Rich Dad Poor Dad | A Story About Money for Kids

Introduction

“Rich Dad, Poor Dad” is a story about a young boy named Robert who learns valuable lessons about money from two dads, his real dad (Poor Dad) and his best friend’s dad (Rich Dad). This story shows kids the importance of financial wisdom and thinking differently about money.

Meet Robert and His Two Dads

Robert had two dads with very different ideas about money. His real dad, whom he called “Poor Dad,” worked hard as a teacher. Poor Dad believed in studying hard, getting good grades, and working a stable job. But his friend’s dad, “Rich Dad,” taught him about making money work for him.

Poor Dad’s Advice

Poor Dad told Robert that to be successful, he needed to get a good education and work a steady job. He believed saving money in the bank and avoiding risks was the safest way to live. Poor Dad thought that financial security came from job stability and following a traditional path.

Rich Dad’s Advice

Rich Dad had a different approach. He taught Robert about financial independence, earning money through investments, businesses, and understanding how money works. Rich Dad explained how assets (things that make money) and liabilities (things that cost money) affect finances. He believed in learning by doing and not being afraid to make mistakes.

Robert Learns About Assets and Liabilities

Rich Dad introduced Robert to the concepts of “assets” and “liabilities.” An asset, he explained, is something that puts money in your pocket, like investments or owning a business. Liabilities are things that take money out of your pocket, like buying expensive items that lose value. Rich Dad encouraged Robert to buy assets and avoid unnecessary liabilities.

Learning by Experience

To teach Robert about money, Rich Dad let him work small jobs and taught him the importance of budgeting, investing, and smart spending. Robert realized that saving wasn’t enough, he needed to grow his money by investing wisely. Through experience, Robert learned how important it is to manage money with a purpose.

The Value of Financial Education

While Poor Dad thought money wasn’t everything, Rich Dad taught that financial knowledge gives freedom and choices in life. Robert understood that while school education is important, financial education is equally necessary to handle money effectively.

Comprehension Questions:

1. Who were the two dads in Robert’s life?
2. What did Poor Dad believe about money?
3. What did Rich Dad teach Robert about assets?
4. Why did Rich Dad encourage Robert to invest in assets?
5. What is the main lesson in the story?

The Moral of the Story

The story of “Rich Dad, Poor Dad” teaches kids that financial wisdom is as important as working hard. Learning to manage money, investing in assets, and thinking differently about finances can create opportunities for a brighter future.

Important Note:

“Rich Dad Poor Dad” is an inspiring story Written By Robert Kiyosaki, and we have rewritten it in a way, that helps kids understand the value of financial education. We’ve simplified the story to teach children important lessons on managing money wisely.