The Rachel Cruze Show - Are the Boomers to Blame for Our Debt Obsession?

Starting point is 00:00:05 All right, millennials and Gen Z. Let's just gather together and ask the question, are boomers really at fault for everyone's current financial struggles? Well, today I'm going to be sharing some ways that boomers might be to blame for some of our money problems. It's kind of tongue-in-cheek. Don't worry, boomers, it's fine. And I'll let you decide, though, how legitimate they are. Now make sure to like, subscribe, and share this episode with a friend.

Starting point is 00:00:32 All right, the boomers. Everyone kind of loves to hate on the boomers these days. They're like, well, the boomers did this, and the boomers got this when it comes to the economy and everything. And so, I'm like, listen, it is true. There's some realities that the boomers may have had it easier than us, or maybe not. And maybe some of the things that they did and the way they lived their lives are affecting us today. So let's jump into the list and see if it's true. All right, the first way that boomers contributed to our current financial challenges is they encouraged us too much.

Starting point is 00:01:01 Ready for this? according to the data of the Bureau of Labor Statistics, about 44% of high school graduates born between 1960 and 1964 earned a two to four year degree, 44%. Now about 73% of high school graduates born between 1980 and 1984 earned a college degree. So that's almost a 30% increase in just one generation. And Boomer parents really did. They were the generation that pushed the millennial kids to go to college, regardless of the high cost, regardless of student loans, it's like get yourself a four-year degree because for them it was a really big deal. And for them, a lot of people, they were the first generation or the first person in their

Starting point is 00:01:44 family to get a college degree. And then because of loans, it kind of opened up this wide world that most people can apply and most people can get in somewhere and you don't need the money. You just, you know, get into student loan debt. And we'll figure that out later. So that is an interesting thing to look back on when you see how loans have continued to increase over time, obviously because they're more available. You have private pseudo loans.

Starting point is 00:02:10 You have government pseudo loans, Sally Mae. But boomers, it's the question. Were they the generations to push the millennials into college, regardless if they could afford it or not? All right, reason number two that boomers are to blame is they have zero self-care needs. There is always that heated political talk at Thanksgiving. thing, and we always think, Aunt Linda, you may want to go to some therapy. You have some anger issues in there, right? Or Grandpa Jodden take care of himself, and you're like, you need to go to the doctor. You need to get that checked out. But no, they don't. Those boomers, man, they pull themselves

Starting point is 00:02:43 up by the bootstraps. And then what happened was the millennials swung the complete opposite direction. And they now are all about the self-care, all about taking care of themselves emotionally and physically, and they will put themselves into different subscription models and different ways, you know, different workouts and diets and all this. And they're going to be on trend, and they're going to take care of themselves in therapy and counseling. It's applauded. It is seen as such a great thing, right? So it's funny. The counterbalance that the boomers could have caused the millennials in Gen Zee to swing the other way. I don't know. Are they to blame or are they not? Who knows? All right, before I show the surprising history of dead,

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Starting point is 00:04:37 Or just click the link in the description. All right, number three, keep blaming the boomers. All right, boomers, maybe they normalized relying on debt. So you see, in the early 1900s borrowing money for consumer goods was considered irresponsible and even immoral. But after the Great Depression, which is what many of the boomers' parents live through, it became necessary and eventually more accepted as an option. So the boomer generation really kind of was the first big generation to say, yeah, we will take on debt. Credit cards became a big thing. Like if you remember that, even in the 90s when it was like a chuk-ch-ch,

Starting point is 00:05:16 like even the machines, right? I mean, like all of it kind of started happening. And the boomers were there, happy to take on the car loans, the credit cards, all of it. And so now, as millennials and Gen Z, debt is so normalized. I don't know. And the question is, I don't know, are the boomers to blame for normalizing debt in our society? I don't know. What do you think? Now, if you are in debt and you want to get out of debts, the best way to do that is to pay off your smallest debt to your largest debt. So again, we're kind of tongue-in-cheek here with the boomers. But for real, if debt is something that you want to get out of. That is the most efficient way to do it. And to have a budget, every dollar is a great app to help you get organized and started with all of your

Starting point is 00:05:59 money goals. I'll put a link down below. But for real, getting this in order is huge. So whether you're a boomer or not, getting out of debt is so powerful. All right, number four, boomers took all the good, quote, unquote, forever homes. They bought with four apples and four pennies. You know, we always joke that it's like, oh, yeah, the boomers bought their homes for, basically nothing and here we are with the craziest housing market is what it feels like a lot of drama around it and so we complained you know about sharing a bathroom with all of our siblings or even a one bathroom for the entire house like in the 90s but now millennials would do anything to inherit that mop tile you know what I mean like we look at those houses and we're like yes and amen yes and amen

Starting point is 00:06:44 we just want to be homeowners right there's so many people out there and they want to get in the housing market and the boomers were able to get in, you know, quote unquote, fairly easily, we would all say. But I don't know, I guess we can't really blame them for the housing market, but let's be honest. But for real, buying a home, it doesn't even be part of your financial plan, but I want you out of debt with an emergency fund and with at least a 5% down payment to do that. And we, again, joke about the boomers and when they bought their homes. But for real, y'all, putting the drama aside, you look at and like, okay, this is where we're at. This is the reality. So now what are we going to do with this reality that's been given to us, which means we're probably

Starting point is 00:07:20 have to change some expectations, make some different decisions around homeownership, maybe the time frame at which you buy a home or where you buy a home. But overall, homeownership is fantastic. It just may take a little bit longer, and the expectations may be a little different. And I will say this, millennials in Gen Z, we do have high expectations. Not many people want to go buy a house with a one bedroom, you know, with a one bathroom in it. Not everyone does with a full family. but in the 90s and the 80s, oh yeah, that was the life.

Starting point is 00:07:48 All right, number five, boomers are too content. So, you know, the vacations that those boomers took and took us on as millennials were not extravagant, right? I mean, it was like camping and maybe Disney once in your lifetime. Like, it was that feeling. They never took Helux out to install hardwood floors. I mean, they are pushing 70 and they're still working at that same job that they've been at forever. and ever an amen. They are very, they're a very content generation, I would say. They are, they are not ones like the millennials who are trying to keep up with the Joneses as much.

Starting point is 00:08:24 The millennials were big into that. Gen Z, not as much we're seeing with the trends. But it is fascinating that, again, their life, when you look really at the lifestyle of the 80s, pretty modest compared to today, when you look at the average square foot of a home, the aesthetics of even what's inside the home, the vacations, the cars, all of it. it. Now, there are some exceptions. There are some boomers that were still very boosy even then. But for the most part, lifestyle expectations were pretty, were much lower, I would say, than today. So those content boomers out there, we see you. Now, again, this was supposed to be fun. We don't blame you boomers for real. It's just kind of fun to poke at. But there are some really crucial money lessons,

Starting point is 00:09:07 though, we can learn from those boomers, the good and the bad. So make sure to check out my episode to seven money lessons from boomers, wins and regrets. I will put a link down if you're listening on podcasts or you can click right here. All right, you guys, remember to take control of your money and create a life you love.

The Rachel Cruze Show - Are the Boomers to Blame for Our Debt Obsession?

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