Rachel Cruze, financial coach and co-host of “The Ramsey Show,” told FOX Business that young adults should be careful about pursuing “quick” wealth through sports betting, cryptocurrencies and real estate investments that they may not be ready for.
Rachel Cruze warns young adults – especially young men – that chasing “quick” money through sports betting, cryptocurrencies and risky real estate transactions could jeopardize their financial future.
Cruze, a financial coach, best-selling author and co-host of “The Ramsey Show,” told FOX Business that the mistake she believes young adults make “all the time” is jumping into quick wealth strategies.
“One mistake that young adults make all the time, honestly, that drives me crazy is gambling online or making quick gains in building wealth — things like crypto or getting into real estate when they shouldn’t,” Cruze said.
The daughter of personal finance expert Dave Ramsey described sports betting as particularly risky for young men.
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Rachel Cruze, financial coach, best-selling author and co-host of “The Ramsey Show,” warns young adults against trying to make money quickly. (FOX Business)
“It’s usually men in their 20s who do this, and that’s why it’s so important to stay away from it,” she said. “You’re wasting your money on sports betting. … This is truly the economic downfall of a generation.”
According to a survey from the Siena Research Institute and St. Bonaventure University’s Jandoli School of Communication, about 27% of Americans — and 52% of men ages 18 to 49 — say they have an active account with an online sportsbook such as Caesars, DraftKings, BetMGM or FanDuel.
Cruze said young adults are bombarded with promises of easy money on social media, where influencers often tout crypto, real estate and other quick wealth strategies.
“On TikTok you can hear and see things about real estate or cryptocurrency,” Cruze said. “If something seems too good to be true, it probably is.”
Instead, Cruze says, wealth accumulation is generally less noticeable but more reliable.
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Cruze called sports betting particularly risky for young men and warned that it was “wasting” money. (iStock / iStock)
“The path to building wealth and becoming financially stable requires a long period of time and really boring things that aren’t exciting and aren’t fun, like living on less than you make, getting out of debt and investing,” she said.
Cruze said young adults often want immediate results, but there is no shortcut to long-term financial stability.
“This is going to be critical for young adults because they want quick wins, they want instant gratification, but that doesn’t happen when it’s about money in the long term,” she said. “You have to go slow and steady.”
She also warned that social media distorts expectations around careers, homeownership and spending.
Cruze said younger generations constantly see other people’s vacations, promotions, homes and major milestones in their lives, which can lead to pressure to spend beyond their means.
“One thing that this generation faces unlike really any other generation is the fact that on social media you can see what other people are doing – from getting job promotions to going to restaurants to taking vacations,” she said.
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Cruze said social media can distort young adults’ expectations about spending, careers, homeownership and success. (iStock / iStock)
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Her takeaway for young adults is to stop comparing, stop chasing, and focus on your own numbers.
“You really have to put the blinders on and focus on your life, your career, your financial situation,” Cruze said. “You can celebrate other people when they win and that’s what they promote. That’s fine. But it’s very, very important to focus on your life and be realistic about your numbers.”
Cruze’s warning is consistent with Ramsey Solutions’ broader financial advice, which focuses on the “7 Baby Steps” plan to help people pay off debt, save money and build wealth over time.
https://www.foxbusiness.com/personal-finance/rachel-cruze-warns-young-men-throwing-money-away-habit-taking-down-generation
