Sharon Lechter
Encyclopedia
Sharon L. Lechter is an American accountant
, author
, businesswoman, investor
, international speaker, and philanthropist
. Lechter is best known as the co-author of the international best-selling book Rich Dad, Poor Dad
and the Rich Dad series of books as well as one of the founders of the Rich Dad companies. In addition, Lechter is the co-inventor of the Cashflow for Kids board game and propelled the launch and development of a Web site designed to teach children financial literacy
through fun, educational and interactive games. On October 6, 2009, Lechter's newest book, Think and Grow Rich: Three Feet from Gold hits book stands nationwide.
Rich Dad, Poor Dad
was originally self-published in April 1997 by Tech Press, Inc. and later bought and published by Warner Books. The book first hit the bestseller
lists in March 1998 and has since sold over 26 million copies worldwide, been published in 47 different languages and sold in 97 countries.
In January 2008, Lechter was appointed to the President's Advisory Council on Financial Literacy to serve a two-year term. It is the council's responsibility to keep the American public financially competent and competitive.
and the Rich Dad series of books. In 2008, Lechter was appointed to the President's Advisory Council on Financial Literacy. She is the Founder and CEO of Pay Your Family First and YOUTHpreneur.
Sharon Lechter graduated from Florida State University
with an Accounting degree and Magna Cum Laude honors. Shortly after, she began her career in the ranks of a Big Eight accounting firm. Before she and her husband Michael met Robert Kiyosaki
and formed the Rich Dad companies, Sharon held various management
positions with computer, insurance
and publishing companies while maintaining her credentials as a professional CPA
.
Sharon met her husband Michael Lechter in 1980.
After co-founding the Rich Dad companies, Lechter spent 11 years on the managerial board. In June 2007, Lechter resigned from the managerial board of the Rich Dad companies to further pursue her passion with children's education
and financial literacy
.
Today, she is actively engaged in several business ventures, curriculum
, councils and media opportunities to advance financial literacy across the nation.
lawyer
, President and CEO of Tech Press, author
, investor
and entrepreneur
. Michael has been practicing law as a patent attorney
since the early 1970s. Among his other duties, Michael is an adjunct professor at Arizona State University
, counsel
to the international law firm of Squire, Sanders & Dempsey
, LLP and former Rich Dad Advisor.
He is the author of several books including Protecting Your #1 Asset, Creating Fortunes from Your Ideas, An Intellectual Property Handbook, OPM: How to Attract Other People's Money for Your Investments - The Ultimate Leverage, editor of Successful Patents and Patenting for Engineers and Scientists and contributing author to the Encyclopedia of Electrical and Electronics Engineering and Licensing Best Practices: The LESI Guide To Strategic Issues and Contemporary Realities.
Michael maintains a column at Inc.com where he gives practical advice on a variety of different topics from protecting your assets to intellectual property.
. Sharon and Michael's youngest son, William, joined the U.S. Marines in the summer of 2007. Phillip Lechter and his business partner Troy own Community First Financial, a mortgage
brokering company in Scottsdale
, Ariz. In addition to his mortgage company, Phillip is also a real estate investor
and educator with an investment portfolio that includes 11 residential rental units and a retail business. In the fall of 2000, Phillip began working as an “apprentice” to his mom which later developed into his position as the Chief Communications Officer
for the Rich Dad Company. Recently Phillip Lechter has become an Instructor at Nouveau Riche University
teaching a class on Negotiations for Real Estate
.
The Lechters own a dude ranch
in Young, Ariz. that they are developing into a high-end hunting lodge and corporate group retreat. Cherry Creek Lodge sits amidst the pristine hills and trees of the Tonto National Forest
and offers a variety of activities to guests including hunting
, fishing
, archery
, horse-back riding and ATV
rentals. Cherry Creek Lodge started hosting guests in early 2008.
service called TAPS - Tips, Affirmations, and Positive Sayings. Subscribers receive two weekly text messages to their mobile phones with positive or informative sayings, and parents receive one weekly email on how to talk to their children about money.
under the Pay Your Family First company. The game is designed to teach teenage children financial skills by placing them in real life money and life decisions such as buying a car, giving to charity, using credit cards, buying or starting a business and more. Players have 15 game-time hours per game week of "BIZtime" in which they must decide what new activities or part-time work they will engage in. Players advance through the game with "Thrive Score." Thrive Score increases by making financially good decisions and decreases with bad ones. Players receive game sheets with income, expenditures, assets and liabilities to total their progress.
and coordinated or edited another 10 with the Rich Dad companies. She is one of three founding partners of the series of companies that fall under the Rich Dad brand
with Robert Kiyosaki
and Kim Kiyosaki. Robert Kiyosaki
once said of Sharon Lechter that,
At the Rich Dad companies Sharon claimed credit for developing several board games, audio cassettes, seminars, CDs and interactive Web sites. She claims to be the co-inventor of the Cashflow for Kids board game and spearheaded the launch of Rich Dad's interactive Web site for kids. However, the companies' most well-known work is their very first book and the #1 New York Times bestseller Rich Dad, Poor Dad
.
