Is Gen Z Totally Doomed Financially?
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More and more and more stories out there about Gen Z and their fiscal situation and their debt hole, debt hole that they’re in. They keep sinking further and further down. Again, I’m kind of hoping that maybe these kids will understand why they’re going further into debt and why things have gotten so expensive. But I’m going to be honest, okay?
Things have always been kind of expensive when you’re a kid, when you graduate from college. And they’re talking right now, they’re saying the rising debt load is a story today, reflecting a surge in prices for food and shelter at the start of their careers. Larger percent of Gen Z that graduated with student loans. The average credit card balance for 22 to 24 year olds was $2 ,800 in the last quarter of 2023, you want to go back 10 years inflation adjusted, it was $2 ,200. Younger people with higher debt are more delinquent on credit card payments and need to rely on family for help if they lose their job. And then again, they find anecdotal stories with kids. Here they got one young lady who was working for a publishing company that paid her 60 ,000.
dollars a year New York City. Again, it was that money was just enough for her to cover her portion of the rent for her New York City basement apartment. I had one of those. I had one of those and then she was laid off. And she’s dealing with that and other stories here median annual wage for recent college grads was 60 ,000. It was 58 ,8 in 2020 and prices have gotten
you know, much more expensive. Listen, you know, people just message you Gen Zers out here. I’m just just a bit of advice. OK, you want to go and live and start your career and again, go work in a big city. I can I recommend go do it. Go go live in New York if you want to do that. Go live in Nashville, Tampa, whatever it may be, Atlanta, whatever big city, if that’s something you want to go ahead and do.
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If it’s something you’ve dreamed about doing, you’re going to regret it, quite frankly, if you don’t. It’s in my humble opinion. You know, nothing wrong with going out and doing that. But understand, understand that the costs that are involved. I mean, you’re talking about this young lady at sixty thousand dollars, a hundred thousand dollars in New York City is not going to get you that far at this point in time. Like I said, play with an adjustment of inflation adjusted calendar calculator, excuse me. And you see.
See what the money was worth 10, 20, 30 years ago. You got to find yourself a second job. You have to find yourself a second job. Nothing wrong with working a night or two on the weekend, looking to put money away, looking to build upon something. Living paycheck to paycheck, you’re young and you’re in the city and you’ve got a good job, you’re going to have a good time, but you’re not.
really going to be building much at that point. And again, it’s one of the things that people need to understand what it takes. It is a tough slog in many of these places, and it’s not easy. And I get it. I get it. I mean, like I said, I’ve got kids that are in college and, you know, I go to my daughter’s campus down there in Tampa, Florida, and it’s like a it’s like you’re on a cruise ship for crying out loud. It’s beautiful.
Beautiful. That’s not real life. That is not reality by any stretch of the imagination. You’ve got to get that through your head. Now, mom and dad, if you’re lucky, maybe they’re going to help you out to some degree. Maybe you don’t have any student loans or anything like that. And good for you. Good for you. But you don’t rest on your laurels. You really want to make it, OK? Again.
Take a look at people that you, not just the, I’m not talking about the nonsense that you see on TV and some ridiculous television show. Take a look at people that have been true success stories in their industry, whatever it may be. Whatever you, I don’t care if you want to, you’re involved in fashion. I don’t care if you’re involved, fine, it doesn’t make any difference. It is a grind. It’s a grind. It’s not gonna be easy. It’s not an, a,
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eight hour workday in any of these places just doesn’t work that way. And you have to know that going in and you have to be willing to do what it takes. This is the terrain that we’re dealing with right now. Inflation is not going anywhere. It’s not. The government continues to spend and spend and spend and spend and spend. And yes, you know, people are, are starting to, it’s starting to garner a little bit of attention out there, but not enough. Not enough. You don’t have either the leading presidential candidates talking about it. So again, don’t expect really anything to change at this point in time. So guess what? You’re going to have to work harder. Watchdog on wallstreet .com.
