A Critique Paper about Financial Literacy:

(A book of Rich Dad, Poor Dad)

Rich Dad Poor Dad is a 1997 book written by Robert Kiyosaki and Sharon Lechter.
It advocates the importance of financial literacy (financial education), financial
independence and building wealth through investing in assets, real estate investing,
starting and owning businesses, as well as increasing one's financial intelligence
(financial IQ). Robert concentrates on four individuals in the book: himself, his best
buddy Mike, Poor Dad, and Rich Dad. Robert's biological father is a bad father figure. In
the book, Robert characterizes his father as a well-educated man who earned his
bachelor's degree in two years rather than four. His life philosophy was to work hard in
school, acquire good marks, and find a high-paying career. Dad, on the other hand, had
no idea how to invest money. He offered his children the same counsel that most poor
and middle-class parents do. Never realizing that to get out of the money-making rut,
you required more than a book education. The book refers to financial literacy which is
an investment in human capital that can be beneficial when making decisions
concerning pensions, savings, mortgages, and other financial matters. Kiyosaki's
biological father is well educated, yet he never seems to advance in life, remaining
trapped in a vicious circle of desiring more but never receiving it, and never being able
to realize his goals of prosperity. The root of the problem is financial ignorance. In
contrast to this position, his wealthy father is illiterate yet takes advantage of corporate
power to advance in life. The book's main themes include bold entrepreneurship and
taking action. In their quest of riches, successful people make it a point not to
contemplate lethargy, fear, or uncertainty.
The book addresses a number of interconnected themes relating to a better
financial existence. Kiyosaki attempts to persuade his readers that riches is not as
elusive as they believe. He even gives parents advice on how to prepare their children
for the harsh world of finance. The book addresses issues such as defining an asset
and a liability, debunking the myth that a person must make a high income to become
wealthy, and educating parents on how to teach their children about money in a way
that benefits them (Rich Dad, Poor Dad). Reading this book is a fantastic time
investment. When you start devouring page after page of this book, you get more
returns than your investment. Kiyosaki provides actionable ideas based on real-life
experiences for novices who want to reach economic prosperity. It teaches us concepts
in applied economics that we should have learned in school or at home. The
fundamentals of financial literacy, such as accounting, investing, market understanding,
and pertinent laws, are described in a way that even a layperson can understand. It is
critical to develop financial literacy before engaging in any commercial activity. People
should never labor for the sake of making money; instead, they should work to learn.
The author also draws the reader's attention to how the poor continue to live in poverty
by working for companies, while corporations continue to profit the wealthy. The
reader's attention is also called to the reality that money is invented by the rich.
Therefore, fundamentals of financial literacy on the other hand such as accounting,
investing, market understanding, and pertinent laws, are described in a way that even a
layperson can understand. The author underlines the necessity of having a healthy
financial situation in order to live a more fulfilling life. He claims that even if you are an
intellectual genius, a top student, or a gold medalist, you can still fail if you lack financial
knowledge. The book explains the distinction between assets and liabilities in ways we
never expected. According to the author, whereas the wealthy invest in assets and let
money work for them, the middle class invests in liabilities and makes them work for
money. The book received a seven-point rating because it discusses financial concerns
in a way that everyone, whether educated or ignorant, can grasp and implement in their
daily lives.

https://www.businessinsider.com/money-personal-finances-book-reading-economics-
investment-savings-assets-freedom-2021-7?
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