Why “A” Students Work for “C” Students Summary, Review PDF

We are drilled early on to work long hours, avoid debt, and set aside money for retirement. However, we are not educated on personal finance or taught how to interpret a financial report.

The book Why “A” Students Work For “C” Students and “B” Students Work For The Government explains that the global financial crisis we are facing today is really a crisis in education. 

Our education system is not designed to teach students about personal finance, so it’s up to parents to do so. However, you may need to do a little research first.

The author Robert Kiyosaki will show you and your children the value of a solid financial education and give you some of the resources you need to start the conversation with your own children. This process should begin early in life and continue into early adulthood.

You may be wondering if you should read the book. This book summary will tell you everything about this book so you can decide if it is worth your time.

At the end of this book summary, I’ll also tell you the best way to get rich by reading and writing

Without further ado, let’s get started. 

Why “A” Students Work for “C” Students Book Summary

Lesson 1: Make sure your children understand the difference between “regular” income and “investment” or “passive” income.

The cash flow quadrants we described earlier can be rearranged. But how?

To move from one quadrant to another, you need to change your main source of income. There are three main categories of income: “normal” wages, “portfolio” income, and “passive” income.

Most schools only teach the ability to work for a specific salary. Financial assets such as retirement accounts and savings accounts are subject to taxation.

Another argument for teaching tax knowledge to the next generation. There’s a lot for everyone to learn, so it’s ideal to start now.

Most investors focus on capital gains and income from their investments. Still, the tax burden and potential for loss are higher than for ordinary income. When looking for a stock portfolio, it can be difficult to find a truly diversified portfolio because people tend to invest in similar companies. If one company falls, the others are likely to follow suit.

Passive income can also be referred to as cash flow. Anything that can be sold for a profit is considered an asset. Something that consumes your resources is called a liability. Real estate is often mistakenly called an asset when it should be considered a liability.

Some examples of real assets are apartment buildings that are rented to tenants. They are taxed at the minimum allowable rate. One of the most obvious benefits of passive income is that it can help you become financially independent.

One of the lessons of Monopoly is the value of a steady stream of passive income. Real estate developments, such as houses and hotels, bring in a steady stream of money in the game. Without this, you cannot win. If you do not invest your money in real estate, you’ll simply lose it.

Your children will be better prepared for their future financial needs if they know the three main income streams. Unfortunately, educational institutions are powerless to help these students.

Almost all educators can support themselves financially. Knowledgeable people in the field of education. People often cannot distinguish between the three different types of income. Therefore, it is up to parents to teach their children how to manage money.

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Lesson 2: Young people gain confidence and security through financial education.

When it comes to financial literacy, many high school graduates are frighteningly unprepared. They will do anything to keep a good paying job if they can get one. Many top executives care less about the success of their company and more about their golden parachute for retirement. That’s because our basic requirement of feeling secure in school is not being met.

Psychologist Abraham Maslow established a hierarchy of needs in 1943. According to his theory, our most basic physiological needs, such as food and shelter, are at the base of a pyramid.

Only when these basic needs are satisfied, according to Maslow, can we move on to higher needs such as security, affection, recognition and fulfillment.

In Maslow’s hierarchy of needs, security is right after work, ethics, possessions and material possessions. Due to a lack of financial literacy, students leave school unprepared for the future and in need of a job. Therefore, people in need resort to extreme measures.

The wealthy have a reputation of being seen as greedy by many. Reading authors like Charles Dickens’ A Christmas Carol in the classroom perpetuates the stereotype that the rich are the bad guys.

Lack inevitably leads to greed. An entitlement mentality that grows out of neediness is at odds with the ethos of capitalism. On the other hand, wealthy people can be extremely helpful.

How can parents best use education to address this concern for their children’s safety? When your children enter the workforce, do not tell them to get a part-time job, tell them to look for opportunities.

Instead of being paid, they could gain valuable experience by working for a mentor. They should also consider working at a fast food chain in a variety of positions (such as cashier, cook, janitor, and shift supervisor) to learn the industry from the ground up. Minimum wage is less important than expanding your horizons and learning about the world at this stage of your life.

Young people can take control of their financial future by implementing these basic strategies. Feeling secure is the starting point for the journey to full self-realization.

Lesson 3: Do not give your children pocket money.

