Financial expert Dave Ramsey has harsh down-to-earth advice for young people—stop spending so much!
Key Details
- Speaking recently on The Ramsey Show, the renowned financial expert criticized the trend of young people living with their parents and using their savings to spend on expensive lifestyles.
- Ramsey rejects the notion that young people cannot fend for themselves, saying this “coddling” generation is a “trainwreck.”
- He offers three pieces of advice for young people:
- Avoid “Buy Now, Pay Later” checkout options that allow you to defer payments.
- Avoid indulging in cheaper brands like Shein and Boohoo that make volume purchases tempting.
- Create a savings plan to help save your excess income, to help you move out, pay for utilities, and have money set aside for a downpayment on a house.
Why It’s Important
Nearly 50% of young adults between ages 18 and 29 live with their parents, the highest percentage since 1940, with the COVID pandemic increasing the already-high percentage and pushing youth out of independent living by high rent and inflation, Yahoo Finance reports.
Ramsey advises to invest into savings, pay off debt, or invest in much wiser places while still living at home. These will help build toward large purchases, create a nest egg, and be more prepared for the future.
Notable Quotes
“So, let me get this straight. You live in your momma’s basement, but you got a Coach purse. Here’s what’s going to happen—you cannot avoid life, it’s coming for your butt. Momma can’t protect you,” says Ramsey.
“The problem is you’ve got debt, you’re not earning enough money, and you’re not doing enough to go out and change it. Mom and dad can’t do this for you,” says co-host Jade Warshaw.