Vivian Tu, known as “Your Rich BFF,” believes that certain financial advice traditionally given to younger generations is often ignored by millennials and Gen Z. They see this advice as outdated, less effective, or no longer applicable in the modern era. One piece of advice that falls on deaf ears is getting a second job to pay down debt.
Debt burdens are common among younger generations, with Gen Z owing an average of $9,593 and millennials owing an average of $78,396. However, many younger workers feel this advice is unfeasible due to the high cost of living and current economic conditions. Inflation has significantly increased over the past 20 years, making living expenses much higher than for previous generations.
Another tip that is often dismissed is cutting out dining expenses entirely to save money.
Younger generations redefine financial advice
Millennials and Gen Z see dining out as one of their few pleasures and are reluctant to eliminate it completely.
The average person spends nearly $4,000 annually on dining out, but younger generations prefer to budget for it as a way to balance financial responsibilities and personal enjoyment. The idea of staying loyal to one employer is also less resonant with younger generations. Tu says, “Being loyal doesn’t pay.” Many younger workers believe changing jobs can lead to better financial opportunities and career growth compared to staying with one employer long-term.
The perception of debt is evolving among millennials and Gen Z as well. Tu notes, “When we lend money to poor people, we call it debt; when we lend money to rich people, we call it leverage.” Debt is increasingly seen as a financial tool rather than inherently good or bad. When properly managed, it can help individuals achieve significant milestones like homeownership or business expansion.
The focus is on strategically taking on and repaying debt to achieve financial goals, rather than avoiding it altogether.
