Financial Education Books
– For Parents –
Rich Dad, Poor Dad
by Robert T. Kiyosaki
First place in our comparison of financial education for adults was taken by the book of Robert T. Kiyosaki ‚Rich Dad Poor Dad‘. In this book the author takes the reader back to his childhood and tells about his two fathers. His own father represents the ´Poor Dad` who has barely managed his financial life, while his friend’s father represents the ´Rich Dad` who taught him valuable lessons about money. Due to the clear distinction made by the different approaches of his two fathers, the author was able to quickly recognize which strategies lead to financial success in the long run and which do not. In doing so, the reader is transported back to childhood and learns what distinguishes financially successful people from those who always have money problems. Among other things, it is explained that it is not the level of income that is the most important factor, but rather how much of it is retained and sensibly invested. Furthermore, it is illuminated what exactly an asset is and what is not. For example, home ownership as an asset is questioned and discussed. In the book there are not many concrete steps how to get exactly into the implementation, but the author puts more emphasis on first understanding the big picture and the principles, in order to then apply them in his own life. Therefore, this book is an excellent introduction to building the right mindset to belong to the circle of Rich Dads/Moms. Despite the fact that the majority of the book deals with learning processes from the author’s childhood, it is still recommended for all age groups. The slightly different perspective makes it more interesting to read and entertaining.
Smart Money Smart Kids
by Dave Ramsey & Rachel Cruze
The second place of our comparison goes deeper into the matter and deals with concrete strategies to teach children the most important features of financial life and prepare them for their journey. The author Dave Ramsey describes that in his twenties he was about to drive his family into financial difficulties. He put all his heart and soul into improving his financial situation and giving his family a carefree life. What is interesting about the book is that the author teamed up with his daughter in the writing process. She describes the growing up and the financial teachings of her father from her perspective. This enables the reader to understand both sides and to enter his or her child’s world of thoughts. In addition, the authors derive their strategies partly from Bible quotations, which links the more economic topic with religion in an interesting way.
The Opposite of Spoiled
by Ron Lieber
Third place in our comparison illuminates financial education from a different direction. Why do young adults have more and more problems with money? Because as children they were spoiled by their parents and therefore could not establish a healthy relationship with the handling of money. Children often get far too much attention from their ´helicopter parents` and therefore can never learn to be independent. In addition, they are often showered with gifts and thus completely lose touch with material value. The author explains that it is very important to teach children a sense of responsibility as early as possible, to assign them smaller household tasks or to create clear rules to which they must adhere. Concrete instructions are given on how this can be integrated into everyday family life. In addition, it is explained how the supposedly unpleasant topic of money can and must be discussed with your children so that they develop an understanding of what far-reaching decisions have to be made in dealing with money. The topic of a small jobs for the children is also discussed in order to prepare them for the world of work as quickly as possible and to help them understand how hard it is to work for money.
Make Your Child a Money Genius
by Beth Kobliner
As the title indicates, the author has made it her goal to provide support to even somewhat insecure parents to provide their children a decent financial education. The book is written in a very simple way, is easy to understand and addresses just about every point regarding financial education that could become relevant in the child’s growing up. The author goes into detail on the different age groups ‚Preschool, Elementary School, Middle School, High School, College and Young Adults‘. Complex issues are explained in an easily understandable way, numerous practical tips are given and rules of conduct are established. In addition, it is explained how exactly to talk about money with your children, which topics should be discussed and which not. In addition, one chapter deals with support for the parents themselves, so that the financial situation of the whole family can be analysed and improved. In this context help is given, for example on the topics of insurance, sensible investments or home ownership, so that parents can be the best role models for their children.
Why „A“ Students work for „C“ Students
by Robert T. Kiyosaki
It is no coincidence that Robert T. Kiyosaki’s book made it into our comparison a second time. He sheds light on the topic of financial education in a somewhat more exotic way. Our existing education system is outdated and deadlocked. Students are taught from beginning to work hard to get good grades and eventually study. They are A- or B-students who either become specialists in their field or seek a permanent job in the public sector. Unfortunately, these jobs are paid less and less, are outsourced abroad or the costs of education can only be managed with large amounts of credit. On the other hand, the author describes the C-students, who do not necessarily have the best grades, but are not totally committed to the outdated high school requirements. On the contrary, they find out quite quickly what is really important to them and what they enjoy. Often they develop a passion that, coupled with a healthy business sense, can lead to them starting their own successful business, hiring the A or B students as their workers and ultimately leading a much more fulfilling and independent financial and personal life. Of course the author does not recommend to strive for or accept poor grades from the children, but the reader is given new food for thought in order to look beyond the horizon together with and for his children and to think about new ways for financial education.