Desperation can lead to a sense of entitlement. This mindset is deeply rooted in modern culture. We have created a society where people feel they are entitled to freebies.

You certainly do not want to teach your children something like that! A sense of entitlement can be avoided in children by taking one simple step.

Regardless of their financial situation, parents have a bad habit of buying their children’s affection. At some point, they will have the means to buy their children cars and fancy sneakers. If children observe this all the time, they may believe that they can get anything they want if they just ask nicely. After seeing a friend with a new high-end gaming system, they decide to treat themselves.

Unfortunately, educational institutions are not doing much to combat students’ sense of entitlement either. These days, trophies are handed out to all students who participate in a school tournament. Can children learn anything from this? Just by being there, they have already won, right?

The value of money and how to handle it should be explained to children in simple terms. It serves as a medium of trade. The discussion is over. For your help, I will give you a reward. A greater act of generosity is rewarded with even greater benefits. When a child receives charity, he learns that he has a right to it.

Instead of giving your children a weekly allowance, develop a system for recognizing and rewarding their efforts. If they do more than usual, they will be rewarded more. As a bonus, you can also teach them the value of generosity.

In addition to financial compensation, they will gain valuable knowledge and skills through their participation.

A fish can feed a man for a day, as the old saying goes. Give someone an education, and they can take care of themselves indefinitely. Think about teaching your child to fish before you give him a fish. How will you teach him to ask for a fish?

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Lesson 4: It is important that your children learn the difference between financial advice and financial education.

The origin of many financial issues is the same. It is easy to confuse financial counseling with financial education. The two are very different from each other. Taking financial advice means consulting a professional who can help you make decisions regarding your financial situation. Getting a solid financial education means finding out what you need to know and taking matters into your own hands.

Ask yourself, “What’s in it for them?” when someone tells you how to spend your money. One piece of advice you might get from a financial planner is to broaden your investment base. But no one can predict with certainty which stocks will go up and which will go down. They do not care, either, because they are guaranteed to earn their commission no matter what.

Instead of helping you save, the banker’s goal is to get you to apply for loans, such as credit cards and mortgages. The money you deposit into a bank account is not used to line the bank’s pockets. The bank gains financial stability by taking advantage of your debt.

If you allow stockbrokers and banks to take advantage of your financial ignorance, you are just another customer to them. However, if you are financially savvy, you can keep the money you earn. Learning the language, not just the words, but the relationships between them, is the cornerstone of any solid education.

One of the most basic concepts in finance is “income.” It is easy to quantify the growth of one’s income when investing in a tangible asset such as rental property. It is also easy to understand how debt would reduce income.

Many people have an unfavorable view of debt. From a young age, we have been taught that it is something to be avoided at all costs. However, in certain scenarios, debt can also be a burden. Debt can even be to your advantage.

For example, if you take out a loan to buy a rental property, the rental income will allow you to cover both the loan payments and the maintenance costs of the property. Therefore, the debt is now an asset.

Real learning takes place when you are able to absorb information from multiple perspectives at once. Depending on the context, debt can have positive or negative effects. Millionaires are seen as either greedy or ambitious, depending on who you ask. This is a skill we hope our children acquire. We should not tell them how to use their resources. They need access to information so they can make informed decisions, and we should give it to them.

Why “A” Students Work for “C” Students Book Review

Why “A” Students Work for “C” Students is a great book I’d like to recommend to anyone who is interested in personal finance. If you spend some time digesting the ideas, it might make a positive impact on your life.

All parents wish their offspring to have a better life than themselves. A solid foundation in personal finance can pave the way for this and give them a significant edge in the world. However, we cannot rely on outside sources to fulfill this educational obligation. To prepare our children for adulthood, we must teach them the language of finance.

One evening each week should be set aside to teach people about money.

Involve the whole family by playing a board game like Monopoly, talking about how money is spent, and maybe even making some financial plans for the future. A small amount each week can have a big impact over time.

About the Author

Robert T. Kiyosaki is an entrepreneur, educator, and the author of the world’s best-selling personal finance book, Rich Dad Poor Dad.

Why We Want You To Be Rich, co-authored with Donald J. Trump, is one of his more than two dozen books.

Buy The Book: Why “A” Students Work for “C” Students

If you want to buy the book Why “A” Students Work for “C” Students and “B” Students Work for the Government, you can get it from the following links:

How To Get Rich By Reading and Writing?

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