Financial Literacy - Robert Kiyosaki's DVD
Posted by Nancy Phillips on Sun, Oct 03, 2010
Have you watched Robert Kiyosaki’s DVD “Shooting the Sacred Cows of Money?”
He and his advisory team put together a casual yet informative presentation about some of the key financial topics he feels people really need to reconsider and learn more about.
If you haven’t read any of Mr. Kiyosaki’s Rich Dad books, it is well worth your time as you will develop new perspectives in regards to the flow of money (the four quadrants), working in a “job” and what a real asset is. As he discusses, the biggest wealth transfer in history has recently occurred and the rules of money have changed significantly. One of the most profound changes occurred in 1971 when President Nixon took the U.S. dollar off the gold standard and it became money backed by debt, nothing “real.” One of his most well known quotes “Savers are losers” is something he states occurs because of the dollar becoming debt and he points out that since 1971 the U.S. dollar has lost 95% of its value. Working for assets, not money (which is highly taxed) is what Mr. Kiyosaki feels is an essential element to financial success.
Mr. Kiyosaki wants people to become financially literate so they don’t get wiped out like so many people have in the last two years. The bubble was something he predicted and was well criticized for before it occurred. The DVD really highlights the fact that is more critical than ever to begin teaching our children the vocabulary of money and the basics of personal finance so they can take care of themselves when they are adults. There is a lot of outdated advice and attitudes which exist, much of it from the industrial era.
With technology and the world changing as rapidly as it is today ( information is doubling every six to nine months), our children must learn how to ask questions, think critically and learn from their mistakes. The days of one long career are gone. In my mind, entrepreneurialism will play a bigger role in our children’s lives than it has in any previous generation.
One of the most poignant points Mr. Kiyosaki makes in the presentation for us to consider as parents is the fact that people learn best by “doing” and by repetition. Thus we must consider what good habits we are instilling in our children and how we can help them get the practice they need to develop good financial decision making abilities and good financial habits.
I look forward to your feedback,
Nancy