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Rich Dad Scam #1: Higher Education image

Rich Dad Scam #1: Higher Education

There are all sorts of scam artists in the world. Most of the time we can spot them, like those emails that promise us millions if we’ll just give away our bank account numbers. Sometimes we don’t spot them until it’s too late or they make a mistake, like with Bernie Madoff. And sometimes we don’t know we’re being scammed at all because we’re conditioned to think from the cradle that something is the best and right advice for living.

Over the next few posts, I’m going to explore the scams that most people never know about in a series I call Rich Dad Scams. The first one we’ll explore is higher education.

The “school = success” scam

When I was young, my poor dad always told me the best path to success was to go to school. He felt that was the best way to get a good job. The problem was that my poor dad was one of the most educated people I knew, but he was always complaining about money and how unhappy he was with his work.

My rich dad, on the other hand, didn’t have a college degree. Yet he was very rich and successful. Rich dad said, “School teaches you to be an employee. If you want to be rich, don’t count on school.”

So, from a very young age, I learned that the promise of higher education for success was one of the biggest scams around. That’s why the first Rich Dad Scam identified is higher education.

Going to school doesn’t make you financially smart

Because I’m outspoken against the school system, I’m often accused of being anti-education. Nothing could be further from the truth. But “go to college” is one of those things people point at as a way of being successful without ever stopping to think if it’s true.

The Rich Dad Scam that school will make you a success is perpetrated everywhere and all the time. What will make you successful is not going to school but rather financial education—learning how money works and how to make it work for you—is what will make you successful, and, unfortunately, you can’t get that in school.

When it comes to money, going to school won’t make you smart.

Understanding value

This doesn’t mean that education isn’t important. The basic education you get in your K-12 years is important to everything that comes after. And if you want to be a teacher, a lawyer, or a doctor, then obviously you’re going to need to go to college.

But what you won’t learn in school is how money works. Education, particularly in America, doesn’t teach students how to live or be self-sufficient. Instead, it teaches us to be employees instead of our own bosses. It makes us workers instead of innovators. That’s a big reason why we call school a Rich Dad Scam. In fact, the rich use school to keep poor people poor.

Different types of intelligence

One of the worst things about school is that it recognizes only one type of intelligence—book smarts. If you aren’t book smart, you are very quickly labeled smart or stupid. As a child, I was not book smart, and I was labeled stupid. But I wasn’t stupid. I was just interested in different things. And I was bored. For instance, no one could tell me when I’d ever use calculus in my real life! Yet, I was told to comply and learn. I was being trained to be an employee.

My rich dad wasn’t book smart either. Yet, he was very smart. He had street smarts, which he used to become very rich. School doesn’t teach you to be street smart. I had to learn that from my rich dad. My poor dad thought school was incredibly important, and he was very book smart. But what did it get him? He struggled financially most of his life.

That’s another reason why we label higher education a Rich Dad Scam. The so-called experts tell you that you need it. They tell you it’s important. But it doesn’t actually do anything for you except make you a good employee.

“But I studied money in college!”

Tom Wheelwright, my Rich Dad Advisor on taxes, went to school to be an accountant and got straight A’s. He will also gladly tell you that he got no practical financial education. He learned what was needed to do a job but not how to successfully manage his own finances. And he went to school to learn about money!

People often say they learned about money in school. You may learn how to balance a checkbook in school, but you won’t learn how money really works. That’s not an accident; it’s a scam.

The rich use school to train us to be good employees. We start out being told what to do, and are rewarded for compliance. It’s very easy to transition from a school to a company where you’re told what to do. And that leads us to trust and hand things off to the government and the rich bankers who handle our 401(k). The rich use education to make themselves richer and keep you poor, and when you realize that, it’s not hard to see why it’s one of our Rich Dad Scams.

Think for yourself

The people who fall for scams are typically those who are conditioned not to think for themselves. Unfortunately, Rich Dad Scam #1, Higher Education, robs us of the independence to think for ourselves, to think like an entrepreneur, an innovator, and an investor. It instead teaches us to be dependent.

You need to learn to speak the language of money to be successful. That takes financial education, which opens up a whole new world, a world where you can succeed on your own terms. Unfortunately, our schools don’t teach that language. They teach you the basics, and then they either teach you a specific trade or skill, or they simply train you to be an employee.

Today, it’s time to start thinking for yourself. Don’t fall for this the scam of higher education. Instead, start your financial education today, and begin your journey to financial freedom.

