A Study of "Rich Dad, Poor Dad", by Robert Kiyosaki

Summary of Rich Dad, Poor Dad

Rich Dad, Poor Dad written by Robert Kiyosaki is a story of Robert as a youth learning about monetary lifestyles. Kiyosaki had two fathers, his biological and his best friends, each taught him different things as far as how important money is and what he should do with money when he gets it. This book teaches about wealth, which does not necessarily mean rich; you can be wealthy with assets and investments not just money. Kiyosakis rich dad said, let money work for you, dont work for money.

The book Rich Dad, Poor Dad began with Robert Kiyosaki describing his youth with his two fathers. Kiyosaki had one rich dad and one poor dad, one was highly educated and one dropped out of high school, one was his real father and one was his best friends father. Kiyosakis real dad was the one that was highly educated with a Ph.D., he was the poor one also, and his other dad (his best friends father) had dropped out of high school, became one of the richest men in Hawaii. Both wanted their sons to receive a good education and get a profitable job after college. But, the poor dad saw a profitable job as one his son could work for and have good benefits to be stable in the future. His rich dad saw a profitable job as one Kiyosaki could own, to invest his profits and have assets, not liabilities.

Kiyosakis poor dad wanted the best for his son but his way was the traditional go to school, get a good job to pay bills, and rely on social security for retirement. This way resulted in the poor dad staying poor, paying bills constantly and dying with debt. Kiyosaki realized the track he was on at a young age, so he and his best friend went to his best friends dad (his rich dad) to learn six lessons (below are the six lessons, with major quotes from rich dad) to becoming financially wealthy. The first lesson was The Rich Dont Work for Money this focuses on how he was taught to spend money. If schools taught people about money, there should be more money and lower prices, but schools focus only on teaching people to work for money, not how to harness moneys power. The second Why Teach Financial Literacy, teaches : The rich buy assets. The poor only have expenses. The middle class busy liabilities they think are assets. The third Mind Your Own Business, focuses on business. Keep your daytime job, be a great hard-working employee, but keep building that asset column. The fourth The History of Taxes and the Power of Corporations, emphasizes the reason the middle class is so heavily taxed is because of the Robin Hood ideal. The real reality is that the rich are not taxed. Its the middle class that pays for the poor. The fifth The Rich Invest Money, states, Most people work hard and save money, but people need to invest in assets instead of letting money sit and only gain little interest. The sixth Work to Learn- Dont Work for Money reveals in order to have money you need to give money. To be truly rich, we need to be able to give as well as to receive. In cases of financial or professional struggle, there is often a lack of giving and receiving.

When it comes down to it his rich dad taught Kiyosaki how to be financially literate, how to have assets not liabilities, and that money would not solve financial problems. Financial problems are caused by poor cash flow management, which poor dad had but he felt that money was the answer to all problems. More money leads to higher taxes, greater liabilities and lavish spending, which could lead to debt if not properly invested or spent wisely on assets.

This book pertains to class because it teaches about wealth and financial literacy, which are Issues of Life. If these are not learned a child entering adulthood will have a greater chance of entering debt and struggling through life. Money makes the world go round, if you dont invest or gain assets your ignorant.

Works Cited

1. Kiyosaki, R., & Lechter, S. (1997). Rich Dad, Poor Dad. Warner Business Books.
2. Kiyosaki, R., & Lechter, S. (2000). Rich Dad's Guide to Investing: What the Rich Invest in That the Poor and Middle Class Do Not! Warner Business Books.
3. Kiyosaki, R., & Lechter, S. (2001). Rich Dad's Rich Kid, Smart Kid: Giving Your Children a Financial Headstart. Warner Business Books.
4. Kiyosaki, R., & Lechter, S. (2002). Rich Dad's Cashflow Quadrant: Rich Dad's Guide to Financial Freedom. Warner Business Books.
5. Kiyosaki, R., & Lechter, S. (2004). Rich Dad's Prophecy: Why the Biggest Stock Market Crash in History Is Still Coming... and How You Can Prepare Yourself and Profit from It! Business Plus.
6. Kiyosaki, R., & Lechter, S. (2008). Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money. Business Plus.
7. Kiyosaki, R., & Lechter, S. (2010). Rich Dad's Conspiracy of the Rich: The 8 New Rules of Money. Business Plus.
8. Kiyosaki, R., & Lechter, S. (2012). Rich Dad's Retire Young Retire Rich: How to Get Rich and Stay Rich. Business Plus.
9. Kiyosaki, R., & Lechter, S. (2013). Rich Dad's Success Stories: Real Life Success Stories from Real Life People Who Followed the Rich Dad Lessons. Plata Publishing.
10. Kiyosaki, R., & Lechter, S. (2019). Rich Dad's Before You Quit Your Job: 10 Real-Life Lessons Every Entrepreneur Should Know About Building a Multimillion-Dollar Business. Plata Publishing.