Entrepreneurship needs to be encouraged in schools: Robert Kiyosaki - CNBC Africa

Entrepreneurship needs to be encouraged in schools: Robert Kiyosaki

Special Report

by admin 0

“Schools are pumping out bureaucrats and people who run companies but there are no entrepreneurs coming out and that’s the biggest challenge today,” Kiyosaki, author of the famous personal finance book, Rich Dad Poor Dad, told CNBC Africa over the weekend.

He posed the question on how teachers could educate children on entrepreneurship when the teachers were such risk-adverse people.

“The problem is that our schools are not preparing people to make money,” he stated.

It is, therfore, critical, in Kiyosaki's opinion, that the school’s systems as well as educator’s mind sets are changed.

“My poor dad was risk adverse, he always told me to not make mistakes and to climb the corporate ladder but you’re not going to get rich that way,” Kiyosaki added.

He believes that the greatest investment at this point is in financial education.

“Let me set it this way, a piece of real estate is either a liability or asset and that’s where education begins, knowing an asset from a liability,” he said.

Another problem, Kiyosaki added, is that the United States government, through quantitative easing programs, has printed over 5.6 trillion US dollars and pumped it into the economy.

“Why would you be saving your money when they are printing it? It is insanity!” he exclaimed.

Kiyosaki, therefore, projects that in the year 2016, the world will experience its biggest economic crash.

 “The US Dollar is becoming the new gold for the global economy, and the US government has the power to print as much money as they wish. This is criminal behaviour,” he stated.

Kiyosaki also believes that while official data being fed to the public by the US government, specifically, informs people that economic recovery is on the rise, the data is inaccurate.

“The data stating that we are going to recover from the economic crash that the US government has fed us are lies. The real situation since 2007 has gotten worse, not better,” he exclaimed.

As a result, Kiyosaki proposes that in terms of an individual’s investment portfolio, one should not focus on long term investment, even though most financial planners would advise it, and to also consider a strategy that will allow you to short your portfolio fast when the market falls.

“You must think that in two or three years if the market goes down, how will you be making money off your portfolio?”