Dave Ramsey Drops Truth Bomb About Gen Z

This post may contain affiliate links. Please see my disclosures. for more information.

On a recent episode of The Megyn Kelly Show, financial guru Dave Ramsey spoke about Gen Z, and many people were surprised by his quote.

He said, “This new generation, Generation Z, they’re amazing. There’s a percentage of them, I’ve got 19-20 year olds watching us on YouTube and they’re calling me, and they’re within a month or two of getting their first home. There’s a dirty little secret that there’s A section of Generation Z is definitely the most productive and amazing young people I’ve seen in years. There’s a section of them that are useless but that’s true of any generation.”

This was a surprise because Dave said, “So, let me get this straight. You live in your mom’s basement, but you’ve got a coach bag. Here’s what happens. You can’t avoid life, it’s coming for your ass. Mama can’t protect you.”

But more often than not, the second quote is taken out of context. Next, he says he doesn’t blame Gen Z or Millennials for the impending “trainwreck” but their parents (mostly Gen Xers) for raising choppers and coding.

What about baby steps?

The most confusing part about the quote about being a “train wreck” to living with your parents runs counter to its Dave Ramsey Baby Steps philosophy. Dave helps people get out of debt and work toward financial independence in this popular step-by-step plan.

Living with your parents seems like a great way to reduce your expenses and start building wealth. But Dave takes a different view.

This is primarily because a Morgan Stanley report stated that many young people who live with their parents use the money they save on housing to buy luxury handbags and watches.

If that’s the case, it makes sense why Ramsey would rant about them. It would be better if they moved in with their parents and used the money they save to pay down debt, build an emergency fund, or save for a home.

Not all Gen Zs or millennials who moved back in with mom and dad waste their money.

Gen Z and Millennial Financial Statistics

So what does the finances of millennials and generation Z look like?

According to US Census data, nearly half of Generation Z and young millennials (ages 18-29) live with their parents. This is the highest percentage since the Great Depression.

When surveyed, the top reasons for returning home were to pay off debt so they could get married (37%) and save for a home (29%).

Other stats for this group include:

  • Savings of just over $2,400
  • Annual income of $22,924
  • I spend close to $2,000 a year on social media
  • Almost 82% have a side hustle

While most live in the home, a large portion of the others rent and a small percentage own a home.

Related: Here’s how to save for a home while you rent

The Takeaway About Gen Z and Millennials

Dave’s original quote about a good part of Gen Z works well when you put all this information together.

It’s like any generation, including boomers. There are some in the group who are excelling financially and others who need to catch up. And there is a lot in between. We hear more about the extremes than we do about those in the middle.

So while you’ll no doubt read stories about how Gen Z waste their money and can’t get their act together, that’s probably just a small part of the bunch. Many work hard to become financially independent.

If you come across one in the wilderness, offer them some of the wisdom you’ve learned about life and finances over the years. That is, of course, if they are willing to listen.

For Gen X parents to allow their children to live in the home, it’s best to set some rules, including how long they can live and agree to pay rent and share household duties.

You don’t have to charge the market rate to rent, but $500 is more than reasonable. Having them pay for some groceries and doing the dishes are also good ideas. The more practice they can get with adults, the better prepared they will be in the real world. The chances of wrecking trains decreased.

Finally, Gen Z and stay-at-home millennials need to take some calculated risks in life. You don’t need to have perfect finances to buy a house or have no debt to get married. No matter how hard you try to plan, life will happen and change your plans. Often times, these struggles will help transform you into a better person if you are willing to grow.

Leave a Reply

Your email address will not be published. Required fields are marked *