Leave A Comment jump to leave a comment
MJ
2/17/2013 8:10:34 AM
with this kind of info I can change my ways to attract wealth and learn from other people experience. thanks Robert Kiyosaki.
Team Honeywell
3/13/2013 6:35:34 AM
Thanks Robert. I am so glad I found this out before H had kids. If I knew then, what I know now I would be a lot better off financially. Still it's never too late to learn something new. I love it.
Rico
2/28/2013 4:40:52 PM
I am still having a job. But i am not doing it for the money, but for getting the skills in my fields. i feel how i learn everyday and love it, although its stressful. School is not only for being an employee, its also for basic skills that you will need to deal in business. Its up to everyone, what they do with those skills afterwards.
Azzurra
3/1/2013 1:54:32 PM
Hi, I'm from Italy. I have to say that in my country school is considered the most important thing to have success (not only financial) in your life, I think this aspect is stronger in Europe (especially in Italy) than in USA, because of the different history sorrunding these contries. I'M 27 years old and I've been told to study to have a healthy financial life. This maybe has been worked sinc ten years ago. Now Italy is full of young peopl wiyh many university graduation and no job. And the few guys have workhaven't reached financial freedom. They have to work harder and harder, becasue they now that if they dpn't work hard companies can fire them in order to hire other unemployed people. And if you are so "lucky" not to lose your job, you are however unsatisfacted.
vamsi
3/9/2013 4:24:11 AM
Thankyou Robert
Aditya
1/30/2013 10:03:49 PM
That is exactly why I love Robert as a Mentor .
Aditya
1/30/2013 10:04:03 PM
That is exactly why I love Robert as a Mentor .
Marvin
1/31/2013 12:57:08 AM
Well I'm smart in school but stupid on finance because I dont have a mentor in my life like Robert...I'm a honest poor guy.
Maurizio
1/31/2013 6:43:10 AM
Great advised! and yes! sadly my parents aren't ok with my decision of opening a Company but Ill do it anyway
mustapher
1/31/2013 2:57:17 PM
thats why i will never upgrade....thank you robert
mustapher
1/31/2013 2:57:21 PM
thats why i will never upgrade....thank you robert
mustapher
1/31/2013 2:57:27 PM
thats why i will never upgrade....thank you robert
mustapher
1/31/2013 2:57:31 PM
thats why i will never upgrade....thank you robert
lewystone
2/1/2013 3:43:37 AM
you are grate Robert.
Ricardo
2/2/2013 6:02:23 AM
This is great stuff, telling them how it is.
Anteneh
2/3/2013 3:46:51 AM
I start thinking for my self right now !
Martin
2/3/2013 10:43:13 PM
I could be the poster boy of this higher education scam that Robert is talking about here. After finishing my dual master's degree, I now have 70k in crushing student loan debt and still no high paying job like they promised or any worthwhile financial education from my schooling. I am just so thankful that I found the Rich Dad Coaching program to help elevate my financial IQ in order to lay the foundation and plan the steps to get out of this financial mess I created. Thank you for writing this article Robert, it gives me more motivation than ever.
Isaac
2/4/2013 10:58:01 AM
For the sake of making the wisest decision possible…if you were 32-Years Old & almost 33-Years Old… I'm just leaving the Army after being in nearly 9-Years w/ an Honorable Discharge & the Montgomery G.I. Bill which I can convert over to the Post 9/11 G.I. Bill. I was looking to go to school for "Electrical Engineering", but after reading a few books…it doesn't sound like such a good idea. I've read "Rich Dad, Poor Dad", "Unfair Advantage", and now I'm starting on "Cashflow Quadrant". If you got nearly $60k to work with for the Montgomery G.I. Bill...where would you start being in my shoes being armed with what the "Rich Dad Operating Company" can offer? Real Estate looks like a wise decision from the books. I read the above post from "Martin" saying, "After finishing my dual master's degree, I now have 70k in crushing student loan debt and still no high paying job like they promised or any worthwhile financial education from my schooling."…I figured he'd 'a' been golden when I read dual master's degree…I want to make a wise decision & was looking for opinions from those who could possibly help. Thank you all in advance!
Andy
Wednesday, February 20, 2013
Hi Isaac, You're onto it with the property thing I'd say. We've just started investing in property. We started with $65k (NZD) and turned that into $120K equity within a month and $500-600 per week in cashflow terms. That one was a particularly good bargain but there's probably plenty out there, next one here we come! Feel free to add me on facebook, You're probably the only other person on here who isn't a robot or trying to sign you up to some bull get rich quick scheme. Andy
farid
2/14/2013 9:47:44 AM
be your own boss...make more assets...and let money work for u...not u work for money.. :)
roy
5/12/2013 12:13:22 AM
This for sure a great light for me. Ever since i encountered rich dad books i have had a totally new perception about money and being successful, considering my background as an African, Nigerian in particular. I appreciate this rich dad company and Rob my virtual coach,instructor and father in finance whose faith i follow closely.
BroVic
10/17/2013 1:21:31 PM
Well, I think education has its purpose. Society cannot develop without it. But like I said, it's a matter of purpose - education is not designed to make you wealthy and this is where we missed it. Whether is actually a scam/conspiracy is another thing. Truth be told, entrepreneurs look to the educational system to get good workers for their businesses. I recently had to employ staff for certain projects (a first for me) and I realized the importance of having having well educated workers. So, I guess some people will naturally gravitate towards the E quadrant and even stay there for life.
BroVic
10/17/2013 1:22:18 PM
Well, I think education has its purpose. Society cannot develop without it. But like I said, it's a matter of purpose - education is not designed to make you wealthy and this is where we missed it. Whether is actually a scam/conspiracy is another thing. Truth be told, entrepreneurs look to the educational system to get good workers for their businesses. I recently had to employ staff for certain projects (a first for me) and I realized the importance of having having well educated workers. So, I guess some people will naturally gravitate towards the E quadrant and even stay there for life.
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