ECON – Ramsey vs. Kiyosaki [30 PTS]

Directions: Listed below are youtube clips that present two different financial “gurus” philosophies’ on attaining wealth. Actually, the Ramsey link is a list of ten [10] short 2-3 minute clips, some but not all, we will have watched in class. After viewing each man’s philosophy, answer the required questions below. Then respond to two of the remaining questions for each. Clearly indicate which optionalquestions you are answering. Standard rules of writing apply. Answers should be supported with examples from the video and may be typed or written.

David Ramsey’s Seven Baby Steps[10PTS)

[Required] How would you summarize each of the steps?

[Required]Of the steps, which two would be the most important in your view? Why?

[Optional] What is the percentage range he says must be hard fast savings every month? This should represent your emergency savings (see also, Personal Portfolio Spreadsheet).

[Optional] According to Ramsey, what must you do before you start saving any money?

[Optional] What’s his point about the “type” of college a student should attend?

[Optional] What’s his point about “the secrets of the rich?”

Robert Kiyosaki’s Rich Dad / Poor Dad [10 PTS]– Forty plus minutes. Respond to questions below after viewing the first 11:42 which summarizes his philosophy

[Required] What does he mean by old rules? How would you summarize his “new” rules? What is his major point about them?

[Required] Are the two “values” that Kiyosaki’s talks about mutually exclusive? Support your view with evidence from the v

[Optional] What’s his view on “school?” What are the three levels? Which one is key in his view?

[Optional] In which quadrant do you place yourself in Kiyosaki’s “Cash Flow Quandrant?” Why?

[Optional] Is Kiyosaki’s perspective “pie in the sky” for most average Americans? Support your view with evidence from the video.

[Optional] What point does he make about “earned” income versus “portfolio” and “passive” income?”

CONTRASTING POINTS OF VIEW ESSAY - REQUIRED [10 PTS]

Understanding Ramsey’s point about “living like no one else” in your golden years, contrast his philosophy with Kiyosaki’s. Which is more plausible (realistic) in your view? How are their views different? How are they similar?