I was at my local library and ran across an old Kiyosaki book with an interesting title. For those of you thinking back fondly to when you were forced to read Crime and Punishment check yourself that’s Dostoyevsky. Robert Kiyosaki is the Rich Dad series author and would be real estate mogul who is famous for imparting financial advice. The book Rich Dad’s Rich Kid Smart Kid is over 10 years old now but the title intrigued me due to my interest in imparting financial wisdom to my kids.
Rich Dad’s Rich Kid Smart Kid is a quick easy read that can be boiled down to a few useful principles. Most of these are fairly obvious but worth repeating in summary form.
- Children all have different learning styles and parents need to understand what that child’s unique style is an help them harness it so they can form a successful life plan
- Trying to force a child into a style they will not be successful in leads to frustration and substandard results.
- Formal schooling under serves non academic learning styles and financial education principles.
- Parents must fill in the gaps and help their children find their correct learning style, build a life plan around it, and teach basic financial principles that lead to success. This needs to start early in life and according to Kiyosaki the ages 9-15 are especially critical.
- The concept of making your money work for you vs. working for your money is the critical idea that is repeated. Teaching the difference between income producing assets vs. things that depreciate in value and cost money is critical to creating the mindset of the rich.
My favorite takeaway from the book was a few examples in the appendix on how to make financial education fun for children and turn it into a game of sorts. The example given was explaining business using examples they know things like how a Mcdonalds, hotel, or theme park and explaining to them how things they know work. I plan to start teaching my kids (7 and 4) these lessons ASAP to help mold a positive financial mindset early in their lives and may check out the Cashflow game developed by the author.
Rich Dad’s Rich Kid Smart Kid Haiku Summary
All kids have potential
Teach them finances early
Thinking rich is key