Originally self-published by Tech Press, Inc. before being picked up by Warner Books and becoming a bestseller
, the story line follows anecdotal advice and lessons Robert Kiyosaki
learned from his "two fathers" growing up in Hawaii
. Robert's "rich dad" (his best friend's father) and his "poor dad" (his biological father) offer very different advice on how to live his life and earn a living. The anecdotal comparison of his "rich dad" and "poor dad" provide the basis for the book and later brand. His "poor dad" was the superintendent
of the Hawaii State Department of Education and a well-educated man. However, Kiyosaki demonstrates that because he followed the traditional path of "get a good education to get a good job" he was constantly in debt
later in life and had very little real net worth
. In opposition to this is his "rich dad" who never even finished the 8th grade but became "the richest man in Hawaii" by investing his smaller income
in a few good money producing investments. Rich Dad, Poor Dad
is designed to challenge the way in which most people view money and how to make money work for you, instead of working for your money.
The rest of the Rich Dad books enforce these basic principles and ideas but elaborate on them within specific groups, time frames or opportunities.
/Hachette Publishing - Sharon Lechter as co-author with Robert Kiyosaki
Sharon Lechter as author with co-author Garrett Sutton
Little Brown/Hachette Publishing - Sharon Lechter as co-author with Robert Kiyosaki
VideoPlus - Sharon Lechter as co-author with Robert Kiyosaki
Rich Publishing - Donald Trump
and Robert Kiyosaki
with Sharon Lechter and Meredith McIver as co-authors
/Hachette
for children. Cashflow for Kids, designed for children ages 5 to 9, aims to teach the very basic principles and concepts of investing and making money
.
The game is broken into two stages, the "rat race" and "the fast track." Kids must first raise their income
above their expenses before they can escape the first stage of the game. In the second stage they must achieve the "dream" goal of $50,000 in monthly cash flow
with the first to reach this goal declared the winner.
Kids learn hands on and by themselves how to invest and the difference between an asset
and a liability. In place of "score cards" there are financial statements. Kids can see first hand what their money is going into.
s and lessons found in the board game are applied at this free online Web site. Animated characters
help kids "escape the rat race" and learn how to maximize profit
in several different and repeatable exercises.
The Web site caters to children of all ages with four different areas for four different age groups; K-2, 3-5, 6-8 and 9-12. In addition there is a section and breakdown for teachers and parents as well as news of personal kid success stories.
co-author Robert Kiyosaki
in Clark County, NV (Civil Case # 07-A-549886-C). On September 4, 2008 the Lechters and Kiyosakis reached a settlement in their law suit.
s alone, rather than running the "rat race" and living paycheck to paycheck. To do this they advocate investments such as real estate
and small businesses. They clearly define the difference between an asset
and a liability. Kiyosaki defines "assets" as things that generate money, such as rental properties or businesses and "liabilities" as things that cost money, such as house payments, cars and so on. Financial leverage
is also a key component towards becoming rich. Lechter advocates learning to take existing infrastructure
s and systems and applying them to your project.
Lechter stresses what she calls "financial literacy" as the means to obtaining wealth. She says that life skills are often best learned through experience and that there are important lessons not taught in school. According to Lechter, in order to obtain financial freedom, one must be either be a business owner or an investor, generating passive income.
Lechter and Kiyosaki speak often of what they call "The Cashflow Quadrant," a conceptual tool that aims to describe how all the money in the world is earned. Depicted in a diagram, this concept entails four groupings, split with two lines (one vertical and one horizontal). In each of the four groups there is a letter representing a way in which an individual may earn income. The letters are as follows.
For those on the left side of the divide ("E" and "S"), Lechter and Kiyosaki say that they may never obtain true wealth. Conversely, those on the right side of the divide ("B" and "I") are supposedly following the only road to true wealth.
, especially for woman in business, children and families. During her time at the Rich Dad companies she worked to advance and develop a variety of media for children and teens including; Rich Dad, Poor Dad for Teens, Rich Kid Smart Kid Web site and the board game Cashflow for Kids.
In January, 2008, Sharon Lechter was appointed to the President’s Council on Financial Literacy in a ceremony held in the Roosevelt room at the White House
in Washington, D.C.
Lechter and the council, composed of 19 members from the business
, faith
and non-profit communities work to shape the course for a financially literate nation. The council is charged to gather information about financial literacy and its condition
in the U.S., recommend improvements to national policies to the President
and the Treasury
secretary and "assist the American people in understanding and addressing financial matters."
Members of the council include;
, Lechter also gives back to world communities as both a volunteer and benefactor. Her dedication to her principles, ideas and convictions has landed her numerous awards and placed her on several committees.
Certified Public Accountant
Certified Public Accountant is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA...
, author
Author
An author is broadly defined as "the person who originates or gives existence to anything" and that authorship determines responsibility for what is created. Narrowly defined, an author is the originator of any written work.-Legal significance:...
, businesswoman, investor
Investor
An investor is a party that makes an investment into one or more categories of assets --- equity, debt securities, real estate, currency, commodity, derivatives such as put and call options, etc...
, international speaker, and philanthropist
Philanthropist
A philanthropist is someone who engages in philanthropy; that is, someone who donates his or her time, money, and/or reputation to charitable causes...
