Gerrard Kaonga
A finance guru didn’t hold back as he revealed what the ‘real’ issue is when it comes to the current cost of living crisis impacting the young generations.
Thankfully, the finance guru didn’t go down the typical hole that people often parrot when it comes to finances, e.g young people need to just pull themselves up by their bootstrap and stop ordering so many damn avocado toasts and going on holiday every 3 days.
Admittedly, finding ways to cut back on anything that costs a fair amount is good advice, but when it comes to affordability on a day to day basis, for Gen Z and millennials in the US, things can be pretty dire.
But financial guru Dave Ramsey, claimed that it isn’t all either generations’ fault.
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In fact, speaking on a recent episode of his investing podcast The Ramsey Show he said much of the poor financial skills seen from people in both generations is because they have been ‘brainwashed’ and ‘screwed over’.
Ramsey clarified that he wasn’t trying to blame social media or people living beyond their means, but rather that it is the banks and the US congress that have taken advantage of both generations.
He said: “There is a serious pinch on these two generations but it is not because things are too expensive.
“It is because the large banks and the car companies and the US congress have conspired to screw them.
“We have record credit card debt, the most ever.
“They have been brainwashed to believe by the big banks, that if I use a credit card I can prosper with the points and the airline miles which is mathematically ludicrous.
“They have been brainwashed by the lending industry that if they have a high FICO score they are somehow winning when 100 percent of the mathematical items in the algorithm for the FICO score are debt related.”
He continued to say that your FICO score is not a financial health score but rather an indication of how much you have been ‘screwed’ by large banks and [credit car companies].
He went on to say these two generations are ultimately ‘handcuffed’ by these mega banks, US congress and car companies and this is where the affordability crisis is coming from.
He went on to speak directly to young consumers and said: "These people are not your friends.
“If you don't make it your job to quit being screwed, then you're going to have affordability issues.”