Kiyosaki, R. (2004). Rich Dad Poor Dad for Teens. New York, NY: Warner Books.
ISBN-10: 0446693219
•Plot Summary
School is important, but there are simply some forms of education that teens not will receive there, and one of them is an education in financial literacy. Kiyosaki learned important lessons about financial literacy from his father, and the father of his best friend, Mike. A person's IQ is not the sum total of what they can learn, every person has a different learning style, and knowing your style can help you effectively manage your finances-these are the initial steps in understanding Kiyosaki's language of financial literacy. In Part I, he encourages teens to learn their style, and to put it to use by creating a mindset of "I can be rich". In Part II, he describes his own initial experience with the relationship between work and money, how doing jobs that are repetitive can energize you and result in creative thinking-the key to financial success. Mike's father pays the boys to help out in one of his businesses, paying them less than they the feel they deserve, but young Robert catches on that if he ignores the need for money, it won't be a pressure against his drive. He and Mike begin a business of taking unsold comics, and making an in-house library, a flat fee for their friends to read comics in multiples, rather than having to but them individually at a higher cost. Lesson learned? Teens should keep their ears open for opportunities, and a secondary example is given of creating costumes as business during the Halloween rush. In Part III, the author gives the details on how to "create" money. As an entity, money can come from earnings from work, from passive sources (like real estate or businesses physically run by others) or from financial portfolios (stocks, mutual funds, etc). Perhaps one of the most important lessons of the book is also now revealed: acquire assets (something that generates income on a regular basis), not liabilities (items that don't generate money until they are sold-like televisions, skis, etc). Of interest primarily to teens, many technological gadgets are liabilities-cars, cell phones, computers, etc do not provide a means of generating money, and they require money to remain operational. It's at this point that teens also learn how to create a financial statement, so they can see what they have v what it's costing them. An inventive way to learn is explored in Chapter 7, playing games like Monopoly, and the author's own designed games CASHFLOW 101, CASHFLOW 202, CASHFLOW for KIDS and games at his site, Rich Kid Smart Kid. All of these games help teens explore the concepts of assets v liabilities, and how to accumulate only assets. By Part III, teens delve into how to find an earned income job, and what it will mean in terms of exchange, taxes, and searching for new opportunities. They also learn features of managing their assets, giving to charity, maintaining a savings account, making investments (and getting a return on them). It might seem counter intuitive, but teens learn that when they receive income, they pay themselves a percentage of that income before they do anything else toward paying on their liabilities. With this method, one has to think about how to make up the difference on those months where they fall short, without touching their savings. Finally, the topic of good debt v bad debt is explained, i.e. that paying more than the minimum balance each month on credit cards is good, while only paying that minimum will result in the debt stretching out must longer than the life of the object with which it was used to purchase.
•Critical Evaluation
Simple, but sensible methods for teens to learn about money, especially in a time when so many Americans are in serious debt due to educational costs or just overspending. Lessons they may not learn at home, teens can learn with this guide.
•Reader’s Annotation
Straightforward, but amusing anecdotes, interlaced with important financial information. See games and author's web sites for more insight and chances to test ideas.
•Information about the author
Robert Kiyosaki is Japanese-American, born and raised on the island of Hawaii. He attended college in New York, then served in Vietnam, before starting a company that sold velcro closure wallets to surfers. In 1985, he started the company to educate others in matters of business and investment, which he sold in 1985. He was able to retire at age 47.
His original book, Rich Dad Poor Dad sold 17 million copies, and was on the bestseller lists of The New York Times, The Wall Street Journal, Business Week, and USA Today. As mentioned in the book, he has also created several investment web sites to help his students better understand the principles set forth in his books and workshops.
•Genre
Non-Fiction
•Curriculum Ties
Economics
•Booktalking Ideas
Career building, money management, savings and investment for teens
•Reading Level/Interest Age
Grades 10-12/Ages 15-19
•Challenge Issues
N/A
•Why did you include this book in you’re the titles you selected?
My daughter is soon going to at an age where she will need to really understand about money management. Due to the economic crunch now present in the United States, many individuals are scrambling to make ends meet, and I don't want her to be one of those people. In addition, I really think this book can aid all teens, because the ideas are simple, and his methods are sound.
