Review of Cashflow 202 by Robert Kiyosaki

Introduction

Cashflow is a game by Robert Kiyosaki to teach investing tactics, terms and strategies to players. It is based on the principles of the book “”Rich Dad: How To Get Out of the Rat Race Game”. Cashflow 101 is the basic level of the game, letting you buy and sell real estate and buy stocks via cash or debt. Cashflow 202 is a more advanced version of the Cashflow game; it adds stock options and property option contracts to the mix. In this review, we’ll look at the strengths and weaknesses of the Cashflow 202 computer game.

Cashflow 202 is one of the few business games that lets you invest in intellectual property as a source of passive income.
Cashflow 202 is one of the few business games that lets you invest in intellectual property as a source of passive income. | Source

What Are the Strengths of Cashflow 202?

If you want to learn the economics of stock options and puts, Cashflow 202 is one of the best ways to practice. You aren’t running a fantasy stock market portfolio and day trading but practicing the concepts in a control game that has no real world consequences. And you learn how to manage them on a balance sheet and track the impact of these assets on your available cash flow.

Cashflow 202 teaches the value of insurance in a way no number of Dave Ramsey lectures would.

There’s more to making money than buying real estate to flip at a profit (or loss), buy stocks for capital gains or dividends and rental real estate. Cashflow 202 introduces players to many types of business deals that can generate money, from inventions to intellectual property rights to buying shares in reinsurance trusts. Even most versions of Tycoon don’t cover the same breadth of investment opportunities as Cashflow 202.

Cashflow 202 teaches the financial impact of having money tied up in options – and the risk of not having enough cash to exercise the option when you can act on it.

The digital version of Cashflow 202 shares the advantages of the computer and online versions of Cashflow 101 – you can play by yourself against computer players and save games for later.

If you think that all debt is dangerous, this is not the financial education computer game for you.
If you think that all debt is dangerous, this is not the financial education computer game for you. | Source

What Are the Weaknesses of Cashflow 202?

The game’s resources for teaching you how puts, options and other instruments work are weak.

While Cashflow 101 can be played by children in the upper elementary grades with some coaching or middle school students after they’ve read the information, Cashflow 202 is high school level at a minimum. The Rich Dad franchise does have a “Rich Kid Smart Kid” book and website, but this is actually inferior to parents teaching kids the concepts and letting the kids practice the Cashflow 101 game. If you want to teach your kids about saving and investing from very start, the Dave Ramsey Junior books and kits are the better choice.

Observations about the Game Cashflow 202

The game ups the ante on big ticket purchases. You don’t have a choice when the doodad square makes you buy a $50,000 cabin with maintenance, a $20,000 country club membership plus maintenance fees, a fancy car with a thousand a month maintenance.

The game does teach you the long term drain these items cost you, draining cash that otherwise lets you build your cash flow as well as hinders the ability to improve your situation long term. But in real life, more people would be willing to say no, you don’t get to go to a $50,000 a year college plus a thousand a month in extra fees – you’re going to state school because it is all we can afford. If the intent is to impress on you the “Millionaire Next Door” lesson that buying stuff in anticipation of becoming rich keeps you poor, it does teach that lesson.

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