Vivian Tu, recognized as “Your Rich BFF,” observes that the financial guidance typically offered to the younger population is frequently overlooked by millennials and Gen Z. This demographic regards such advice as antiquated, ineffective, or irrelevant in today’s world. One commonly disregarded suggestion is to take on a second job to alleviate debt.
Debt issues are prevalent among younger individuals, with Gen Z carrying an average debt of $9,593 and millennials averaging $78,396 in debt. Nonetheless, many younger employees find this recommendation impractical due to soaring living costs and the current state of the economy. Over the last two decades, inflation has surged, leading to living expenses that are significantly higher than those faced by their predecessors.
Another often-overlooked suggestion is to entirely eliminate dining expenses as a means to save money.
A New Approach to Financial Advice by Younger Generations
For millennials and Gen Z, eating out is among their cherished indulgences, making them hesitant to forgo it entirely.
The average individual spends close to $4,000 each year on dining out, yet younger generations choose to incorporate it into their budgets, aiming to strike a balance between financial duties and personal satisfaction. Additionally, the notion of remaining loyal to a single employer is waning among younger workers. Tu emphasizes, “Being loyal doesn’t pay.” Many believe that switching jobs can unveil superior financial prospects and career advancement compared to a long-term commitment to one employer.
The way debt is perceived is also evolving among millennials and Gen Z. Tu remarks, “When we lend money to poor people, we label it as debt; when we lend to wealthy individuals, we term it leverage.” Debt is increasingly viewed as a financial instrument that, when managed wisely, can facilitate significant achievements such as home ownership or business growth.
The emphasis is now on the deliberate acquisition and repayment of debt to reach financial objectives rather than simply evading it.
