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.

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