. Lechter is best known as the co-author of the international best-selling book Rich Dad, Poor Dad
Rich Dad, Poor Dad
Rich Dad Poor Dad is a book by Robert Kiyosaki and Sharon Lechter. It advocates financial independence through investing, real estate, owning businesses, and the use of finance protection tactics....
and the Rich Dad series of books as well as one of the founders of the Rich Dad companies. In addition, Lechter is the co-inventor of the Cashflow for Kids board game and propelled the launch and development of a Web site designed to teach children financial literacy
Financial literacy
Financial literacy is the ability to understand finance. More specifically, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions through their understanding of finances...
through fun, educational and interactive games. On October 6, 2009, Lechter's newest book, Think and Grow Rich: Three Feet from Gold hits book stands nationwide.
Rich Dad, Poor Dad
Rich Dad, Poor Dad
Rich Dad Poor Dad is a book by Robert Kiyosaki and Sharon Lechter. It advocates financial independence through investing, real estate, owning businesses, and the use of finance protection tactics....
was originally self-published in April 1997 by Tech Press, Inc. and later bought and published by Warner Books. The book first hit the bestseller
Bestseller
A bestseller is a book that is identified as extremely popular by its inclusion on lists of currently top selling titles that are based on publishing industry and book trade figures and published by newspapers, magazines, or bookstore chains. Some lists are broken down into classifications and...
lists in March 1998 and has since sold over 26 million copies worldwide, been published in 47 different languages and sold in 97 countries.
In January 2008, Lechter was appointed to the President's Advisory Council on Financial Literacy to serve a two-year term. It is the council's responsibility to keep the American public financially competent and competitive.
Personal life
Sharon L. Lechter is the co-author of the #1 NY Times best-sellers Rich Dad, Poor DadRich Dad, Poor Dad
Rich Dad Poor Dad is a book by Robert Kiyosaki and Sharon Lechter. It advocates financial independence through investing, real estate, owning businesses, and the use of finance protection tactics....
and the Rich Dad series of books. In 2008, Lechter was appointed to the President's Advisory Council on Financial Literacy. She is the Founder and CEO of Pay Your Family First and YOUTHpreneur.
Sharon Lechter graduated from Florida State University
Florida State University
The Florida State University is a space-grant and sea-grant public university located in Tallahassee, Florida, United States. It is a comprehensive doctoral research university with medical programs and significant research activity as determined by the Carnegie Foundation...
with an Accounting degree and Magna Cum Laude honors. Shortly after, she began her career in the ranks of a Big Eight accounting firm. Before she and her husband Michael met Robert Kiyosaki
Robert Kiyosaki
Robert Toru Kiyosaki, born April 8, 1947) is an American investor, businessman, self-help author and motivational speaker. Kiyosaki is best known for his Rich Dad Poor Dad series of motivational books and other material published under the Rich Dad brand. He has written 15 books which have combined...
and formed the Rich Dad companies, Sharon held various management
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...
positions with computer, insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
and publishing companies while maintaining her credentials as a professional CPA
Certified Public Accountant
Certified Public Accountant is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA...
.
Sharon met her husband Michael Lechter in 1980.
After co-founding the Rich Dad companies, Lechter spent 11 years on the managerial board. In June 2007, Lechter resigned from the managerial board of the Rich Dad companies to further pursue her passion with children's education
Education
Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...
and financial literacy
Financial literacy
Financial literacy is the ability to understand finance. More specifically, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions through their understanding of finances...
.
"Our current educational system has not been able to keep pace with the global and technological changes in the world today," Lechter said. "Money is a life skill. We must teach our young people the skills - both scholastic and financial - that they need to not only survive, but to thrive in the world."
Today, she is actively engaged in several business ventures, curriculum
Curriculum
See also Syllabus.In formal education, a curriculum is the set of courses, and their content, offered at a school or university. As an idea, curriculum stems from the Latin word for race course, referring to the course of deeds and experiences through which children grow to become mature adults...
, councils and media opportunities to advance financial literacy across the nation.
Michael Lechter
Michael A. Lechter is an intellectual propertyIntellectual property
Intellectual property is a term referring to a number of distinct types of creations of the mind for which a set of exclusive rights are recognized—and the corresponding fields of law...
lawyer
Lawyer
A lawyer, according to Black's Law Dictionary, is "a person learned in the law; as an attorney, counsel or solicitor; a person who is practicing law." Law is the system of rules of conduct established by the sovereign government of a society to correct wrongs, maintain the stability of political...
, President and CEO of Tech Press, author
Author
An author is broadly defined as "the person who originates or gives existence to anything" and that authorship determines responsibility for what is created. Narrowly defined, an author is the originator of any written work.-Legal significance:...
, investor
Investor
An investor is a party that makes an investment into one or more categories of assets --- equity, debt securities, real estate, currency, commodity, derivatives such as put and call options, etc...
and entrepreneur
Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...
