Raising Your Child's Financial IQ

I am listening to the audio CD of Robert Kiyosaki and Sharon Lechter's 'Raising Your Child's Financial IQ', which came in the package with the Cashflow for Kids board game that I bought recently.

I agree with most of what they say.

Our kids aren't learning an important life skill that they need to master before they leave school: financial literacy.

That's why I bought the game, so CA, I and the girls can learn basic financial concepts in a fun way that also promotes family bonding.

I was brought up in a Poor Dad environment ("Study hard, get a good job, work hard for the rest of your life..") and I am aware of the limitations I am potentially placing on my children's future if I do not take up the challenge of acquiring financial literacy - and teach them to do so.

I have to:

• get away from "I can't afford it" thinking,
• teach my girls about income, expenses, assets and liabilities,
• teach my girls the Cashflow Quadrant and the implications of being in each quadrant,
• impress on my girls the difference between rich and poor people (the rich make money first and buy luxuries last),
• get away from the dependence on job security and earned income,
• learn the different ways of making money: earned income, passive income, portfolio income and why we shouldn't stop at earned income,
  
• help my children understand that IQ is not the only life skill that matters in life. There are many other intelligences (at least 8, according to the CD) and one of the most important ones to cultivate is Financial IQ, because when you have learnt to master money and make it work for you, it frees you to have more choices. This includes giving to charitable causes and working in a low-paying job because you love what you do and aren't depending on it for your income.