Millennials and Gen Z living at home are a ‘trainwreck’ thanks to their parents,...
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Millennials and Gen Z living at home are a ‘trainwreck’ thanks to their parents, says personal finance guru Dave Ramsey
Personal finance guru Dave Ramsey has a lot to say about the nearly half of young adults who are still living at home—a level that hasn’t been this high since the Great Depression.
This cohort (those ages 18 to 29) is driving the growth for luxury goods in the U.S., say Morgan Stanley analysts in a December report. The analysis found that living at home freed up older Gen Z’s and younger millennials’ discretionary spending, enabling them to snap up designer handbags and watches. Ramsey, a self-made millionaire and author of numerous personal finance books, blasted the trend on a recent episode of “The Ramsey Show.”
“So, let me get this straight. You live in your momma’s basement, but you got a Coach purse,” Ramsey said. “Here’s what’s going to happen—you cannot avoid life, it’s coming for your butt. Momma can’t protect you.”
Saying the trend will result in a “trainwreck,” Ramsey blames not the young adults but their parents for “out of control” helicopter parenting and “coddling.”
“The problem is you’ve got debt, you’re not earning enough money, and you’re not doing enough to go out and change it,” co-host Jade Warshaw added. “Mom and dad can’t do this for you.”
But the situation is a little more complicated than that. The economy, rather than parenting or lack of willpower, is forcing many young adults to live at home. (The Ramsey team didn't respond to request for comment.)
Living at home can help young adults save money
Millennials, a highly educated cohort who graduated into the Great Recession and its aftermath, entered a difficult job market while saddled with enormous student-loan debt. Many have since been able to make strides in building wealth, but the long act of getting there has prompted them to marry, start a family, and buy a home at a later time than their parents did—if they even partook in these life milestones at all.
“It’s almost like we don’t want millennials to get a piece of the American Dream,” André Perry, a senior fellow at Brookings Institution, told Fortune in November.
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