Rich Dad, Poor Dad Chapter 3: Why Teach Financial Literacy | Powerful Creator Mastermind w/ Amber Breanna

Amber Breanna
Jun 9
6 min read

Updated: 6 days ago

What does it really mean to be financially free?

That’s the question we sat with in this week’s Powerful Creator Mastermind as we explored Lesson 2: of Rich Dad Poor Dad "Why I Teach Financial Literacy.”

This wasn’t just about reading a chapter. It was about waking up to a new level of awareness.

We didn’t just talk about money; we talked about patterns, fears, habits, and choices.

Because financial freedom doesn’t start with more income, it starts with more intention. It starts with understanding how money moves, how we relate to it, and how we’ve been taught to fear it or avoid it altogether.

Most of us weren’t raised learning about assets and liabilities.

We were told to work hard, not ask questions, and just hope it all worked out.

But now, we’re asking.

We’re learning.

We’re choosing to stay in the room long enough to get the answers. 💸

Because money is more than just numbers, it’s a mirror. It shows us how safe we feel, how much we trust ourselves, and what we believe we’re worthy of.

And this week, we chose to take our power back, one financial decision at a time. 💰❤️

🎥 Watch the Replay

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💡 3 Powerful Takeaways from the Conversation

1️⃣ Financial literacy is the foundation.

It means understanding the basics of how money works: how to earn it, manage it, save it, and protect it.

This is where every Powerful Creator begins. Because when you understand money, you stop fearing it and start directing it.

But financial aptitude takes it a step further. As defined in this chapter, it’s your ability to apply what you’ve learned: to track where your money goes, to build wealth through cash flow, investing, and assets, not just income.

It’s a core concept we studied this week, and it’s something every woman in this community should not only know but embody. Because this is how we shift from surviving with money to leading with it.

2️⃣ Know the Difference: Assets vs. Liabilities—and commit to buying assets.

An asset puts money into your pocket.

A liability takes money out.

This simple definition is one of the most important things we studied in this chapter and it’s at the core of financial literacy.

Many people think they’re building wealth by buying homes, cars, or luxury items. But unless those things are generating income, they’re liabilities.

The shift is this: focus on acquiring real assets (investments, businesses, income-generating tools) that create cash flow and grow your wealth over time.

Ask questions. Get clear. And make asset-building a lifelong habit!

3️⃣ Wealth = Time Freedom ⏳💸

In this chapter, Kiyosaki redefines wealth not as a dollar amount, but as time.

Wealth is how long you can live without working. It’s the number of days, weeks, or months your assets can cover your lifestyle without needing a paycheck. That’s real financial freedom.

It’s not about just having money; it’s about having time. Time to rest, to create, to live on your terms.

Ask yourself: If I stopped working today, how long could I maintain my lifestyle from my assets alone?

That’s your current wealth.

And the goal?

To grow your asset-based cash flow until it fully replaces your income. That’s when you stop trading time for money and start living in true freedom.

🔥 3 Specific Action Steps to Apply Now

✨ Step 1: Create Your Personal Financial Dashboard

Start by building your own Personal Financial Overview— a place where you can see everything clearly and honestly.

💡 How I Started: I created a simple overview that helped me get clear on my money. I included my monthly income and expenses, a space to track my progress, and most importantly—a basic list of my assets and liabilities. That’s where the real shift happened. Seeing what was putting money into my life versus what was taking it out gave me a whole new perspective.

It’s not perfect, and it’s still evolving but it gave me visibility. And visibility is power.

Now, during my weekly Money Power Hour, I take time to update the numbers. I track what’s growing, what’s shifting, and how I’m really doing, not just how it feels emotionally.

One number I always check is:

Monthly Asset Cash Flow ÷ Monthly Expenses = Months of Wealth

This shows me how long I could cover my lifestyle if I stopped working today. It’s the clearest picture of financial freedom I’ve ever had. The more months I can cover, the more peace, choice, and freedom I create.

Track it consistently because awareness builds alignment, and alignment builds wealth.

✨ Step 2: Learn the Language of Wealth

Before you can build wealth, you have to speak the language of money. In Chapter 2 of Rich Dad Poor Dad, we learned that financial literacy isn’t just about numbers—it starts with words.

If you don’t understand the vocabulary of money, it’s easy to stay stuck, confused, or dependent. But once you learn the language, you gain power, clarity, and direction.

Here are some of the key financial literacy terms from Chapter 2, along with simple definitions to get you started:

Asset: Anything that puts money into your pocket.
Liability: Anything that takes money out of your pocket.
Cash Flow: The movement of money—in and out of your life or business.
Income Statement: A record of your income and expenses over time.
Balance Sheet: A snapshot of what you own (assets) vs. what you owe (liabilities).
Net Worth: What’s left when you subtract liabilities from assets.
Financial Aptitude: Your ability to manage and grow money once you earn it.
Wealth: The amount of time you can survive financially without working—measured by your assets’ income vs. your expenses.
Passive Income: Money earned without continuous active effort (e.g. rental income, dividends).
ROI (Return on Investment): A way to measure how profitable an investment is.
The Rat Race: The cycle of working harder just to pay increasing bills—without building true wealth.
Bracket Creep: When raises push you into higher tax brackets, increasing your tax burden.
After-Tax Dollars: The money left after taxes—what you actually get to spend or invest.
Home Equity Loan: A loan taken out against the value of your home.
Reinvestment: Putting money you’ve earned back into income-producing assets.

💡 How to Start: Create a “Wealth Glossary” in your journal or dashboard. During your weekly Money Power Hour, pick 2–3 words to define, find a real-life example, and reflect on how they apply to your money right now.

When you know the language of wealth, money stops feeling overwhelming and starts feeling empowering. A financially literate woman knows the terms, owns the tools, and builds the life.

✨ Step 3: Set One Asset-Building Goal

Once you’re tracking your numbers and learning the language of money, it’s time to take action. Wealth doesn’t grow from awareness alone—it grows from aligned, consistent steps. And one of the most powerful things you can do is start building an asset.

An asset is anything that puts money into your pocket without needing you to work for it every time. Think of it as something that earns for you, even while you sleep.

💡 Beginner-Friendly Asset Ideas:

A high-yield savings account that earns interest over time
Starting with $10–$50 a month in a basic investing app like Acorns or Fidelity
Creating a simple digital download to sell online (like a checklist, template, or guide)
Opening an online resale shop for clothes or vintage finds
Paying off debt (yes—freeing up cash flow can be a step toward building wealth too)

💡 How to Start: Pick one simple asset to begin with. Write it down. Break it into tiny, doable steps. Set a goal and a timeline.

You don’t need to do everything, just one thing. Because consistent, intentional moves create momentum. And momentum creates wealth.

Join the Next Powerful Creator Money Mastermind

🗓️ Every Thursday at 6:00 PM CST on Zoom

Let’s continue building financial confidence and creative power together!

💖 Personal Note from Amber Breanna

If no one ever taught you how money works, that’s not your fault. But now you get to choose differently.

This chapter reminded me that knowledge isn’t just power—it’s freedom.

Once you learn how to control your cash flow, you unlock more than wealth.

You unlock options.

Your financial life doesn’t have to look like everyone else’s.

And it shouldn’t.

Trust your brilliance. Use the mirror.

And remember:

The rich buy assets. The poor only have expenses. The middle class buys liabilities they think are assets.

With love & power,

Amber Breanna ❤️

Disclaimer: This content is for educational and inspirational purposes only and does not constitute financial advice. Please consult a licensed financial professional before making financial decisions.