. Michael has been practicing law as a patent attorney
Patent attorney
A patent attorney is an attorney who has the specialized qualifications necessary for representing clients in obtaining patents and acting in all matters and procedures relating to patent law and practice, such as filing an opposition...
since the early 1970s. Among his other duties, Michael is an adjunct professor at Arizona State University
Arizona State University
Arizona State University is a public research university located in the Phoenix Metropolitan Area of the State of Arizona...
, counsel
Counsel
A counsel or a counselor gives advice, more particularly in legal matters.-U.K. and Ireland:The legal system in England uses the term counsel as an approximate synonym for a barrister-at-law, and may apply it to mean either a single person who pleads a cause, or collectively, the body of barristers...
to the international law firm of Squire, Sanders & Dempsey
Squire, Sanders & Dempsey
Squire, Sanders & Dempsey is an international legal practice with 36 offices in 17 countries. Squire, Sanders & Dempsey International Association does not itself provide, directly or indirectly, any legal or other client services...
, LLP and former Rich Dad Advisor.
He is the author of several books including Protecting Your #1 Asset, Creating Fortunes from Your Ideas, An Intellectual Property Handbook, OPM: How to Attract Other People's Money for Your Investments - The Ultimate Leverage, editor of Successful Patents and Patenting for Engineers and Scientists and contributing author to the Encyclopedia of Electrical and Electronics Engineering and Licensing Best Practices: The LESI Guide To Strategic Issues and Contemporary Realities.
Michael maintains a column at Inc.com where he gives practical advice on a variety of different topics from protecting your assets to intellectual property.
Children
Sharon and Michael have three children together, Phillip, Shelly and William, and reside in ArizonaArizona
Arizona ; is a state located in the southwestern region of the United States. It is also part of the western United States and the mountain west. The capital and largest city is Phoenix...
. Sharon and Michael's youngest son, William, joined the U.S. Marines in the summer of 2007. Phillip Lechter and his business partner Troy own Community First Financial, a mortgage
Mortgage loan
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan...
brokering company in Scottsdale
Scottsdale, Arizona
Scottsdale is a city in the eastern part of Maricopa County, Arizona, United States, adjacent to Phoenix. According to the U.S. Census Bureau, as of 2010 the population of the city was 217,385...
, Ariz. In addition to his mortgage company, Phillip is also a real estate investor
Real estate investor
A real estate investor or a real estate entrepreneur to a lesser extent is someone who actively or passively invests in real estate. An active investor may buy a property, make repairs and/or improvements to the property, and sell it later for a profit. A passive investor might hire a firm to...
and educator with an investment portfolio that includes 11 residential rental units and a retail business. In the fall of 2000, Phillip began working as an “apprentice” to his mom which later developed into his position as the Chief Communications Officer
Chief communications officer
The chief communications officer is a job title for the head of communications, public relations, and/or public affairs within an organization...
for the Rich Dad Company. Recently Phillip Lechter has become an Instructor at Nouveau Riche University
Nouveau Riche University
Nouveau Riche is a non-accredited vocational school specializing in real estate investing. Class topics range from introductory real estate investing to advanced techniques such as creative real estate investing techniques including wholesaling, multi-units, and short sales; examples of course...
teaching a class on Negotiations for Real Estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
.
Cherry Creek Lodge
The Lechters own a dude ranch
Dude ranch
The guest ranch, also known as a dude ranch, is a type of ranch oriented towards visitors or tourism. It is considered a form of agritourism.-History:...
in Young, Ariz. that they are developing into a high-end hunting lodge and corporate group retreat. Cherry Creek Lodge sits amidst the pristine hills and trees of the Tonto National Forest
Tonto National Forest
The Tonto National Forest, encompassing 2,873,200 acres , is the largest of the six national forests in Arizona and is the fifth largest national forest in the United States. The Tonto National Forest has diverse scenery, with elevations ranging from 1,400 feet in the Sonoran Desert to 7,400 feet...
and offers a variety of activities to guests including hunting
Hunting
Hunting is the practice of pursuing any living thing, usually wildlife, for food, recreation, or trade. In present-day use, the term refers to lawful hunting, as distinguished from poaching, which is the killing, trapping or capture of the hunted species contrary to applicable law...
, fishing
Fishing
Fishing is the activity of trying to catch wild fish. Fish are normally caught in the wild. Techniques for catching fish include hand gathering, spearing, netting, angling and trapping....
, archery
Archery
Archery is the art, practice, or skill of propelling arrows with the use of a bow, from Latin arcus. Archery has historically been used for hunting and combat; in modern times, however, its main use is that of a recreational activity...
, horse-back riding and ATV
All-terrain vehicle
An all-terrain vehicle , also known as a quad, quad bike, three wheeler, or four wheeler, is defined by the American National Standards Institute as a vehicle that travels on low pressure tires, with a seat that is straddled by the operator, along with handlebars for steering control...
rentals. Cherry Creek Lodge started hosting guests in early 2008.
