Why “A” Students Work for “C” Students and “B” Students Work for the Government | Robert T. Kiyosaki

Summary of: Why “A” Students Work for “C” Students and “B” Students Work for the Government: Rich Dad’s Guide to Financial Education for Parents
By: Robert T. Kiyosaki


Embark on a journey to better understand financial education and the importance of imparting it to young minds. In his book ‘Why “A” Students Work for “C” Students and “B” Students Work for the Government’, Robert T. Kiyosaki explores the crucial role of teaching children about money and the various income quadrants in society. Providing insight into the three windows of learning – Quantum Learning, Rebellious Learning, and Professional Learning – Kiyosaki stresses the importance of a well-rounded financial education that covers ordinary, portfolio, and passive income. With an assertive stance against the entitlement mentality, this book summary will leave you with a fresh outlook on instilling values of hard work and self-sufficiency in the next generation.

Financial Education for Children

Financial education for children should start when they can recognize the difference between bills. It takes years of learning, divided into three windows. The first is Quantum Learning, which occurs from birth to about age 12. During this stage, children can learn quickly, and games like Monopoly can be used to engage both hemispheres of the brain. Rebellious Learning is the second stage, which happens around age 12 when children want to make their own decisions. Parents can educate them by open discussions about financial concerns. The final stage is Professional Learning, which takes place in young adulthood. This is the time to apply what has been taught to their own lives and choose a suitable career path.

Choosing the Right Quadrant

The focus shouldn’t be on choosing a specific profession but on finding the right quadrant to work in. The four quadrants are E (employee), S (small business/self-employed), B (big business/entrepreneur), and I (investor). The school system prepares students for the E and S quadrants, but the real financial independence lies in the B and I quadrants. Successful entrepreneurs and investors need to be generalists, not specialists. While grades in school reflect mastery of a subject, it’s not indicative of success in the B and I quadrants. Moving from one quadrant to another is possible based on your primary source of income.

Teach Your Children About Income

Transition to new quadrants in cashflow requires a transformation in your primary income source. Recognize the three types of income: ordinary, portfolio, and passive. Ensure your children learn about these income types as most schools teach only healthiest rate taxed ordinary income. Remember, assets generate cash flow and liabilities steal money out of your pocket. Teach your kids why rental properties or passive income sources, not your residence, are assets. Monopoly is a game to teach kids these principles and remember that financial independence demands passive income. While teachers work for ordinary income, invest in your children’s financial education.

Financial Education for Future Security

Schools have failed to provide young people with financial education, causing them to graduate uncertain about their future and desperately seeking employment to fulfill their basic need for safety. Rich people are not necessarily greedy; instead, desperation fosters a sense of entitlement that is antithetical to the capitalist spirit. To satisfy the need for safety through education, parents should encourage their children to seek out opportunities and gain real-world experience instead of just a paycheck. This way, young people can have a sense of control over their financial future and eventually move towards total self-actualization.

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