In today’s always-on digital world, reading can seem like a quaint pastime. After all, a pithy social post is easier to digest than a full book. However, real learning typically requires a commitment to delve into a topic in some depth. That’s particularly true for anyone seeking to enhance their financial literacy.

One way to build this essential skill is by reading investing books as a family. Beyond equipping your entire family to make better financial decisions, this family activity can foster important discussions about your collective financial goals and strategies. It can also encourage open conversations about money, which is often considered a taboo topic.

To help you get started, here are a few investing books to read as a family, along with discussion questions and prompts for each book.

1. The Psychology of Money

Author: Morgan Housel

When it comes to investing, our emotions and biases often play a larger role in our decision-making than we may imagine. This book, which was published in 2020, delves into the behavioral aspects of personal finance by sharing 19 stories that underscore how people think about money.

Beyond looking at the ways that psychology influences financial decisions, the book explores the difference between being rich and being wealthy. If your family is looking for strategies for making smart financial decisions, this is a good place to start.

Family Discussion Points

• How can we recognize and manage our financial biases?
• What role does humility play in achieving our long-term financial goals?
• Share with your family one story of financial success and one story of failure.

2. Thinking, Fast and Slow

Author: Daniel Kahneman

Also on the topic of psychology, this book explores the dual systems of thought that typically drive our decisions. The first system is fast, intuitive, and emotional, while the second is slower, more deliberative, and logical. By examining these systems, the author (who won a Nobel Prize in Economic Sciences) helps readers identify the way their biases may influence their investment decisions, sets out strategies for improving decision-making processes, and looks at the importance of balancing intuitive and rational thinking when investing.

Family Discussion Points

•  Identify situations where we use System 1 and System 2 thinking.
• How might cognitive biases affect our financial decisions?
• Discuss strategies you could use to improve your decision-making as a family.

Wealth Enhancement advisors can help you with everything from retirement planning to tax management to business succession planning. Reach out today.

3. Why Didn’t They Teach Me This in School?

Author: Cary Siegel

If you’ve ever contemplated some of the gaps in financial education that aren’t addressed by the school system, this book is for you. It sets out 99 principles of money management that are easy to understand and apply, such as the importance of setting financial goals and sticking to them, along with practical tips for saving, investing, and avoiding debt. This is particularly helpful for children and young adults who would like to feel greater control over how they manage money.

Family Discussion Points

• Which principles resonate most with our family’s financial goals?
• Create a family financial plan based on the book’s teachings.
• Discuss any strategies you’ve used to avoid common financial pitfalls.

4. The Intelligent Investor

Author: Benjamin Graham

While this book was first published in 1949, it remains a foundational resource for anyone interested in learning about value investing. Some of the core concepts it covers include the importance of engaging in thorough analysis before investing, the reason why long-term approaches tend to trump short-term gains, and strategies investors can use to reduce risk. The book was updated in 2003 by Jason Zweig, a reporter for the Wall Street Journal.

Family Discussion Points

• How can we apply value investing principles to our family’s finances?
• Identify examples of companies we believe are undervalued and why.
• Discuss the importance of patience and discipline in investing.

Learning as a Family

While it’s never too late to improve your financial literacy, learning about investing early can provide your children with a solid foundation for making informed financial decisions throughout their lives. The key is to gear the education to their ages and knowledge levels.

For instance, younger children may benefit from more interactive educational resources, including websites and podcasts. Younger adults may be interested in exploring online personal finance calculators and investing simulators. As a parent, you can also help turn financial education into a habit by setting a regular schedule for reading and discussing investing books. Consider creating engaging discussions by asking questions and sharing personal insights too. Beyond making the learning process fun, this can strengthen family bonds as well.

For more information about enhancing your family’s financial literacy, contact a Wealth Enhancement Group advisor.

Frequently Asked Questions About Reading Investment Books as a Family

At what age should children start learning about investing? Children can start learning about investing as early as they show interest, often around age 8 to 10. Tailor the complexity of the information to their age and understanding.

How can families stay motivated to learn about investing? Setting shared financial goals and celebrating small milestones can help keep motivation high. Regular discussions and keeping the learning process fun and engaging are also important.

How often should families discuss their finances? Regular discussions, at least once a month, can help keep everyone informed and on track. This can also provide an opportunity to review goals and make any necessary adjustments.

Are there any other great investing books recommended for family reading? Yes, other recommended books include “The Millionaire Next Door” by Thomas Stanley and William Danko, and “Financial Intelligence” by Doug Lennick.

Advisory services offered through Wealth Enhancement Advisory Services, LLC, a registered investment advisor and affiliate of Wealth Enhancement Group®. Wealth Enhancement Group is a registered trademark of Wealth Enhancement Group, LLC.

2024-4345