Thursday, December 30, 2010

Book Review: Rich Kid, Smart Kid

Book Review: Rich Kid, Smart Kid by Robert Kiyosaki

It seems that most people, when I ask them what their parents taught them about money say something like this: "Not much." Most kids do learn from their parents -by watching how they handle their money (and listening to how they talk about it). Some parents teach their kids how to save, some teach how to give, and some even teach thrift and frugality. If you were taught some or all of those things then consider yourself lucky. But there are only a handful of people out there who were taught by their parents how to invest their money. This book teaches you as a parent how to share this important information (and helps you understand why - even if you were never taught it yourself.

I loved this book. The subtitle is "Giving Your Child A Financial Head Start" and while it is not comprehensive, I am very much using much of what he shares to help my kids. I have already taught (thanks to this book) Riker a few simple concepts:

Me: "Hey Riker, what's the difference between assets and liabilities?"
Riker: "That's easy. Assets put money into your pocket, liabilities take money out of your pocket."

The book is mostly a book about financial philosophy and the importance of teaching kids about money. It is fairly opinionated, definitely not comprehensive, and a bit repetitive. But if you want to teach your kids how to handle you money then I highly recommend this book as an easy to read starting point. I rate it 4.2 ninja stars out of 5.

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