Give Books That Make a Difference

By Michelle Singletary
Sunday, November 26, 2006

John Ruskin, a British art critic and author, said this about books: "All books are divisible into two classes: the books of the hour, and the books of all time."

I think there is a third class of books: books that inform for a lifetime. I have come to realize that prosperity happens on purpose -- read the right financial book, and it can change your life.

So as you are out shopping for the holidays, think about choosing a gift that has a long-term value. In fact, this year my favorite financial gifts are books.

In many ways, this list is an answer to some of the many e-mails and letters I get from folks asking me what financial books they should buy for themselves or as gifts.

For example, Peg Calder, who is retired and living in Vermont, wrote: "Although I have been a money worrier most of my life, I find that I am worrying about it even more now. I am financially secure and think this is an emotional rather than fiscal issue with me. Have you found any books dealing with this?"

If there is a money worrier in your life, get him or her Olivia Mellan's "Money Harmony: Resolving Money Conflicts in Your Life and Relationships." This is a book for both individuals and couples searching for financial peace.

"Money harmony comes from within," Mellan writes. "It cannot be bought by simply acquiring more money."

For retirees worried about that next stage in their life, I also suggest "The New Retirement: The Ultimate Guide to the Rest of Your Life" by Jan Cullinane and Cathy Fitzgerald. The authors understand that retirement can be stressful for a lot of people. In fact, they point out that of the 42 life events that are the most stressful (the death of a spouse being No. 1), retirement comes in 10th.

People with retirement financial worries will benefit from "The Retirement Catch-Up Guide: 54 Real-Life Lessons to Boost Your Future Resources Now!" by Ellen Hoffman. Hoffman profiles people who have been able to retire despite low-paying jobs, poor saving habits or credit card debt. Another good retirement guide is "How to Retire Happy: The 12 Most Important Decisions You Must Make Before You Retire" by former Washington Post columnist Stan Hinden.

I often get letters from people asking for tips on books about buying a home. One reader wrote: "My son and his fiancee are 23 years old and are hoping to buy their own first house. Can you recommend a concise book that would give them a quick primer on what not to do and what to definitely do?"

If someone in your life is in the market to buy a house, I suggest "House Poor: Pumped-Up Prices, Rising Rates, and Mortgages on Steroids" by June Fletcher.

For the parents, get "Raising Money Smart Kids: What They Need to Know About Money -- and How to Tell Them" by Janet Bodnar. If they have young children between ages 8 and 12, buy Neale S. Godfrey's "Ultimate Kids' Money Book." If you want to teach young children about charitable giving, get "The Giving Book" by Ellen Sabin. This 64-page, spiral-bound book includes journal pages and fun activities intended to teach children ages 6 to 11 the importance of philanthropy.

Looking for a good basic personal finance book that covers a lot of ground? Try "Smart and Simple Financial Strategies for Busy People" by Jane Bryant Quinn. For the spendthrift in your life, get Dave Ramsey's "The Total Money Makeover" or "Financial Peace Revisited."

The two best investment books are the newly revised "The Only Investment Guide You'll Ever Need" by Andrew Tobias and "A Random Walk Down Wall Street" by economist Burton G. Malkiel.

Here's a book for the friend or family member who doesn't get that Christmas is not all about the presents: "Hundred Dollar Holiday: The Case for a More Joyful Christmas" by Bill McKibben. I pull this book out every year.

"The point is not to stop giving; the point is to give things that matter," McKibben writes. "Give things that are rare -- time, attention, memory, whimsy. We run short on these things in our lives, even as we have an endless supply of software, hardware, ready-to-wear."

Finally, here are a few personal finance books that are classics, ones that I consider to be must-reads:

· "The Richest Man in Babylon" by George S. Clason. This book is full of time-tested advice on saving and investing.

· Benjamin Franklin's "The Way to Wealth." Franklin is known for being penny-wise, and you won't be pound foolish for buying this pocket-size book that takes less than an hour to read.

· "Your Money or Your Life: Transforming Your Relationship With Money and Achieving Financial Independence" by Joe Dominguez and Vicki Robin. This book dares you to examine how you are spending your money and your time.

Okay, I doubt any of these books will produce a "wow" when unwrapped. But this year, instead of the same old tie or blouse or scarf, take the time to give someone a gift that makes good financial sense.

· On the air: Michelle Singletary discusses personal finance Tuesdays on NPR's "Day to Day" program and online athttp://www.npr.org.

· By mail: Readers can write to her at The Washington Post, 1150 15th St. NW, Washington, D.C. 20071.

· By e-mail:singletarym@washpost.com.

Comments and questions are welcome, but because of the volume of mail, personal responses are not always possible. Please note that comments or questions may be used in a future column, with the writer's name, unless a specific request to do otherwise is indicated.