Most of us aren’t given a financial education

-


Okay, let’s go back to Robert Kiyosaki’s story. When Robert and Mike were still young, Rich Dad took them under his wing, and gave them total access to his private business dealings. They sat in on his meetings with bankers, attorneys, and accountants, and discovered what being a successful business owner involves. 

As a result, the boys learned a lot, and they learned it quickly – but before long, they began to encounter problems. You see, the skills the pair were learning from rich dad made it pretty hard for them to take school very seriously. 

Over and over again, they were told that study and hard work lead naturally to success and wealth: the idea that financial literacy might also be important didn’t seem to occur to anyone besides rich dad. 

Children aren’t taught about subjects like saving or investing, and as a consequence are clueless about topics like compound interest. Clear proof of this is the fact that, today, even high schoolers often max out their credit cards.

This lack of training in financial intelligence is a problem not only for today’s youth but also for highly educated adults, many of whom make poor decisions with their money. Think about it: Most people completely lack a retirement plan. In the United States 50 percent of the workforce are without pensions. And of the rest, nearly 75 to 80 percent have ineffective pensions. 

Well, clearly, society has left us poorly equipped in terms of financial knowledge. But getting financially literate is one of Kiyosaki's key lessons. So what do you do? Educate yourself! And start establishing a financial strategy

Comments

Post a Comment

Popular posts from this blog

History unfolds in a cyclical pattern.

-
Image
Humankind is obsessed with time –⁠ measuring it, dividing it, observing it, and most recently, controlling it. Throughout the course of our species’s history, humans have developed three distinct ways of thinking about time. The first is chaotic time, which was the dominant theory during our primitive days. In this view, historical events occur randomly. There’s no point in trying to determine the causes of events or to try and improve society because history doesn’t follow a path and there’s nothing people can do to influence it. The second theory of time, which became prevalent during the classical period, was cyclical time. The idea was that events occurred in cycles, much like the rotation of the earth, the orbit of the moon, or the procession of the zodiac. Humans can participate in and shape history by performing the right actions at the right times, thus winning favor from the gods. As such, this theory gives people more agency than in chaotic time. Finally, the thir...
Read more

Rich people don’t work for money

-
Image
Before we get to the famous financial lessons, we’re going tell you a story. The story of 9-year old Robert Kiyosaki.  It begins in the 1950’s. Robert and his friend Mike were curious boys with big ambitions: When they grew up, they wanted to become rich and make a lot of money. But just how they were going to accomplish that they didn’t actually know. So, after a failed attempt to produce coins from melted toothpaste tubes, the boys decided to get some advice. They asked their dads how they could start becoming rich. You might be able to guess what Robert’s own well-educated but “poor dad” replied: “Go to school, study, and find a good job.” It’s familiar advice – but it’s pretty misguided.  If you follow guidance like this, you’ll spend your entire life breaking your back to increase your pay, while others – the government, bill collectors, and your bosses – take most of the reward. In other words, Robert’s poor dad might as well have said, “Go and join the rat r...
Read more

The ideal of the successful extrovert prevails in the Western world.

-
Image
Who would you consider more competent: an extrovert who captivates other people’s attention and sets the tone, or an introvert who sits quietly in the corner and listens? Western society has a very clear answer to such questions. Extroverts are not only considered more qualified and intelligent because of their sociability but also more interesting and cooperative. Extroverts are often seen as being more physically attractive and nonchalant. The introvert prototype, on the other hand, is pale, nondescript and awkward – maybe even has bad skin or seems to be from a different planet. Based on this way of seeing things, extroversion is considered favorable for success in the Western world. This is highlighted by the author’s trip to a seminar by motivational speaker Tony Robbins. The event exalted extroversion above all else, calling it the key to standing out of the crowd in a competitive world. This trend is why professors at the Harvard Business School make it their mission...
Read more