How Teaching Money to Children Can Help Them Build Real Wealth as Adults

As a father of two great kids who keep me very busy, teaching money to children did not use to be high on my list of priorities. I mean, there was teaching them how to cross the street, to eat their vegetables at dinner and what to do in case of a fire. These things seemed urgent. Money matters, not so much.

Until, that is, I read Robert Kiyosaki's "Rich Dad, Poor Dad." Many who know me will attest to the fact that Mr. Kiyosaki has quickly become my all-time favorite hero. His honest and inspiring story woke me up to the fact that if I didn't start educating my kids about money now, they would stand little chance of ever succeeding as adults.

In his book, Mr. Kiyosaki explains the difference between the two Dads he had in his life growing up. His own father was a hardworking man who believed in saving pennies and staying out of debt. Along with his mother, Robert's father encouraged him to go to college, get a degree and work hard all his life just as they had.

However, in a fortunate twist of fate (pun intended), Robert was exposed on an almost daily basis to his best friend's father who happened to be a self-made millionaire. Robert's friend's Dad, or his Rich Dad, knew the values of giving kids financial education and took time every day to explain to Robert and his friend how to use debt to build real wealth.

Robert learned the true risks involved in saving versus investing and how truly wealthy people understand the difference between good debt and bad debt.

I'm eternally grateful for Mr. Kiyosaki's willingness to share his life experience with me. It has drastically changed not only how I handle my own finances but how I approach teaching money to children in my household.