Pay Your Family First
In 2009 Lechter officially launched Pay Your Family First, "a company dedicated to empowering children and families to build prosperous futures through financial literacy education." The company is the umbrella organization for a number of Lechter's newest brands and products including YOUTHpreneur and ThriveTime for Teens.YOUTHpreneur
YOUTHpreneur launched in 2008 to "ignite the entrepreneurs of tomorrow, today!" YOUTHpreneur is a brand of products and services under the Pay Your Family First company. The brand features a business kit designed to teach teenagers the basics of money management and how to operate an independent business. "My Biz Kit" includes both parent and teenage guides, a resource guide, a tote bag, calculator, stationary, business cards and more. YOUTHpreneur also sells a branded gumball machine designed to be used as a "starter business" for those not looking to go out and create their own. In addition, the brand offers a SMS text messagingShort message service
Short Message Service is a text messaging service component of phone, web, or mobile communication systems, using standardized communications protocols that allow the exchange of short text messages between fixed line or mobile phone devices...
service called TAPS - Tips, Affirmations, and Positive Sayings. Subscribers receive two weekly text messages to their mobile phones with positive or informative sayings, and parents receive one weekly email on how to talk to their children about money.
ThriveTime for Teens
ThriveTime for Teens is a board gameBoard game
A board game is a game which involves counters or pieces being moved on a pre-marked surface or "board", according to a set of rules. Games may be based on pure strategy, chance or a mixture of the two, and usually have a goal which a player aims to achieve...
under the Pay Your Family First company. The game is designed to teach teenage children financial skills by placing them in real life money and life decisions such as buying a car, giving to charity, using credit cards, buying or starting a business and more. Players have 15 game-time hours per game week of "BIZtime" in which they must decide what new activities or part-time work they will engage in. Players advance through the game with "Thrive Score." Thrive Score increases by making financially good decisions and decreases with bad ones. Players receive game sheets with income, expenditures, assets and liabilities to total their progress.
Three Feet from Gold
On October 6, 2009, Lechter's newest title, Think and Grow Rich: Three Feet from Gold hits book stands nationwide. The narrative follows the story of a young writer who interviews many of today's business leaders and other influential figures about the importance of persistence in obtaining your goals. The book advocates finding your own Success Formula, choosing good counsel and above all: never giving up.The Rich Dad Companies
Sharon Lechter has co-authored over a dozen different books under the Rich Dad brand with Robert KiyosakiRobert Kiyosaki
Robert Toru Kiyosaki, born April 8, 1947) is an American investor, businessman, self-help author and motivational speaker. Kiyosaki is best known for his Rich Dad Poor Dad series of motivational books and other material published under the Rich Dad brand. He has written 15 books which have combined...
and coordinated or edited another 10 with the Rich Dad companies. She is one of three founding partners of the series of companies that fall under the Rich Dad brand
Brand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
with Robert Kiyosaki
Robert Kiyosaki
Robert Toru Kiyosaki, born April 8, 1947) is an American investor, businessman, self-help author and motivational speaker. Kiyosaki is best known for his Rich Dad Poor Dad series of motivational books and other material published under the Rich Dad brand. He has written 15 books which have combined...
and Kim Kiyosaki. Robert Kiyosaki
Robert Kiyosaki
Robert Toru Kiyosaki, born April 8, 1947) is an American investor, businessman, self-help author and motivational speaker. Kiyosaki is best known for his Rich Dad Poor Dad series of motivational books and other material published under the Rich Dad brand. He has written 15 books which have combined...
once said of Sharon Lechter that,
“Sharon is one of the few natural entrepreneurs I have ever met. In The Rich Dad Company, I am the horn and Sharon is the engine."
At the Rich Dad companies Sharon claimed credit for developing several board games, audio cassettes, seminars, CDs and interactive Web sites. She claims to be the co-inventor of the Cashflow for Kids board game and spearheaded the launch of Rich Dad's interactive Web site for kids. However, the companies' most well-known work is their very first book and the #1 New York Times bestseller Rich Dad, Poor Dad
Rich Dad, Poor Dad
Rich Dad Poor Dad is a book by Robert Kiyosaki and Sharon Lechter. It advocates financial independence through investing, real estate, owning businesses, and the use of finance protection tactics....
.
Rich Dad, Poor Dad
Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money—That the Poor and Middle Class Do Not! (2000)Originally self-published by Tech Press, Inc. before being picked up by Warner Books and becoming a bestseller
Bestseller
A bestseller is a book that is identified as extremely popular by its inclusion on lists of currently top selling titles that are based on publishing industry and book trade figures and published by newspapers, magazines, or bookstore chains. Some lists are broken down into classifications and...
, the story line follows anecdotal advice and lessons Robert Kiyosaki
Robert Kiyosaki
Robert Toru Kiyosaki, born April 8, 1947) is an American investor, businessman, self-help author and motivational speaker. Kiyosaki is best known for his Rich Dad Poor Dad series of motivational books and other material published under the Rich Dad brand. He has written 15 books which have combined...
learned from his "two fathers" growing up in Hawaii
Hawaii
Hawaii is the newest of the 50 U.S. states , and is the only U.S. state made up entirely of islands. It is the northernmost island group in Polynesia, occupying most of an archipelago in the central Pacific Ocean, southwest of the continental United States, southeast of Japan, and northeast of...
