Rich Dad Poor Dad is one of the best-known personal finance books ever written. It was first published in 1997 by Robert Kiyosaki together with Sharon Lechter. In this lesson of Mondosol’s Make Money course, Kofi explains the book’s main ideas in plain words, and also what critics say, so you can make up your own mind.
Read the article, watch the videos, or press play and listen.
In this article
The story of the two dads
The book is told as a story about two father figures. The “poor dad” is the author’s own father: highly educated, hard-working, and focused on a safe job and a steady salary. The “rich dad” is his friend’s father, a business owner with less schooling who taught the boys to think about money differently.
The two dads are a way to compare two mindsets. One says: study hard, get a secure job, and the salary will look after you. The other says: learn how money works, and build or buy things that pay you.
5 big ideas from the book
1. Learn about money, not only about your job
The book argues that schools teach many subjects but rarely teach how money works. Its answer is financial literacy: understanding income, expenses, assets, liabilities and taxes.
2. Assets put money in your pocket
The book’s simplest definition: an asset puts money into your pocket, and a liability takes money out. This is different from the accounting definition, and we look at both in the Assets vs. Liabilities lesson.
3. Make money work for you
Instead of only working for money, the book encourages using money to buy things that earn more money, like a small business, property or investments. See Make Money Work for You.
4. Watch out for the “rat race”
When income goes up, spending often goes up too, so people stay stuck working just to pay bills. The book calls this the rat race.
5. Mind your fears
Fear of losing money, and the wish to look rich, can both lead to poor choices. The book encourages learning, starting small and thinking long term.
A simple example: two friends, same salary
Mia and Leo each earn 25,000 kr a month after tax. The numbers are made up to show the idea.
| Each month | Mia | Leo |
|---|---|---|
| Income | 25,000 kr | 25,000 kr |
| Living costs | 21,000 kr | 21,000 kr |
| New car loan | 3,500 kr | 0 kr |
| Saved or invested | 500 kr | 4,000 kr |
| After 5 years, money put aside (before any growth) | 30,000 kr | 240,000 kr |
(500 kr × 60 months = 30,000 kr; 4,000 kr × 60 months = 240,000 kr.) Same salary, very different position. That is the heart of the book’s message: what you do with your money matters as much as how much you earn.
What critics say
Many readers say the book changed how they think about money. But it also has serious critics, and a good learner looks at both sides:
- Few specific steps. The book is strong on mindset but light on practical details, such as how to judge a good investment.
- Risk is played down. Property, businesses and investments can lose money. Borrowing to invest makes losses bigger.
- The story may be simplified. Some reviewers have questioned whether “rich dad” was a single real person or a teaching device.
- Education still matters. For many careers, a good education is one of the best investments you can make. Learning about money adds to it; it does not replace it.
Watch: the book in a few minutes
Video: “Rich Dad Poor Dad – ANIMATED Summary (Robert Kiyosaki)” by Alex Dekora, on YouTube.
Video: “Rich Dad Poor Dad, by Robert Kiyosaki – Animated Book Summary” by MentalEFit, on YouTube.
These summaries are made by independent channels. Watch them with the critics’ points above in mind.
Try it: Kofi’s money-beliefs check
- Write down three things you heard about money growing up (for example, “money is hard to get”).
- For each one, ask: is this always true, sometimes true, or not true?
- Write one new belief you would like to practise, such as “I can learn how money works”.
- Pick one small action this week: read one lesson, track one week of spending, or save one fixed amount.
FAQ
Is Rich Dad Poor Dad a true story?
It is presented as the author’s life story, but some reviewers have questioned parts of it. It is best read as a story that teaches ideas, not as a step-by-step guide.
Is the book good for teenagers?
Many people read it young because the ideas are simple. Read it together with a basic budgeting guide, and remember that the risky parts (borrowing to invest) are not for beginners.
Does the book say I should not go to school?
No. It says school often does not teach money skills, so you should learn them as well.
What is the most useful idea in the book?
For most beginners: spend less than you earn, and use the difference to build things that can earn money over time.
Keep learning
- Practise it: open the interactive Make Money lessons in your learning journey.
- Previous lesson: Module review: budgeting.
- Next lesson: Make money work for you.
- Related: The power of saving and compound interest.
This article is educational and is not financial advice. It summarises and comments on a published book; Mondosol is not connected to the author or publisher. Kofi is a character from Mondosol’s story cast. Example numbers are made up to show how the idea works.
