〃Today； the most dangerous advice you can give a child is ‘Go to school； get good grades and look for a safe secure job；' 〃 he likes to say。 〃That is old advice； and it's bad advice。 If you could see what is happening in Asia； Europe； South America； you would be as concerned as I am。〃
It's bad advice； he believes； 〃because if you want your child to have a financially secure future； they can't play by the old set of rules。 It's just too risky。〃
I asked him what he meant by 〃old rules？〃 。
〃People like me play by a different set of rules from what you play by；〃 he said。 〃What happens when a corporation announces a downsizing？〃
〃People get laid off；〃 I said。 〃Families are hurt。 Unemployment goes
up。〃
〃Yes； but what happens to the pany； in particular a public pany on the stock exchange？〃
〃The price of the stock usually goes up when the downsizing is announced；〃 I said。 〃The market likes it when a pany reduces its labor costs； either through automation or just consolidating the labor force in general。〃
〃That's right；〃 he said。 〃And when stock prices go up； people like me； the shareholders； get richer。 That is what I mean by a different set of rules。 Employees lose； owners and investors win。〃
Robert was describing not only the difference between an employee and employer； but also the difference between controlling your own destiny and giving up that control to someone else。
〃But it's hard for most people to understand why that happens；〃 I said。 〃They just think it's not fair。〃
〃That's why it is foolish to simply say to a child； ‘Get a good education；' 〃 he said。 〃It is foolish to assume that the education the school system provides will prepare your children for the world they will face upon graduation。 Each child needs more education。 Different education。 And they need to know the rules。 The different sets of rules。〃
〃There are rules of money that the rich play by； and there are the rules that the other 95 percent of the population plays by；〃 he said。 〃And the 95 percent learns those rules at home and in school。 That is why it's risky today to simply say to a child； ‘Study hard and look for a job。' A child today needs a more sophisticated education； and the current system is not delivering the goods。 I don't care how many puters they put in the classroom or how much money schools spend。 How can the education system teach a subject that it does not know？〃
So how does a parent teach their children； what the school does not？ How do you teach accounting to a child？ Won't they get bored？ And how do you teach investing when as a parent you yourself are risk averse？ Instead of teaching my children to simply play it safe； I decided it was best to teach them to play it smart。
〃So how would you teach a child about money and all the things we've talked about？〃 I asked Robert。 〃How can we make it easy for parents especially when they don't understand it themselves？〃
〃I wrote a book on the subject； 〃 he said。
〃Where is it？〃
〃In my puter。 It's been there for years in random pieces。 I add to it occasionally but I've never gotten around to put it all together。 I began writing it after my other book became a best seller； but I never finished the new one。 It's in pieces。〃
And in pieces it was。 After reading the scattered sections； I decided the book had merit and needed to be shared； especially in these changing times。 We agreed to co…author Robert's book。
I asked him how much financial information he thought a child needed。 He said it would depend on the child。 He knew at a young age that he wanted to be rich and was fortunate enough to have a father figure who was rich and willing to guide him。 Education is the foundation of success； Robert said。 Just as scholastic skills are vitally important； so are financial skills and munication skills。
What follows is the story of Robert's two dads； a rich one and a poor
one； that expounds on the skills he's developed over a lifetime。 The contrast between two dads provides an important perspective。 The book is supported； edited and assembled by me。 For any accountants who read this book； suspend your academic book knowledge and open your mind to the theories Robert presents。 Although many of them challenge the very fundamentals of generally accepted accounting principles； they provide a valuable insight into the way true investors analyze their investment decisions。
When we as parents advise our children to 〃go to school； study hard and get a good job；〃 we often do that out of cultural habit。 It has always been the right thing to do。 When I met Robert； his ideas initially startled me。 Having been raised by two fathers； he had been taught to strive for two different goals。 His educated dad advised him to work for a corporation。 His rich dad advised him to own the corporation。 Both life paths required education； but the subjects of study were pletely different。 His educated dad encouraged Robert to be a smart person。 His rich dad encouraged Robert to know how to hire smart people。
Having two dads caused many problems。 Robert's real dad was the superintendent of education for the state of Hawaii。 By the time Robert was 16； the threat of 〃If you don't get good grades； you won't get a good job〃 had little effect。 He already knew his career path was to own corporations； not to work for them。 In fact； if it had not been for a wise and persistent high school guidance counselor； Robert might not have gone on to college。 He admits that。 He was eager to start building his assets； but finally agreed that the college education would also be a benefit to him。
Truthfully； the ideas in this book are probably too far fetched and radical for most parents today。 Some parents are having a hard enough time simply keeping their children in school。 But in light of our changing times； as parents we need to be open to new and bold ideas。 To encourage children to be employees is to advise your children to pay more than their fair share of taxes over a lifetime； with little or no promise of a pension。 And it is true that taxes are a person's greatest expense。 In fact； most families work from January to mid…May for the government just to cover their taxes。 New ideas are needed and this book provides them。
Robert claims that the rich teach their children differently。 They teach their children at home； around the dinner table。 These ideas may notbe the ideas you choose to discuss with your children； but thank you for looking at them。 And I advise you to keep searching。 In my opinion； as a mom and a CPA； the concept of simply getting good grades and finding a good job is an old idea。 We need to advise our children with a greater degree of sophistication。 We need new ideas and different education。 Maybe telling our children to strive to be good employees while also striving to own their own investment corporation is not such a bad idea。
It is my hope as a mother that this book helps other parents。 It is Robert's hope to inform people that anyone can achieve prosperity if they so choose。 If today you are a gardener or a janitor or even unemployed； you have the ability to educate yourself and teach those you love to take care of themselves financially。 Remember that financial intelligence is the mental process via which w