Review of: Rich Dad Poor Dad for Teens

Rich Dad Poor Dad for Teens – the secrets of money that you don’t learn about in school, by Robert T. Kiyosaki with Sharon L. Lechter, C.P.A., copyright 2004, published by Warner Books and Little Brown and Company

Rich Dad, Poor Dad for Teens
Summary:
This is yet another book in which Kiyosaki and Lechter expound the virtues of thinking outside the salary box and getting to passive income. This one is geared to, surprise surprise, teens.

The author’s begin by reassuring the teens that they are smart, using a few tools (like a quiz) to help the reader define what they are good at. They go on to suggest that the teens focus on money (learning, reading, tracking their allowance, deciding what they want and etc). They point out that the people you spend your time with are big factors in determining what your future will be.

Kiyosaki gives (potentially theoretical) examples from his own life to illustrate points such as how working to learn instead of earn can be better in the long run. In one of his stories, he worked in a local store that sold comic books. When they didn’t sell, the distributor came back and tore off the cover, then the store owner threw them away. Although it is illegal to sell these, Robert set up a reading room in his house and charged other kids to come in and read them. He learned to look for opportunities to make a profit.

The idea of asking empowering questions is also covered – such as turning the sentence “I can’t afford the things I want” around to be “How can I afford the things I want?”

In addition, the author’s cover some basic financial literacy concepts.

Read this book to understand and address:

• Basic concepts behind financial statements
• Ideas for teens to earn money via endeavors of their own
• Ways for teens to prompt parents, teachers and mentors to aide their financial education.

• Presentation of earned, passive and portfolio income types
• Introduction of simple concepts of assets vs. liabilities, cash flow statements including a simple way to create their own financial statements
• Suggestions of field trips like sitting with parents while they pay bills, looking at parents financial statement (or create one for them), going to work with parent, doing the grocery planning/shopping for a week, going along with parents and geting mentored on how they buy major appliances, going to a brokerage firm for explanations of investments, looking at people working at McDonalds to see what kinds of income are being earned and ideas on how to earn money as teens.

• Less of a sales job for the Cash Flow games
• More respectful treatment of the teen reader – at times it felt as if the author’s were talking down to them
• More fresh material – a lot of the material is what is covered in Rich Dad Poor Dad – what the rich teach their kids about money that the poor and middle class do not!

Favorite quotes:
“Life is filled with ups and downs, pluses and minuses, good days and bad. In the financial world we call these assets and liabilities. One puts money into your pocket and one takes money out.”

“While some of your friends may be logging major couch time in front of the TV, getting nowhere, you may very well find yourself updating your financial statement, following your stocks online, or brainstorming about business ideas with other friends who, like you, want to own assets instead of liabilities.”