. Robert's "rich dad" (his best friend's father) and his "poor dad" (his biological father) offer very different advice on how to live his life and earn a living. The anecdotal comparison of his "rich dad" and "poor dad" provide the basis for the book and later brand. His "poor dad" was the superintendent
Superintendent (education)
In education in the United States, a superintendent is an individual who has executive oversight and administration rights, usually within an educational entity or organization....
of the Hawaii State Department of Education and a well-educated man. However, Kiyosaki demonstrates that because he followed the traditional path of "get a good education to get a good job" he was constantly in debt
Debt
A debt is an obligation owed by one party to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.A debt is created when a...
later in life and had very little real net worth
Net worth
In business, net worth is the total assets minus total outside liabilities of an individual or a company. For a company, this is called shareholders' preference and may be referred to as book value. Net worth is stated as at a particular year in time...
. In opposition to this is his "rich dad" who never even finished the 8th grade but became "the richest man in Hawaii" by investing his smaller income
Income
Income is the consumption and savings opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms. However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings...
in a few good money producing investments. Rich Dad, Poor Dad
Rich Dad, Poor Dad
Rich Dad Poor Dad is a book by Robert Kiyosaki and Sharon Lechter. It advocates financial independence through investing, real estate, owning businesses, and the use of finance protection tactics....
is designed to challenge the way in which most people view money and how to make money work for you, instead of working for your money.
The rest of the Rich Dad books enforce these basic principles and ideas but elaborate on them within specific groups, time frames or opportunities.
Rich Dad Series
Warner Bros.Warner Bros.
Warner Bros. Entertainment, Inc., also known as Warner Bros. Pictures or simply Warner Bros. , is an American producer of film and television entertainment.One of the major film studios, it is a subsidiary of Time Warner, with its headquarters in Burbank,...
/Hachette Publishing - Sharon Lechter as co-author with Robert Kiyosaki
Robert Kiyosaki
Robert Toru Kiyosaki, born April 8, 1947) is an American investor, businessman, self-help author and motivational speaker. Kiyosaki is best known for his Rich Dad Poor Dad series of motivational books and other material published under the Rich Dad brand. He has written 15 books which have combined...
- Rich Dad, Poor Dad (1997)
- Rich Dad’s CASHFLOW Quadrant (1998)
- Rich Dad’s Guide to Investing (2000)
- Rich Dad’s Rich Kid Smart Kid (2001)
- Rich Dad’s Retire Young Retire Rich (2001)
- Rich Dad’s Prophecy (2002)
- Rich Dad’s Success Stories (2003)
- Rich Dad’s Guide to Becoming Rich Without Cutting Up Your Credit Cards (2003)
- Rich Dad’s Who Took My Money (2004)
- Rich Dad’s Before You Quit Your Job (2005)
Sharon Lechter as author with co-author Garrett Sutton
- Rich Dad’s Real Estate Advantages (2006)
Little Brown/Hachette Publishing - Sharon Lechter as co-author with Robert Kiyosaki
Robert Kiyosaki
Robert Toru Kiyosaki, born April 8, 1947) is an American investor, businessman, self-help author and motivational speaker. Kiyosaki is best known for his Rich Dad Poor Dad series of motivational books and other material published under the Rich Dad brand. He has written 15 books which have combined...
- Rich Dad Poor Dad for Teens (2004)
- Escape the Rat Race (2005)
VideoPlus - Sharon Lechter as co-author with Robert Kiyosaki
Robert Kiyosaki
Robert Toru Kiyosaki, born April 8, 1947) is an American investor, businessman, self-help author and motivational speaker. Kiyosaki is best known for his Rich Dad Poor Dad series of motivational books and other material published under the Rich Dad brand. He has written 15 books which have combined...
- The Business School For People Who Like Helping People (2001)
Rich Publishing - Donald Trump
Donald Trump
Donald John Trump, Sr. is an American business magnate, television personality and author. He is the chairman and president of The Trump Organization and the founder of Trump Entertainment Resorts. Trump's extravagant lifestyle, outspoken manner and role on the NBC reality show The Apprentice have...
and Robert Kiyosaki
Robert Kiyosaki
Robert Toru Kiyosaki, born April 8, 1947) is an American investor, businessman, self-help author and motivational speaker. Kiyosaki is best known for his Rich Dad Poor Dad series of motivational books and other material published under the Rich Dad brand. He has written 15 books which have combined...
with Sharon Lechter and Meredith McIver as co-authors
- Why We Want You to be Rich (2006)
- Rich Woman (2006) - Kim Kiyosaki
Rich Dad Advisor Series
Warner Bros.Warner Bros.
Warner Bros. Entertainment, Inc., also known as Warner Bros. Pictures or simply Warner Bros. , is an American producer of film and television entertainment.One of the major film studios, it is a subsidiary of Time Warner, with its headquarters in Burbank,...
/Hachette
- Sales Dogs (2001)
- Own Your Own Corporation (2001)
- Protecting Your #1 Asset (2001)
- How to Buy and Sell a Business (2003)
- OPM – Other People’s Money (2004)
- The ABC’s of Real Estate Investing (2004)
- The ABC’s of Getting Out of Debt (2004)
- The ABC’s of Writing Winning Business Plans (2005)
- The ABC’s of Building a Business Team That Wins (2006)
Cashflow for Kids
Lechter takes credit for adapting Rich Dad's Cashflow 101 board gameBoard game
A board game is a game which involves counters or pieces being moved on a pre-marked surface or "board", according to a set of rules. Games may be based on pure strategy, chance or a mixture of the two, and usually have a goal which a player aims to achieve...
for children. Cashflow for Kids, designed for children ages 5 to 9, aims to teach the very basic principles and concepts of investing and making money
Money
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...
