Talking about finances can be pretty scary, especially when you’re pretty young into your career and the adult world. But each generation is getting more comfortable talking about finances with their kids, so that’s getting better over time. The trick, though, seems to be getting advice that works for you.
One financial guru who has been popular for a long time has been getting some pushback from younger generations. Let’s see what the fuss is all about!
Here are Five Fast Facts on the pushback to Dave Ramsey:
- ❓ Who’s Dave Ramsey? Ramsey is a conservative Christian financial expert with almost 30 million regular followers of his radio show and social media channels. In his own young adult years, he drowned in debt, went bankrupt, and used his personal experiences to build a philosophy to recover that has since grown into a financial guidance empire spanning bestselling books, multimedia national syndication, and more. Irony can be pretty ironic, can’t it?
- 📣 What’s His Message? Ramsey advocates avoiding debt like the black plague, paying cash for everything (yes, even big purchases like cars or houses), and embracing a frugal life. Rice and beans, for example.
- 🤨 Spicy Takes - Some of Ramsey’s guidance is out of sync with conventional wisdom (even he admits this). Things like ignoring credit scores, only getting 15-year fixed mortgages with a 10% down payment, and paying off debt balances based on size (i.e. “snowball”) rather than interest rate are things that many other experts disagree with. Though some of that is probably intended, and something that makes his message stand out.
- 🚫 Young Adults Say No - Lots of adults in their 20s and 30s generally agree with big chunks of Ramsey’s philosophy but are now pushing back on some elements of his message. They say his all-or-nothing approach is out of touch with their reality, and that the economic landscape has shifted drastically, meaning his advice doesn’t apply well anymore. To illustrate, the TikTok hashtag #daveramseywouldntapprove has stacked up almost 70 million views (and counting). Obviously, you really shouldn’t believe everything you see on TikTok, but that’s a lot of views…
- 📈 Today’s Landscape - The TikTok-ers may have a point. In recent years, over the last 20 years, inflation has seen generational highs, the cost of college has doubled (average student federal loan debt is almost $37k), home prices have skyrocketed, and overall debt has increased 27% for Americans in their 30s (the biggest jump for any age group). Basically, financial pain abounds.
🔥Bottom line: Love him or loathe him, Dave's helped millions tame their spending and kick debt to the curb. But hey, advice is like pizza toppings – everyone's got their own taste. So, take Dave's words with a pinch of salt and make your own financial moves!
What's your take on Dave Ramsey and his money mantra?
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