About The “Lessons From” Series
The “Lessons From” series are bite-sized summaries of books about financial literacy for parents raising money-smart kids.
Today we continue the series on a book called Rich Dad Poor Dad: What The Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki, Sharon L. Lechter. (Link to Summary #1)
Chapter 2 – Lesson One: The Rich Don’t Work For Money
The author’s Rich Dad had a unique way of teaching:
“You work for me, I’ll teach you. You don’t work for me, I won’t teach you. I can teach you faster if you work, and I’m wasting my time if you just want to sit and listen, like you do in school.”
“The poor and the middle class work for money. The rich have money work for them.”
“I want to teach you to master the power of money. Not be afraid of it. And they don’t teach that in school. If you don’t learn it, you become a slave to money.”
“The pattern of get up, go to work, pay bills, get up, go to work, pay bills… Offer them more money, and they continue the cycle by also increasing their spending. This is what I call the Rat Race.”
“And as you get older, your toys get more expensive. A new car, a boat and a big house to impress your friends. Fear pushes you out the door, and desire calls to you. Enticing you toward the rocks. That’s the trap.”
“Unfortunately, for many people, school is the end, not the beginning.”
“Great civilizations collapsed when the gap between the haves and havenots was too great. America is on the same course, proving once again that history repeats itself, because we do not learn from history. We only memorize historical dates and names, not the lesson.”
“If schools taught people about money, there would be more money and lower prices, but schools focus only on teaching people to work for money, not how to harness money’s power.”
The author’s rich dad explained that the rich really did “make money.” They did not work for it.
The author’s Rich Dad believed the best reason to get a job was to learn something, not for the paycheck: “Keep working boys, but the sooner you forget about needing a paycheck, the easier your adult life will be. Keep using your brain, work for free, and soon your mind will show you ways of making money far beyond what I could ever pay you.”
The author also created a business when he was only 9 years old that rented a small library of comic books to the neighborhood kids: “The best part was that our business generated money for us, even when we weren’t physically there. Our money worked for us.”
Coming Next Time… LESSON TWO: WHY TEACH FINANCIAL LITERACY
Or dive right in yourself:Rich Dad Poor Dad: What The Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!
P.S. This book summary has been completely rewritten and published on the Kindle platform. If you'd like to have this summary available at any time on your Kindle app or device, it's available here.