Lessons from Rich Dad

This morning was my second board meeting at Rich Dad headquarters. Ever since I got involved with the company to organize Cashflow games based on Robert’s Cashflow 101 board game I’ve been invited to several meetings to get a flavor of the Rich Dad way of doing business. It should come as no surprise that meetings at Rich Dad bare litte resemblance to corp America gettogethers.

Kiyosaki is definitely a colorful speaker and will not let the occasional profanity stand in the way of getting his lessons across. I understand Robert has his critics, but who can argue with the stance that our public school system is systemically dumbing down our children? Who can argue with the fact that our high schools leave people ill prepared to make serious financial decisions that impact the greater part of our lives? Who can argue that most people have no clue how to raise money other then by way of a job? Who can argue that most mistakenly believe their home is an asset?

Some of Robert’s opponents don’t share his view that our wealth disparicy has little to do with having a complete formal education. Sure, studies show higher educated minions generate more income than unschooled minions because many misguided managers still use the presence of formal education as part of the promotional process.

Regardless, most at the very top (I mean the top 1%) never finished college. The wealthiest man in L.A. (Kirk Kerkorian) dropped out of the 8th grade and never looked back. Go tell him he should have finished school. And why don’t you drop a line to Bill Gates and advise him to do the same.

The fundamental principles of entrepeneurship you will not get from a school teacher or a college professor. These folks are confined to the world of academics… of theory. They have never left the classroom for Pete’s sake! A lot of educators believe their place in society is above the art of raising money. Our school system is designed to churn out workers and soldiers. And don't expect anything to change soon. The endless wall of bureaucracy and powerful teachers unions will make change to the system next to impossible.

Financial education still doesn't seem to be on the Department of Education's to-do list and the major banks are grateful. Heck, those same banks that milk people for their hard-earned money finance the government that maintains the status quo and the educators -unwittingly or not- play their part.

Most educators -of couse there are exceptions- have never built a business, so how do you expect them to teach you how to create, finance, and let alone manage one? Would you learn how to fly a plane from someone who has played MS Flight Simulator but has never flown the real thing? I have nothing against teachers, don't get me wrong. Many of them have the best of intentions, but too many of them refuse to see the bigger picture and what is happening to society today.

The solution? Enhance your financial IQ!

End rant.

Have a great day!