rich+dad's+rich+kid,+smart+kid

Rich Dad's Rich Kid, Smart Kid

"Rich Kid, Smart Kid", a parenting book from the author of "Rich Dad, Smart Dad" Robert Kiyosaki, is about raising your kids to be not only book smart but money smart as well. He maintains that all children are born "smart" or equipped with the tools they need to succeed in life, but they may not share the same intelligences. He says that there are seven intelligences that people can have: verbal, numerical, spatial, physical, intrapersonal, interpersonal, and environmental.

1. Verbal- this is a commonly used measure in today’s world, it is also the intelligence mostly taught in schools as a measure of IQ. 2. Numerical- genius in this area is exhibited by a strong grasp of numbers and math. 3. Spatial- This is most commonly used by artists and architects and helps them see the whole picture. 4. Physical- This type of genius is most common among professional athletes and is a measure of strength and athletic ability. 5. Intrapersonal- A genius in this area is someone with high self esteem and doesn’t let anything get to them. 6. Interpersonal- someone who is a great communicator would have this genius. 7. Environmental- These people are good at farming and interacting with their environment.

He uses Tiger Woods as an example saying that he is so successful because he has all seven geniuses, as an athlete he exhibits physical and intrapersonal genius, and he needed all of the other geniuses to get into Stanford. Kiyosaki also advocates making your children mentally strong before letting them have money, he says to not let them even whine that they do not care about money and that an investment is too risky for them, but instead you should help them develop confidence early on in life. The author relies on his maxim from his previous books, "the more money you need, the less power you have", in order to show parents that they need to educate their kids to have power over their money and not let it control them. He recommends getting your kids interested in learning personal finance by making them play Monopoly and other money related board games. One major piece of advice he gives parents is that they must not be hypocrites but instead they have to practice risk taking and investing before teaching their kids about it. The author contends that schools are inefficient and are the only companies on earth that are allowed to blame their customers for their failures. He says that kids need to find new ways to learn outside of the classroom and that they need to learn basic practical skills in order to better themselves. In fact Kiyosaki encourages parents to take their children out of public school and place them in private schools or home school them in order to improve their learning environment. He says that our educational system is based upon a model used in Prussia in the 18th century, this system was designed to churn out loyal employees and soldiers, making children into followers and not leaders.

The next section is about the need to adapt in the information age and how parents need to train their children to be ready for anything. According to the author the ideas and desires of the information age have greatly changed from the industrial age, people in the industrial age wanted to keep the same job as long as humanly possible and were considered more important as they got older, whereas now people change jobs all the time and youth is valued, people are beginning to rely on new ideas and turn away from the old, ingrained methods of thinking. You need to teach your children to adapt at a very young age now because if they do not then they will be swept away by the new ideas that are constantly being implemented. Kiyosaki tells parents to ingrain the idea that their children need to retire by age 30 and to avoid thinking like an employee but instead try to build their own companies or start near the top of the corporate ladder. They cannot rely on job security now a days and instead need to find a different way to think in order to find financial freedom. According to the author one out of every hundred Americans is rich, four are living comfortably, four work for a living, 56 rely on government welfare checks, and the rest are dead. The author says that your childs best chance at becoming a millionaire is by starting their own company and building on it, because if they are personally invested they will work tirelessly to make it successful. He recommends that you start ignoring their report cards and instead make them write their own financial statement each month so they learn early on how to keep track of their money. Kiyosaki says that you must never teach your children to save their money in the bank because the interest they recieve usually only matches the rate of inflation and the government taxes the interest so you end up with a loss. You need to have you kids practice a three piggy bank system, ten percent of their money goes towards tithing to a church or charity, they should save only enough for living expenses for the next year, and they should use the rest for capital investment in stocks or starting up their own business. The author says that it is imperative that you teach your children how banks work so that they can distinguish good debt, or loans that you can pay back in full after investing the money, from bad debt, spending on vice items through use of credit. Teach your children to find new and creative ways to earn their money in order to get what they want, encourage your child to open a profitable lemonade stand and teach them that in order to make money they need to risk money. Kiyosaki says that you must never give a child an allowance without making them earn it in a proportional way, making them learn the value of a dollar and that money never comes free. Kids should know that the greatest risk of all is never taking a risk at all and having to learn from that mistake. A parent's duty is to educate their children and to help them find what they are good at in order to help them capitalize on their expertise and to teach them how to have a better financial future.