In the United States, the month of April is recognized as National Financial Literacy Month. The goal of National Financial Literacy month is to raise the financial literacy of all Americans. Part of this goal centers on teaching citizens how to establish and maintain healthy financial habits. In 2011, President Barack Obama issued a presidential proclamation stating that “It is more important than ever to be knowledgeable about the consequences of our financial decisions.” President Obama also stressed that, while government will continue to strive to promote financial stability, it is important for individuals to empower themselves and their families with financial knowledge. Government backed resources have been created to help citizens raise their financial literacy in the form of websites such as www.MyMoney.gov and the establishment of a toll-free hotline 1-888-MyMoney.
These efforts by the government have generally received bi-partisan support and are laudable on many levels. Attempting to teach citizens the basics of financial literacy is important and the basic information that these resources attempt to supply individuals with can help them form a rudimentary understanding of the financial world we live in. It could be easily argued that this type of information should be part of the standard curriculum taught in schools because of its wide ranging importance and application to all citizens. One rarely applies algebra in their daily lives but teaching individuals how to budget can have far-reaching effects. Robert Kiyosaki has lamented on the lack of core financial literacy concepts taught in schools: “Our schools do well at teaching reading, writing and arithmetic, but they are horrible at preparing people to work with money. Nearly every person who graduates from school is financially illiterate.”
While we might applaud the government in its efforts to raise the financial literacy of the average citizen, one must also ask a very basic yet important question: Does the government really know what financial literacy is? Although they have good intentions, many of the resources that the government provides reinforce the conventional viewpoint of money. This conventional viewpoint stresses saving money, the horrors of debt, and explains how traditional investments can work for the average citizen. True financial literacy requires looking past the conventional wisdom that most accept as truisms and obtain a true understanding of how our financial system works and how wealth is truly created.
The genius of Robert Kiyosaki is that he has spent a lifetime in looking past the conventional wisdom and developed a true understanding of what financial literacy means. Through his writings and teachings, Robert Kiyosaki has willingly and openly shared this information with all of us. In a recent article, Robert shared the four foundational principles of literacy which can be read here.
In the fourth principle of financial literacy, Robert stresses that individuals should make their own financial decisions instead of following the crowds. He states, “The key to building great wealth is having great knowledge to act on and great wisdom to know which course of action is the best.”
As an exercise you should take the time to peruse some of the information that is provided by the government in their efforts to promote financial literacy. Then take the time to read Robert Kiyosaki’s article on what he believes the four foundational principles of financial literacy to be. Which set of principles do you want guiding you as your foundation moving forward?
Rich Dad Education and Financial Literacy
Rich Dad Education believes elevating the financial literacy of humanity requires more than a simple month dedicated to it. Rich Dad Education has made its mission to not only elevate the financial literacy of humanity, but also humanity’s financial well-being as well. This mission is the driving force of Rich Dad Education. Rich Dad Education incorporates the philosophical principles of the Robert Kiyosaki’s approach to money and combines these principles with wealth-building techniques taught through its educational offerings.
It is the sincere belief of those that work for Rich Dad Education that the combination of true financial literacy and real-world wealth creation techniques can lead to financial freedom. What you do with that freedom is up to you, but Rich Dad Education strives each and every day to create products and offerings that can help you obtain it. While April may be National Financial Literacy Month, Rich Dad Education’s dedication to you helping you achieve your dreams will continue all year long.