.
The game is broken into two stages, the "rat race" and "the fast track." Kids must first raise their income
Income
Income is the consumption and savings opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms. However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings...
above their expenses before they can escape the first stage of the game. In the second stage they must achieve the "dream" goal of $50,000 in monthly cash flow
Cash flow
Cash flow is the movement of money into or out of a business, project, or financial product. It is usually measured during a specified, finite period of time. Measurement of cash flow can be used for calculating other parameters that give information on a company's value and situation.Cash flow...
with the first to reach this goal declared the winner.
Kids learn hands on and by themselves how to invest and the difference between an asset
Asset
In financial accounting, assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset...
and a liability. In place of "score cards" there are financial statements. Kids can see first hand what their money is going into.
Rich Kid, Smart Kid
Rich Kid Smart Kid is the online, animated version of Cashflow for Kids. Lechter was a driving force behind developing the concepts for the site. The same principlePrinciple
A principle is a law or rule that has to be, or usually is to be followed, or can be desirably followed, or is an inevitable consequence of something, such as the laws observed in nature or the way that a system is constructed...
s and lessons found in the board game are applied at this free online Web site. Animated characters
Character (arts)
A character is the representation of a person in a narrative work of art . Derived from the ancient Greek word kharaktêr , the earliest use in English, in this sense, dates from the Restoration, although it became widely used after its appearance in Tom Jones in 1749. From this, the sense of...
help kids "escape the rat race" and learn how to maximize profit
Profit (economics)
In economics, the term profit has two related but distinct meanings. Normal profit represents the total opportunity costs of a venture to an entrepreneur or investor, whilst economic profit In economics, the term profit has two related but distinct meanings. Normal profit represents the total...
in several different and repeatable exercises.
The Web site caters to children of all ages with four different areas for four different age groups; K-2, 3-5, 6-8 and 9-12. In addition there is a section and breakdown for teachers and parents as well as news of personal kid success stories.
Lawsuit
On October 12, 2007, Sharon Lechter filed suit against Rich Dad, Poor DadRich Dad, Poor Dad
Rich Dad Poor Dad is a book by Robert Kiyosaki and Sharon Lechter. It advocates financial independence through investing, real estate, owning businesses, and the use of finance protection tactics....
co-author Robert Kiyosaki
Robert Kiyosaki
Robert Toru Kiyosaki, born April 8, 1947) is an American investor, businessman, self-help author and motivational speaker. Kiyosaki is best known for his Rich Dad Poor Dad series of motivational books and other material published under the Rich Dad brand. He has written 15 books which have combined...
in Clark County, NV (Civil Case # 07-A-549886-C). On September 4, 2008 the Lechters and Kiyosakis reached a settlement in their law suit.
The Rich Dad Philosophy
The main goal of Kiyosaki's anecdotal lessons in the Rich Dad series of books is to create financially literate and aware persons who can support themselves on their investmentInvestment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
s alone, rather than running the "rat race" and living paycheck to paycheck. To do this they advocate investments such as real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
and small businesses. They clearly define the difference between an asset
Asset
In financial accounting, assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset...
and a liability. Kiyosaki defines "assets" as things that generate money, such as rental properties or businesses and "liabilities" as things that cost money, such as house payments, cars and so on. Financial leverage
Leverage (finance)
In finance, leverage is a general term for any technique to multiply gains and losses. Common ways to attain leverage are borrowing money, buying fixed assets and using derivatives. Important examples are:* A public corporation may leverage its equity by borrowing money...
is also a key component towards becoming rich. Lechter advocates learning to take existing infrastructure
Infrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...
s and systems and applying them to your project.
Lechter stresses what she calls "financial literacy" as the means to obtaining wealth. She says that life skills are often best learned through experience and that there are important lessons not taught in school. According to Lechter, in order to obtain financial freedom, one must be either be a business owner or an investor, generating passive income.
Lechter and Kiyosaki speak often of what they call "The Cashflow Quadrant," a conceptual tool that aims to describe how all the money in the world is earned. Depicted in a diagram, this concept entails four groupings, split with two lines (one vertical and one horizontal). In each of the four groups there is a letter representing a way in which an individual may earn income. The letters are as follows.
- E: Employee — Working for someone else
- S: Self-employed or Small business ownerSmall businessA small business is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships...
— Where a person owns his own job and is his own boss. - B: Business ownerBusinessA business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
— Where a person owns a "system" of making money, rather than a job to make money. - I: InvestorInvestorAn investor is a party that makes an investment into one or more categories of assets --- equity, debt securities, real estate, currency, commodity, derivatives such as put and call options, etc...
— Spending money in order to receive a larger payout in return.
