
2. MONEY Master the Game: 7 Simple Steps to Financial Freedom, by Tony Robbins
The most recent on the list and Tony Robbins’s latest book. Here Robbins does something different, with an enjoyable, easy-to-understand book on achieving financial freedom.
To help you decide whether this book is for you, I wrote a full review of MONEY Master the Game, where I explain its strengths and weaknesses. Among them is the fact that Tony Robbins consulted the best people in the financial world, so of course we find some contradictions between the methods they each recommend.
Even so, it’s a very worthwhile finance book, because everything it recommends is thoroughly documented. He has managed to condense the investment philosophy of investors such as Warren Buffett and Peter Lynch.
See also: Reflections on money
3. The Total Money Makeover, by Dave Ramsey
I may not agree with 100% of what the author says in this book, but it is without doubt a highly recommended financial education book, because it gives you a guide to prospering financially whatever your income.
For Ramsey, knowledge matters less than good behaviour with money, so throughout the book he guides you towards improving your personal finances, managing your debts properly and drawing up a budget.
This book has certainly been a welcome discovery in the field of financial education.
4. The Millionaire Next Door, by Thomas J. Stanley
This book breaks a belief that is very popular among the poor and middle classes: that millionaires spend their money on luxury cars and live it up. In fact, following a saying we have around here, “if you want to be a millionaire, don’t live like a millionaire”, the millionaire could well be a neighbour on your street who leads a quiet life. In many cases, as the author explains, the children of these families sometimes don’t even know they belong to the wealthiest class.
Probably the best financial education book for the usefulness of its ideas, above all about people’s psychology, for understanding how wealthy people really think, breaking down popular beliefs. It’s an entertaining, easy read, with lots of financial advice that is always worth knowing.
A couple of clarifications: this book is very focused on the United States, although most of its content can be applied to Spanish-speaking markets. And there is a second book, The Next Millionaire Next Door, which is practically identical. What I mean is that if you haven’t read this book, it doesn’t matter whether you buy this one or the new one. But if you have already read this one, there’s no need to get the new one.
5. Secrets of the Millionaire Mind, by T. Harv Eker
This is one of those financial education books that start from the premise that one person fails while another succeeds simply because the successful person has habits that the person who fails lacks.
This book does give some very concrete steps for changing the habits and thoughts that hold back our financial goals. A highly recommended book that has already become a classic of financial education.
It isn’t a conventional financial education book, meaning you won’t find techniques or recipes for growing your money, but you will find some advice for changing the way you think about money.
6. The Richest Man in Babylon, by George S. Clason
A timeless classic that will help you reach your financial goals and build wealth, starting, mind you, from effort, dedication and taking action on our part. It gives you a set of rules for success that are as old as they are valid today. It’s also written in very simple language and is very quick to read. Without doubt one of the best financial education books ever written. In fact, many other books have been written based on this one.
The ideas George S. Clason explains have been used extensively by other authors in many other financial education books. In fact, Robert Kiyosaki’s Rich Dad Poor Dad is a copy of this book.
7. Rich Dad Poor Dad, by Robert T. Kiyosaki
I have mixed feelings about this book. Let me explain. To me, Robert Kiyosaki is a snake-oil salesman, and this book is a copy of The Richest Man in Babylon, explaining basically the same thing.
That said, I have to admit he has managed to adapt George Clason’s classic to modern times, making it an easy read even for young people. As a book to change people’s mindset and give them an initial push, it’s perfect. As a finance book, it’s pretty weak.
Even so, much to my regret, it’s a book I recommend as a first financial education book. In other words, if you’ve never read anything on the subject, it’s a good book to start with. On the other hand, it’s a useless book for anyone who has already read other financial education books on this list.
8. The Millionaire Fastlane, by MJ DeMarco
Personally, I disagree with some of the ideas in this book, but they are points of view I think readers should compare and decide on for themselves. This book breaks with the belief in getting rich slowly and patiently (the only sure way to build wealth for retirement).
Still, we can’t say his finance philosophy is wrong. In fact, you’ll find many ideas already explained in other financial education books, although DeMarco does it quite well, treating poverty as a disease. Let’s say it’s an excellent book for asking yourself whether taking shortcuts to wealth is worth it.
A highly recommended book if you’re thinking of starting your own business. Without doubt, this book also breaks with many false beliefs that other authors have put into our heads. For that reason alone it earns a place on this select list of the best financial education books.
9. Money and Conscience: Whom Does Our Money Serve? (Dinero y conciencia: ¿A quién sirve nuestro dinero?)
As its title suggests, this book tries to raise awareness of the importance of where we direct our spending habits. It isn’t really a financial education book as such, but you’ll find some very interesting ideas about the importance of money and of our habits.
10. The Intelligent Investor, by Benjamin Graham
With this book we enter the territory of the financial heavyweights. It’s an advanced investing book, not suitable for those looking for books along the lines of “an asset puts money in your pocket, a liability takes it out”. However, the sooner you accept that anyone who wants financial freedom or wealth will have to go through stock market investing, the sooner you’ll realise the importance of this book, which the greatest investment experts consider “the bible of investing”.
This book is already a legend in the investing world, not least because it comes from an investing legend, Benjamin Graham, Warren Buffett’s teacher.
I’ve always said that until you can understand everything in this book, you shouldn’t invest in the stock market. So although it isn’t a financial education book but rather an advanced investing book, it couldn’t be left out of my top 10 financial education books.
Featured image: Gage Skidmore from Surprise, AZ, United States of America, CC BY-SA 2.0, via Wikimedia Commons.
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