Summary of Rich Dad and Poor Father
Robert Kiyosaki wrote Rich Dad, Poor Dad. This is the story of Robert’s early years learning about money. Kiyosaki was raised by his biological father and his best friend, and each of them taught him different things about money and how to handle it. This book is about wealth. Wealth doesn’t necessarily have to mean being rich. Wealth can also be achieved with investments and assets. Kiyosaki’s rich father said that money should work for you and not for you.
Robert Kiyosaki, who recalled his childhood with both his fathers, started the book Rich Dad, Poor Dad. Kiyosaki grew up with two fathers. One was a wealthy father, the other was a low-income father. He was one of his best friends’ fathers and his real father. His real father was the one who was well educated and had a Ph.D. He was also the poorest. His best friend dad, however, dropped out of highschool and became one of Hawaii’s richest men. Both fathers wanted their children to be educated and find a well-paying job after college. The poor dad wanted a stable job for his son that was both lucrative and paid well. His rich father saw a job that was profitable and Kiyosaki could hold. He wanted to make sure that his investments were made and that his assets would not be taken over by creditors. His poor father wanted the best for his child, but he chose the traditional route of going to school, getting a job that pays bills and then relying on social security to retire. Poor dad became a slave to his debts and continued living in poverty. Kiyosaki saw the danger in his life at an early age. He and his best friend visited his rich father, his best friend, to learn six valuable lessons. The first lesson was called “The Rich Dont work for Money”. This is about his education on spending money. Schools should teach people about money. However, schools are not focused on how to make money. The second reason to Teach Financial Literacy is: Assets are bought by the rich. The poor have only expenses. The middle class is busy with liabilities that they consider assets. The third Mind Your Own Business is about business. Be a good employee and keep your job. The fourth book, The History of Taxes and the Power of Corporations, explains that the Robin Hood ideal is the main reason the middle class is so taxed. The reality is that taxation does not apply to the wealthy. The poor pay for their needs through the middle classes. The fifth The Rich Invest Money explains that most people work hard but don’t save enough. People need to invest in assets and not just sit on their money and earn little interest. Sixth Work to Learn- Do Not Work for Money shows that money is only possible if you give it. Being able to give and receive is the only way to truly become rich. It is common to see a lack of giving or receiving in situations of professional or financial struggle.
His rich father taught Kiyosaki the basics of financial literacy, how to have assets and not liabilities, and how money could not solve his financial problems. Poor cash flow management can lead to financial problems. Unfortunately, his dad was poor and he believed money was the solution. Spending too much money on assets and not investing it properly can result in higher taxes, greater liabilities, or even debt.
This book is relevant to classes because it addresses issues of wealth and financial literacy. These are essential skills that every child should learn. If they don’t, their chances of becoming debt-stricken as adults will be greater. If you don’t invest in or acquire assets, money is what makes the world turn.
