Financial Basics
What is a personal financial statement?
A snapshot of your finances.
Money you earn from working is called?
Ordinary income
In Rich Dad’s view, what makes something an asset?
It puts money in your pocket
The income statement shows your _____.
Cash Flow (Income & Expenses)
Who wrote Rich Dad, Poor Dad?
Robert Kiyosaki
Name two main parts of a personal financial statement.
Income statement & balance sheet
What type of income comes from investments?
Portfolio income
What makes something a liability?
It takes money out of your pocket
The balance sheet shows your _____.
Wealth (assets & liabilities)
Rich Dad said financial success isn’t about earning more, but about?
Managing money wisely
Which financial statement tracks money coming in and out?
Income statement
What type of income comes without working?
Passive income
Is a car (not used for business) an asset or liability?
Liability
Which two statements are deeply connected?
Income statement & balance sheet
What is the “foundation of financial literacy” according to Rich Dad?
Personal financial statement
Which financial statement shows what you own and owe?
Balance sheet
Give one example of a monthly expense.
Rent, food, transport, & others.
Is a rental property an asset or liability?
Asset
If an item costs you money each month, it appears as an _____.
Liability
What mistake do people make when they call cars and houses “assets”?
They actually take money out of your pocket
Why is a personal financial statement important?
It helps you manage money and build wealth
Which type of income is taxed the most?
Ordinary income
Finish this quote: “Your house is not an asset unless…”
It puts money in your pocket
Why can’t you tell if something is an asset without checking the income statement?
You need to see if it makes or costs money.
According to Rich Dad, what’s the key to becoming truly rich?
Owning true assets that give income