For those on the left side of the divide ("E" and "S"), Lechter and Kiyosaki say that they may never obtain true wealth. Conversely, those on the right side of the divide ("B" and "I") are supposedly following the only road to true wealth.
Financial Literacy
Sharon Lechter's true passion is financial literacyFinancial literacy
Financial literacy is the ability to understand finance. More specifically, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions through their understanding of finances...
, especially for woman in business, children and families. During her time at the Rich Dad companies she worked to advance and develop a variety of media for children and teens including; Rich Dad, Poor Dad for Teens, Rich Kid Smart Kid Web site and the board game Cashflow for Kids.
In January, 2008, Sharon Lechter was appointed to the President’s Council on Financial Literacy in a ceremony held in the Roosevelt room at the White House
White House
The White House is the official residence and principal workplace of the president of the United States. Located at 1600 Pennsylvania Avenue NW in Washington, D.C., the house was designed by Irish-born James Hoban, and built between 1792 and 1800 of white-painted Aquia sandstone in the Neoclassical...
in Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
Lechter and the council, composed of 19 members from the business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
, faith
Faith
Faith is confidence or trust in a person or thing, or a belief that is not based on proof. In religion, faith is a belief in a transcendent reality, a religious teacher, a set of teachings or a Supreme Being. Generally speaking, it is offered as a means by which the truth of the proposition,...
and non-profit communities work to shape the course for a financially literate nation. The council is charged to gather information about financial literacy and its condition
Condition
-Logic:* Logical conditional* Necessary and sufficient condition, condition of another means that the former statement is true if and only if the latter is true-Computer programming:* Conditions, a generalization of exceptions in exception-handling...
in the U.S., recommend improvements to national policies to the President
President
A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
and the Treasury
Treasury
A treasury is either*A government department related to finance and taxation.*A place where currency or precious items is/are kept....
secretary and "assist the American people in understanding and addressing financial matters."
“We want people to own assets; we want people to be able to manage their assets,” said President Bush in his remarks. “We want people to understand basic financial concepts, and how credit cards work and how credit scores affect you, how you can benefit from a savings account or a bank account. That's what we want. And this group of citizens has taken the lead, and I thank them.”
Members of the council include;
- Charles R. SchwabCharles R. SchwabCharles R. "Chuck" Schwab is the founder and chairman of the Charles Schwab Corporation.-Early life:Schwab was born in Sacramento, California. Despite having the same name, he is not related to Charles M. Schwab, the American steel magnate of the first half of the Twentieth Century...
, of California, and upon appointment, Designate Chair; - John Bryant, of California, and upon appointment, Designate Vice Chair;
- Theodore Beck, of Colorado;
- Theodore R. Daniels, of Maryland;
- Cutler Dawson, of Virginia;
- Robert F. Duvall, of New York;
- Tahira Hira, of Iowa;
- Jack E. Kosakowski, of Colorado;
- Sharon L. Lechter, of Arizona;
- Robert V. Lee III, of Florida;
- Laura Levine, of the District of Columbia;
Community Awards & Recognitions
A committed philanthropistPhilanthropist
A philanthropist is someone who engages in philanthropy; that is, someone who donates his or her time, money, and/or reputation to charitable causes...
, Lechter also gives back to world communities as both a volunteer and benefactor. Her dedication to her principles, ideas and convictions has landed her numerous awards and placed her on several committees.
Committees
- PresidentPresidentA president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
George W. BushGeorge W. BushGeorge Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
's Council on FinancialFINANCIALFINANCIAL is the weekly English-language newspaper with offices in Tbilisi, Georgia and Kiev, Ukraine. Published by Intelligence Group LLC, FINANCIAL is focused on opinion leaders and top business decision-makers; It's about world’s largest companies, investing, careers, and small business. It is...
LiteracyLiteracyLiteracy has traditionally been described as the ability to read for knowledge, write coherently and think critically about printed material.Literacy represents the lifelong, intellectual process of gaining meaning from print... - The Dean’s Council 100 of the W.P. Carey School of Business at Arizona State UniversityArizona State UniversityArizona State University is a public research university located in the Phoenix Metropolitan Area of the State of Arizona...
- Advisory board of the Spirit of Enterprise at the W.P. Carey School of Business
- Active member of Women’s Presidents Organization
- National board of Childhelp, a national non-profit organization founded to prevent and treat child abuse.
Recognitions
- Spirit of the Children Award (2002) - Sharon and her husband Michael received this award for their support of Childhelp and their own efforts to curtail child abuse.
- Arizona Power Couple (2004) - Sharon and Michael were recognized as an Arizona Power Couple for their influence in and around the state.
- Woman of Distinction (2005) - The Crohn's and Colitis Foundation of America recognized Sharon with this award.
External links
- Pay Your Family First Official Web site
- Sharon Lechter's Official Web site
- Michael Lechter's Official Web site
- Phillip Lechter's Official Web site
- YOUTHpreneur Official Web site
- Community First Financial
- Rich Dad, Poor Dad's Official Web site
- Kurt Schemers of Traders Nation Interview of Sharon Lechter
- Kurt Schemers of Traders Nation Interview of Michael A. Lechter
- Sharon Lechter radio interview WSLR with Doug Miles