Rich Dad, Poor Dad â€“ How Does Our Upbringing Impact Our Financial Choices?
Several weeks ago we raffled off a copy of Robert T. Kiyosakiâ€™s book â€œRich Dad, Poor Dad.â€ In his book, Kiyosaki discusses how upper class parents raise their children differently from those with low socio-economic status. His topics of discussion range from the development of value systems, to the intricacies of when and how to discuss money, to what kids learn from their parents in terms of investing.
This book reminded me of a seminar I attended a few years back which focussed on how wealth and economic status impact how we live our lives. Part of the presentation focused on the common characteristics associated with each economic class. While much of the researcherâ€™s data could be considered stereotypical assumptions, the conclusions presented provide an interesting look at the mindset of a cross-section of our society.
Interestingly, the researcher stated that the different economic classes live their lives with a focus on different time periods (the past, present or future). Iâ€™ll outline some of the researcherâ€™s thoughts about each economic class below.
The researcher stated that the lower class lives for the present. Surviving paycheck to paycheck and wondering how to provide the next meal, the lower classâ€™s focus is on â€œnowâ€ and how to get through today.
According to the presenter, the middle class lives for the future. Without the worry of daily survival, this class works hard to forward its position in society. Parents in this class encourage their kids to work hard and go to school, hoping for the next generation to make it farther than their own.
Finally the presenter stated that the upper class lives for the past. With the pressure on to maintain the family name and not squander the familyâ€™s fortune, members of the upper class feel a strong sense of tradition and spend their time working to uphold that standard.
The book and presentation got me to wondering if there is something to this idea that our upbringing impacts our financial future and the decisions we make, even as adults. Iâ€™m interested in hearing your thoughts on this topic!