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- Young workers are pushing back against Dave Ramsey's financial advice on TikTok.
- They argue that Ramsey's “debt-free” mantra is outdated and ignores the value of self-care.
- Some say his home-buying tips are unrealistic as prices soar.
Dave Ramsey lacks influence with Gen Z.
The 63-year-old host of the financial talk show “The Dave Ramsey Show” has long charmed many followers with his simple mantra of living debt-free.
But amid rising costs of living, soaring home prices and mounting student debt, young workers are rebelling against the advice of America's favorite financial guru.
In his TikTok videos, his tips are said to be outdated and even a little depressing.Let's start with trends The Wall Street Journal reportedracked up millions of views on TikTok under the hashtag #daveramseywouldntapprove.
“I'd rather have some caffeine than be depressed over $6.”
One of Ramsay's maxims is to kick your “coffee habit.” He says if you want to live debt-free, you should stop spending $4 on a latte every morning.
“You'll spend $63 a month. You'll spend $766.50 a year. You'll spend $22,995 over 30 years,” says Ramsey, his financial advisory firm. Solutions wrote in a post on its website.
But a younger generation insists that lattes (which average about $6 these days) are the key to physical and mental health.
“Self-care is so important, and if you're going to buy a $6 cup of coffee every day, do it,” Jarrod Benson, a 32-year-old comedian from Orlando, told Business Insider via TikTok. “I'd rather have some caffeine than be depressed over $6.”
Benson's comments come as many young workers are disillusioned with corporate America. attitude of working to live.
“This is especially true in the West. They've seen the legacy of all these broken promises. In the olden days and in many parts of the West, if you worked for 30 years, you had this defined benefit pension and you retired. Today, none of that exists,” Rabin Jestasan, a work expert and global leader at futures consulting firm Mercer, previously told BI. .
You can't buy a house with “$50 and a pack of strawberries.”
Gen Z workers said Ramsey's advice also doesn't help them when it comes to making long-term investments like buying a home.
One of Ramsey's top tips when buying a home is to pay cash upfront and avoid taking out a mortgage. Ramsey admits this is a daunting task, but outlines his strategy on how to save up to $100,000 in cash to buy a home on the Ramsey Solutions website. There is.
“Divide $100,000 by the amount you can save each month to figure out how long it will take you to get there,” he writes, and you'll get there in between two and eight years. A list of equations is also included to help you calculate the method.
However, with housing prices soaring nationwide, young workers say it is not realistic to buy a home with cash.of US median home price The current price is about $363,000, or more than $1 million in some of the country's most expensive cities.
“The older generation, who bought a four-bedroom house and a pack of strawberries for $50, continues to lecture young people about money management,” said Josh Benson, 28, a Dallas native who works in the financial industry. That's surprising,” he said. BI than TikTok.
Younger generations began questioning Ramsey's advice on homebuying even before anti-Ramsey rhetoric started trending on TikTok.
Sarah Martinez Shaw grew up with Ramsey's advice. told BI that his tips put her in a difficult situation..
On the other hand, she says, buying a home with cash seemed like something only wealthy people could afford. At the same time, by taking a hard line on her credit card debt, Ramsey is “stigmatizing a legitimate path forward,” she said. She found that a high credit score, earned through years of responsible credit usage, was one of her best ways to secure a mortgage.
Dave Ramsey did not immediately respond to BI's request for comment.
