Authors Emi Kiyosaki and Robert Kiyosaki.

Why do the rich get richer and the poor poorer? How can one turn one's life around - and when's the best time to teach children about finance? Robert Kiyosaki has the answers.

Kiyosaki was born and raised in laid-back Hawaii but shares his financial wisdom in Unfair Advantage: The Power of Financial Education.

Amid a worldwide financial crises, the book encourages readers to act positive and be financially independent by casting off stereotyped concepts of disadvantage. Kiyosaki teaches his readers clear and actionable steps for inner peace, pointing out ways for the average Joe Public to surpass themselves among their peers in financial education, rather than with flowery anecdotes or creeds.

His "Rich Dad" series has been published in more than 109 countries and sold about 30 million copies worldwide.

His famous soundbite "Your house is not an asset" aroused heated discussion but after the sub-prime crisis, turned out to be unpleasantly right.

Kiyosaki, a successful writer and businessman, has a sister, Emi Kiyosaki, a Tibetan Buddhist nun. They co-authored Rich Brother, Rich Sister: Two Different Paths to Prosperity, God and Happiness, published recently.

The following is an interview by the Global Times with Robert Kiyosaki.

Global Times (GT): You coined the term Financial Quotient; do you think it will be as popular as EQ in the future?

Robert Kiyosaki (RK): I don't know if the term will be as popular… I do know that if the concept doesn't... the world will continue to see recessions and depressions. Until we get serious about increasing the world's financial IQ, the world will struggle financially.

GT: Chinese have the habit of saving money but Westerners prefer to work hard and play harder. Which is better in terms of financial education?

RK: Americans, much like the Chinese, also play by the old rules of money. Until recently, they weren't as good at saving as the Chinese but since the recent financial crisis, many Americans have gone back to saving and living conservatively. For Americans, this is not smart because of the Federal Reserves' policies related to the US dollar, printing more and more dollars. Soon, the dollar will lose much of its value, and savers will be losers. For the Chinese, saving is even more insane, since inflation is so high in China. When a currency is losing so much value so quickly, there are few reasons to save and many reasons to use it to purchase assets that increase in value with inflation, such as real estate or commodities.

GT: A recent Gallup World Poll shows that China ranks 125th in all the 155 countries in term of happiness. Do you think there is a direct link between wealth and happiness?

RK: I'm sure there are many factors that play into how low "happiness" ranks among the Chinese people. In terms of money, many people say money can't buy happiness—and that is true. But money can help you enjoy the things that contribute to happiness and enable you to live a richer, more fulfilling life. It's not money that brings happiness, but rather the freedom it creates to enjoy things.

GT: In your opinion, which is better, to be born into a rich family or poor family?

RK: Probably the best scenario is to be born into a rich family that doesn't hand over easy money as an inheritance to their kids but rather teaches their children about money and provides a strong financial education. My good friend Ken McElroy does this for his children. He is teaching them valuable life lessons and helping them experience business and investing at an early age. That will be worth more than any money they might one day inherit.

GT: An increasing number of youngsters in China view an apartment as an indicator of success. How would you see that?

RK: There is nothing wrong with buying a house or an apartment, as long as you understand it's not an asset. I own my own home and fully understand that it's not an asset. Rather, it's my home. I don't expect to realize a "gain" from it and only hope to enjoy it. The problem is when people say they bought a home because they thought it "was a good investment." It's not an investment. It takes money out of your pocket and you only make money if you time the market right when selling and realize a profit. Often I encourage people to buy a few investment properties that cash flow before purchasing a home of their own.

GT: As immigrants to the US, Chinese and Japanese seemed to fare well: how did you view this stereotype?

RK: Many Asian immigrants have started their own businesses and aren't afraid to work hard. That is the key to their success. Unfortunately, many of these parents force their kids into universities, take on huge debt, and pin their hopes for their kids' futures on being a doctor or a lawyer. They are not passing on the lessons they've learned about running a business. This will hurt their children in the long run because even though they may make a lot of money, they also pay the most in taxes. Unless doctors and lawyers and other high-paid professionals learn how to invest their money well, they'll suffer financially.

GT: A large part of your teachings focus on generating passive income by means of investment opportunities. What is the most difficult part for this transition?

RK: The hardest part for most people is changing their mindset. While it is hard work to find deals, pull them together, and profit from them, you'll never get off the ground if you can't think like an investor and entrepreneur. Knowledge is the real money.

GT: Chinese people cherish relation or guanxi as even more important than possessions. Some even use guanxi to make a fortune instead of hard work.

RK: In the United States, there's a proverb that says, "No man is an island." What that means is nobody can be successful without a community and a network to help. I'd say that there should be an emphasis on both guanxi and hard work. Together, those will help you go far.

GT: You said there are four basic types of people: workers, small-business owners, investors and entrepreneurs. In your opinion what is the perfect proportion of investors and entrepreneurs in a society?

RK: That would vary from economy to economy. Ideally, many more people would be investors and business owners rather than employees. I believe this would lead to happier societies and more peace, since much of the world's conflict is over resources and money.

GT: Chinese have a saying, which goes that it takes ten years to grow trees but a hundred years to rear people. It means the education of child is the most important long invest. Do you agree?

RK: As long as that education was a full education that included comprehensive financial education. Without an understanding of money and how it works, an education... can become a tool of the rich by ensuring legions of "good employees" who are financially ignorant.