Rich Dad,Poor Dad Robert T.Kiyosaki

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Rich Dad,Poor Dad Robert T.Kiyosaki

• By Christian Lutin, Mohammad Samrat, Jessica
  Nagamootoo, Juilana Velazquez

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Introduction

• Does school prepare children for the real world?
• Her parents always used to say Study hard and
  get good grades and you will find a high-paying
  job with great benefits.
• Says that the goal of her parents was to provide
  a college education her and her older sister.

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Intro cont.

• When she got older she earned her diploma in 1976
  graduated with honors, in accounting from Florida
  State University.
• She was hired by a Big 8 accounting firm and
  looked forward to a long career and an early
  retirement.
• But after changing her job positions many times
  she was quick to realize that there was no
  pension plans vesting on their behalf.

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Intro cont.

• In 1996 one of her kids was disappointed with
  school he claimed that he was board and tired of
  studying.
• She said Why should I put time into studying
  subjects I will never use in real life?
• With out a hesitation she replied Because if you
  dont get good grades you wont get in to a good
  college.
• After her son replied Regardless of whether I go
  to college Im going to be rich.
• Then they got in a discussion on how will he get
  rich if he does not go to a good college and he
  replies by saying that school is not the only way
  to get rich by naming celebrities that got famous
  off sports, singing, and making corporations.

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Intro cont.

• One day her husband called her in to his office
  saying she needs to meet some one it was Mr.
  Kiyosaki.
• Mr. Kiyosaki represented a game o them called
  CASHFLOW it was a new educational game.
• The game looked like monopoly but it had two
  tracks the one inside and outside. The object of
  the game was to get out of the inside track what
  was called the Rat Race and to get to the outer
  track called Fast Track.

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What is Rat Race

• Robert then defined the "Rat Race" for them. Rat
  Race is simple its just the average life of a
  person like a kid does good in school goes to a
  nice college then looks for a job that is safe
  with a steady income then he will have money to
  waste and starts dating then has twice the income
  with new partner. Then they have a kid then the
  family now needs to support the kid and needs a
  bigger house so thats more money then they need
  to get second job and now they are in debt .
• The only way to get out of the "Rat Race" is to
  prove your proficiency at both accounting and
  investing, arguably two of the most difficult
  subjects to master.

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Intro again -__-

• After having people play the game many of them
  did not like it because they could not get out of
  the Rat Race. Because they where not educated in
  school to learn how to use there money wisely.

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Meeting up!

• Her husband set up a dinner meeting with Robert
  and his wife within that next week. Although it
  was there first social get-together, they felt as
  if they had known each other for years. They
  found out there was a lot in common. They covered
  the gamut, from sports and plays to restaurants
  and socio-economic issues. They talked about the
  changing world spent a lot of time discussing how
  most Americans have little or nothing saved for
  retirement, as well as the almost bankrupt state
  of Social Security and Medicare.
• Would my children be required to pay for the
  retirement of 75 million baby boomers? They
  wondered if people realize how risky it is to
  depend on a pension plan.

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Ending Intro

• At the end of the introduction they asked how he
  new every thing he told them and he said he
  taught him self and how he wrote a book on it and
  it became a best seller and he had another one on
  his way but it is in pieces and they agreed to
  finish the book with him.

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Chapter 1!

• Starts off describing how he has two fathers and
  how one is this crazy smart father with a Ph.D.
  and completed four years of undergraduate work in
  under two years and how he studied at Stanford
  University, the University of Chicago, and
  Northwestern University to do his advanced
  studies, all on full financial scholarships.
• The other father never finished the eighth grade.
• But both men were successful in their careers,
  working hard all their lives. Both earned
  substantial incomes. Yet one struggled
  financially all his life. The other would become
  one of the richest men in Hawaii.

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Chapter 1 cont.

• Both the fathers where good men and giving the
  son information about money and they both had
  different views on money and how to make it.
• For example, one dad would say, "The love of
  money is the root of all evil." The other, "The
  lack of money is the root of all evil."

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Chapter 1 cont.

• He later explains why the rich get richer and the
  poor get poor and the middle class is suck in
  debt is because school teaches scholastic and
  professional skills, but not on financial skills.

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Chapter 1 cont.

• It later describes how he chooses to listen to
  the father that is rich and we find out that it
  is the one who did not go to school because he
  learned how to be financially stable on his own
  and not from years of school.

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Robert Frost

• Frost is one of his favorite poets.
• The Road Not Taken Two roads diverged in a
  yellow wood, And sorry I could not travel both
  And be one traveler, long I stood And looked down
  one as far as I could To where it bent in the
  undergrowth Then took the other, as just as
  fair, And having perhaps the better claim,
  Because it was grassy and wanted wear Though as
  for that the passing there Had worn them really
  about the same, And both that morning equally lay
  In leaves no step had trodden black. Oh, I kept
  the first for another day! Yet knowing how way
  leads onto way, I doubted if I should ever come
  back. I shall be telling this with a sigh
  Somewhere ages and ages hence Two roads diverged
  in a wood, and I took the one less traveled by,
  And that has made all the difference. Robert
  Frost(1916)

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Lessons!

• 1 The Rich Don't Work for Money
• 2 Why Teach Financial Literacy?
• 3 Mind Your own Business
• 4 The History of Taxes and the Power of
  Corporations
• 5 The Rich Invent Money
• 6 Work to Learn Don't Work for Money