When we talk about financial literacy, most people will say it’s complicated and involves a lot of math. For most, they don’t even bother to know more about it. In school, we are trained academically in various topics such as science and math but not financial literacy. In the end, here we are working hard to earn money but do not know how to grow and manage money.
In real life, financial literacy is even far more important than science and math subject. This is the best knowledge we can equip ourselves in the real world.
Financial literacy is the ability to understand how money works in the world: how someone manages to earn or make it, how that person manages it, how he/she invests it (turn it into more) and how that person donates it to help others. More specifically, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources.
Robert Kiyosaki developed a game to teach people financially, the Cashflow Boardgame. There are currently 2 board games: the Cashflow 101 for beginners and Cashflow 202 for advanced.
Cashflow 101 is an educational tool in board game format, which aims to teach the players concepts of investing by having their money work for them in a risk free setting (play money) while simultaneously increasing their financial literacy and stressing the imperative nature of accountability.
Here’s Robert Kiyosaki inroducing the Cashflow Boardgame.
There are 2 stages on the game: the Rat Race and the Fast Track. Rat race is defined as the continuous cycle of being an employee: work hard, receive salary, spend money then work hard again. As for the fast track, it simulates the rich people’s activities. The goal of the game is to get out of the rat race and join the fast track.
Playing the game will teach you a lot of things in terms of accounting and financing. Though it is a boardgame, it will teach you a real life situation to test your ability to think and react financially. There are scenarios wherein you will go bankrupt, you will lose your job and even having a baby. And the most important thing it will teach the players is how to escape the rat race by building a passive income and increasing portfolio of investment thru various ways like investmen in stocks, real estate, security deposits, business, bank loans and other investment vehicles.
I have played this game several times and I have taught a lot of friends. After the game, almost all of them have a different point of view with regards to money management. They learned the very important lesson of investment in few hours playing the board game and understand most of the principles that lies within it. As follow up, I teach and encourage them to save and invest their hard earned money for their future. Being OFW is not forever, they have to make the decision to find ways to escape the rat race.
Here’s some of our pictures during the game.
If you are in Singapore, you can join us in our next Cashflow Boardgame. We play at least twice a month especially during Saturday afternoon. Guaranteed you will enjoy the game and you will learn the basic of financials, savings and investments.
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P.S. A year ago, I do not know anything about investment. Then I joined Truly Rich Club by Bo Sanchez. It was the best decision I ever made in my life. Brother Bo is a spiritual preacher and at the same time, financial literacy advocate whose purpose is to help people become rich in order to serve the LORD with the money that they have. He guided me along the way, explaining how I can manage my money and make it work hard for me. Now I’m investing in stocks and mutual funds and have a clear path for my future. Soon I’ll open UITF account as well. All are made possible by his guidance and teachings on every steps to become an investor. Being OFW isn’t forever, this is my EXIT PLAN. It’s amazing how his teachings change my life. I’m inviting you to join the club too, JOIN TRULY RICH CLUB. If you have any question, feel free to leave your comment below. CLICK HERE TO JOIN