What does money mean to us? 7 books on how to deal with them

A serious and at the same time fascinating study of the laws of the consumer society, the relationship between people and money – in Russia and the world. Psychotherapist Anna Fenko, from the University of Twente (Netherlands), talks about the “demons of the irrational” that constantly make us break the rules of reasonable behavior and make impulsive purchases, take out loans and buy things to compensate for our lack of self-confidence. Why do we give gifts? Why do we collect art? How does excess income or lack of money affect our behavior? We cannot escape the power of money and things, but when we are aware of this, we can feel freer. Including in relation to money and things.

2. “Psychological traps of money”

Gary Belsky, Thomas Gilovich, Alpina Publisher, 2011

Another book about our economic behavior. Is it much easier for you to blow a gift of money or a random lottery win than to spend exactly the same amount from your savings? If your answer is yes, then you are in a psychological trap. After all, this means that money received from different sources has different values ​​for you. We make similar mistakes at every step, and they cost us dearly. Psychologist Thomas Gilovich (with input from journalist Gary Belsky) has taken it upon himself to help us recognize and avoid the many pitfalls that keep our personal finances slipping through our fingers. Excessive caution in some cases and unjustified risk in others, fear of change and the power of false stereotypes, overconfidence and herd mentality – these are the pitfalls due to which we risk being stranded. By and large, this book is a kind of master class in behavioral economics, in other words, the art of spending and saving money, which most of us would do well to take.

3. “How to teach a child to handle money”

Joeline Godfrey, The Good Book, 2006

For 20 years, American Joline Godfrey has run the Independent Funds School, which teaches California families, including children and teenagers, the basics of financial literacy. She summarized her experience in a convenient and colorful guide on financial education for children from 5 to 18 years old, which will help parents raise their children thrifty, responsible, able to make informed decisions. “This book,” the author writes, “allows parents to maintain the line between overprotectiveness that prevents children from acquiring vital financial skills, and the imposition of painful preoccupations in which money is perceived as a source of power and well-being.”

4. “A Brief History of Money. Where did they come from? How do they work? How will it change in the future?

Andrey Ostalsky, Amphora, 2015

The book of the journalist and publicist Andrey Ostalsky, formerly an employee of the most authoritative English newspaper Financial Times and editor-in-chief of the Russian service of the BBC (2001-2009) is not at all a dry reference book for specialists. This is a collection of entertaining financial essays designed for ordinary readers who want to understand “how money works, what is its secret, how it will change in the future.” The book is read easily and with enthusiasm, contributing not only to the understanding of complex economic processes, but also to understanding how they affect each of us. First published in 2008, the book immediately won the Enlightener award from the Dynasty Foundation.

5. “The Secret Meaning of Money”

Klu Madanes, Claudio Madanes, Klass, 2006

What role does money play in family conflicts? We can give money to immediately take it away, promise it so as not to fulfill the promise, hold it, so that later we can bestow it beyond all expectations. Often money problems are just the tip of the iceberg, under which other, deeper problems are hidden. But sometimes money itself can underlie conflicts involving issues of love and justice. American family therapist Clu Madanes and her brother, economist Claudio Madanes, explore the phenomenon of money as a symbolic means by which people are able not only to influence others, but also to express their feelings. The authors offer a set of rules that help to reasonably organize a household budget and avoid quarrels with a spouse, parents and children.

6. “Warren Buffett. How to turn $5 into $50 billion

Robert Hagstrom, Mann, Ivanov & Ferber, 2015

When it comes to entrepreneur Warren Buffett, one of the richest men in the world, the huge numbers are the most striking. Unlike most investors who think in hundreds and thousands, Buffett lives in a world of billions: he is worth over $100 billion. Years ago, investment strategist Robert Hagstrom succumbed to the charm of Buffett’s personality and mindset, scrutinizing his remarks and decisions over decades, and then recounting his findings in this book. Market trends change, booms and busts follow each other, but Buffett’s concept continues to work. The details are in these 12 chapters on psychology, philosophy, economics and other aspects of the life of a great investor.

7. “Children and money”

Tatyana Arefieva, Speech, 2006

At what age should you start talking to your kids about money? How much and how often to give out pocket money? Should children be financially rewarded for helping out around the house or getting good grades in school? How to protect a child from dangerous situations related to money (violence, debt, gambling, and so on)? Russian sociologist and psychologist Tatyana Arefyeva answers these and other questions that inevitably arise in parents at some point. The book describes games and exercises that will help the child to form their own (adequate and rational) principles in dealing with money.