A blunt-talking personal finance guru has a brutal message for younger Americans who say everything has become unaffordable.
Dave Ramsey did not hold back on a recent episode of his investing podcast ‘The Ramsey Show’ as he tore into millennials and Gen Z for their poor finance skills.
Ramsey, one of the most famous voices in personal finance, said there is ‘a serious pinch on these two generations,’ but insisted it is ‘not because things are too expensive.’
Instead, he blamed ‘the large banks and the car companies and the US Congress,’ claiming they have ‘conspired to screw them.’
He pointed to record levels of consumer debt, saying, ‘We have record credit card debt. The most ever’ and then accused banks of ‘brainwashing’ young people into believing credit cards and rewards points lead to prosperity, calling that belief ‘mathematically ludicrous.’
The commentator also criticized the use of credit scores, arguing, ‘It is not a financial health score,’ and claiming a high FICO score simply measures ‘how much you’ve been screwed by Citi Bank and Fifth Third and these large banks.’
He highlighted rising car costs, stating that ’20 percent of the borrowers that left the car lot last month left with a car payment over $1,000 a month,’ and said student loans are a major contributor to financial strain.
He described banks loaning ‘$100,000 to an 18-year-old who can’t buy beer’ because the debt is guaranteed by the US government.
Dave Ramsey (pictured) is one of the most famous voices in personal finance
Ramsey has a brutal message for Millennials and Gen Zers who complain that everything is unaffordable
Ramsey accused banks of ‘brainwashing’ young people into believing credit cards and rewards points lead to prosperity
In a warning to young consumers, he said, ‘These people are not your friends,’ calling debt ‘the most advertised and marketed product on the planet.’ He added, ‘If you don’t make it your job to quit being screwed, then you’re going to have affordability issues.’
The segment concluded with a blunt message for frustrated young adults: ‘If you want to be pissed off at something, don’t be pissed off at capitalism… your problem is you stepped up into the bear trap.’
Ramsey’s harsh words come just months after American Express announced the newest version of its elusive Platinum Card.
The annual fee jumped from $695 to $895, but Amex says the extra perks more than make up for the $200 bump. According to Amex, the card’s benefits are worth a total of more than $3,500 a year, including lounge access, cashback credits and a limited-edition mirror card design.
Months before Amex launched the new Platinum Card, JPMorgan Chase rolled out a major update to its premium Sapphire Reserve credit card.
The annual cost rose to $795, up from $550. It’s the biggest fee increase since the card’s launch in 2016, but Chase said the revamped card offers more than $2,700 in value, with expanded benefits across travel, dining, and entertainment.