Rich Dad Poor Dad Reflection

2997 Words Oct 19th, 2013 12 Pages
Verania, Angelica M. BSA 2-10

ECON 2013 Prof. Aileen Camba

“Rich Dad Poor Dad” Summary
Robert Kiyosaki has two fathers, one is his poor dad and the other one is his rich dad. His educated dad whom he calls his poor dad is his biological father and his rich dad is Mike‟s, his best friend, father. Both have their own perspective about money and both have different principles in life. As a kid, Robert wanted to know how to get rich because they were tired of other kids not wanting to play with them because they were 'poor kids'. His educated dad told him to learn how to make money. Since he was still a kid that time, he and his best friend Mike came up with a plan of literally making their own money. His educated dad and suggested to
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Why Teach Financial Literacy? School prepares us for our future careers. We were taught by our parents to go in school, get high grade, get a college degree and get a safe and secure job. What the school doesn‟t teach us is how to be financially literate. How to handle money and how can money works for us. A big part of the population doesn‟t know that there are many different ways of earning money besides getting a safe secure job. This chapter of the book tells us how rich people and poor and middle class people handle their money. The first rule is to distinguish between assets and liabilities. Assets for the rich are those who generate money. The poor and middle class often mistakenly distinguish their liabilities as their assets. For example, a middle class man distinguishes his/her personal car as an asset but what his/her car only do is taking away money from his pocket. His/her money was spent for car loan. This doesn't mean not to buy a home or car, just think don't think of them as assets because what they only do is take away money from your pockets. An asset earns you money and a liability burns your money. Keep you assets bigger than your liabilities and keep your income higher than what you spend. That‟s what rich people always do. Mind Your Own Business In this chapter, the author slowly introduces the concept of real estate investing and uses McDonald‟s as an

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