Rich Dad Poor Dad

Rich Dad, Poor Dad
There is a Need
Does school prepare children for the real world? "Study hard and get good grades and you
will find a high-paying job with great benefits," my parents used to say. Their goal in life was
to provide a college education for my older sister and me, so that we would have the greatest
chance for success in life. When I finally earned my diploma in 1976-graduatingwith honors,
and near the top of my class, in accounting from Florida State University-my parents had
realized their goal. It was the crowning achievement of their lives. In accordance with the
"Master Plan," a “Big 8” accounting firm hired me, and I looked forward to a long career
and retirement at an early age. My husband, Michael, followed a similar path. We both came
from hard-workingfamilies, of modest means but with strong work ethics. Michael also
graduated with honors, but he did it twice: first as an engineer and then from law school. A
prestigious Washington, D.C., law firm that specialized in patent law, quickly recruited him
and his future seemed bright, career path well-defined and early retirement guaranteed.
Although we have been successful in our careers, theyhave not turned out quite as we
expected. We both have changed positions several times-for all the right reasons-but there
are no pension plans vesting on our behalf. Our retirement funds are growing only through
our individual contributions. Michael and I have a wonderful marriage with three great
children. As I write this, two are in college and one is just beginning high school. We havespent a fortune making sure our children have received the best education available.
One day in 1996, one of my children came home disillusioned with school. He was bored
and tired of studying. "Why should I put time into studying subjects I will never use in real
life?" he protested. Without thinking, I responded, "Because if you don't get good grades,
you won't get into college." "Regardless ofwhether I go to college," he replied, "I'm going to
be rich." "If you don't graduate from college, you won't get a good job," I responded with a
tinge of panic and motherly concern. "And if you don't have a good job, how do you plan to
get rich?" My son smirked and slowly shook his head with mild boredom. We have had this
talk many times before. He lowered his head and rolled his eyes. Mywords of motherly
wisdom were falling on deaf ears once again. Though smart and strong-willed, he has always
been a polite and respectful young man. "Mom," he began. It was my turn to be lectured.
"Get with the times! Look around; the richest people didn't get rich because of their
educations. Look at Michael Jordan and Madonna. Even Bill Gates, who dropped out of
Harvard, founded Microsoft; heis now the richest man in America, and he's still in his 30s.
There is a baseball pitcher who makes more than $4 million a year even though he has been
labeled `mentally challenged.' " There was a long silence between us. It was dawning on me
that I was giving my son the same advice my parents had given me. The world around us has
changed, but the advice hasn't. Getting a good education andmaking good grades no longer
ensures success, and nobody seems to have noticed, except our children. "Mom," he
continued, "I don't want to work as hard as you and dad do. You make a lot of money,
and we live in a huge house with lots of toys. If I follow your advice, I'll wind up like you,
working harder and harder only to pay more taxes and wind up in debt. There is no job
security anymore; Iknow all about downsizing and rightsizing. I also know that college
graduates today earn less than you did when you graduated. Look at doctors. They don't
make nearly as much money as they used to. I know I can't rely on Social Security or
company pensions for retirement. I need new answers." He was right. He needed new
answers, and so did I. My parents' advice may have worked for people born...