What Rich Kids Learn
Rich Dad Poor Dad
By Robert T. Kiyosaki
“What the Rich Teach Their Kids About Money—That the Poor and Middle Class Do Not!” That’s the theme of Rich Dad Poor Dad, a 294-page financial education book by Robert Kiyosaki. This insightful book begins with young Robert asking his father, a schoolteacher with degrees from several prominent universities, how to get rich. His father told him to use his head. The author laments that schools focus on scholastic and professional skills but not on financial education. He states, “A person can be highly educated, professionally successful, and financially illiterate.”
Robert Kiyosaki is a financial writer and entrepreneur. He was born in Hilo, Hawaii, in 1947 and is the founder of the Rich Dad Company, a private financial education firm. Unlike most financial writers who preach safety, Kiyosaki believes in taking risks, if the possible return is sufficient. Two of his early companies went bankrupt.
Robert Kiyosaki, author of Rich Dad, Poor Dad.
He is the author of over 25 books, including two he co-authored with Donald Trump. Rich Dad, Poor Dad, is the bestselling financial education book in history. It is the story of two fathers. Robert’s real father is actually middle class, but he struggled to pay bills and save money. After the nine-year-old boy asks his father how to get rich, Robert and his friend Mike decide to make their own nickel coins. Robert’s father then explains the meaning of counterfeiting.
Robert knew that Mike’s father was a small businessman. He was also a high-school dropout, but still, Robert asked him how to make money. Mike’s father agrees to teach him the concepts through work. Mike’s father hires him for ten cents a week. But that’s part of the first lesson; the rich don’t work for money. Work to learn and make money work for you. Thus begins Robert Kiyosaki’s financial education.
Mike Huckabee interviews author Robert Kiyosaki.
The book asserts that the primary objective of the educational system is to teach youth to enter the working world as it already exists and therefore to become the next generation of good employees. I would say that the current system doesn’t achieve even that limited objective. If your parents don’t know how to become rich and school isn’t teaching you, then you need to find a mentor or train yourself. This book could be a starting point.
Click on the image to buy the book.
Rich Dad, Poor Dad places great emphasis on understanding the difference between an asset and a liability. According to the author, “An asset puts money in my pocket. A liability takes money out of my pocket.” I had difficulty accepting this definition because, according to the author, a home is a liability. Owners spend a good portion of their lives paying for a home and it only generates expenditures in the form of upkeep and taxes. Assets would be a business generating an income, preferably one that does not require your constant presence, or property where the mortgage is paid by the tenant. According to Kiyosaki, “The rich acquire assets, and the poor and middle class acquire liabilities.” The author cites one measure of wealth as being how long you could survive if you stopped working. For most people that would only be a few weeks or months.
Scattered throughout the book are simple charts and graphs that help illustrate financial concepts. Most of the book is easy to understand. I found parts of it to be captivating, other parts were difficult to understand and some of it was as dull as an accounting class. Several have told me the book is life-changing and live by the concepts they learned from it.
Have you read the Rich Dad, Poor Dad? Do you agree with the principles put forth in the book? Let us know in the comment section below.
