Rachel Cruze, a financial coach and producer of “The Ramsey Show,” told FOX Business that young adults should be careful about chasing “quick” wealth through sports betting, crypto and real estate moves they may not be ready for.
Rachel Cruze is warning young people – especially young men – that chasing “quick” money through sports betting, cryptocurrency and risky real estate ventures can put their financial futures at risk.
Cruze, a financial coach, best-selling author and co-host of “The Ramsey Show,” told FOX Business that the mistake he sees adults making “all the time” is buying into get-rich-quick schemes.
“The one mistake we see adults make all the time, honestly, and it drives me crazy, is gambling online or getting too quick to build wealth — things like crypto or getting into real estate when you shouldn’t,” Cruze said.
The daughter of financial expert Dave Ramsey has singled out sports betting as the most dangerous for young people.
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Rachel Cruze, financial coach, best-selling author and host of “The Ramsey Show,” warns young people against chasing a quick buck. (FOX Business)
“Usually it’s guys in their 20s who do this, so to get away from that, it’s really important,” he said. “You’re throwing your money away on sports betting. … It’s really bringing down a generation economically.”
About 27% of Americans – and 52% of men aged 18-49 – say they have an active account with an online sportsbook such as Caesars, DraftKings, BetMGM or FanDuel, according to a study from the Siena Research Institute and St. Bonaventure University’s Jandoli School of Communication.
Cruze said young adults are bombarded on social media with promises of easy money where promoters often tout crypto, real estate and other get-rich-quick schemes.
“You can hear and see on TikTok things related to real estate or cryptocurrency,” Cruze said. “If something seems too good to be true, it probably is.”
Instead, Cruze said the wealth of construction is usually not flashy but reliable.
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Cruze cited sports betting as particularly dangerous for young people, warning that they are “wasting” money. (iStock / Stock)
“The path to building wealth and financial stability has taken a long time and doing boring and boring things, like living on less than you make, getting out of debt and investing,” she said.
Cruze said young adults often want quick results, but there is no shortcut to long-term financial stability.
“That will be the key for young people, because they want to win quickly, they want instant satisfaction, but that is not possible when it comes to long-term money,” he said. “You have to go slow and steady.”
He also warned that social media is distorting expectations about work, home ownership and spending.
Cruze said younger generations are constantly seeing other people’s vacations, promotions, homes and important life events, which can create pressure to spend beyond their means.
“One thing that this generation is dealing with, unlike any other generation, is the social media episode, that you have the ability to see what other people are doing – from promotions to food to vacations,” he said.
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Cruze said social media can change seniors’ expectations about spending, jobs, home ownership and success. (iStock / Stock)
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His goal for young adults is to stop comparing, stop chasing and focus on their numbers.
“You 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 makes them famous. That’s fine. But focusing on your life and being honest with your numbers is very important.”
Cruze’s warning is in line with the broader financial guidelines of Ramsey Solutions, which focuses on its “7 Baby Steps” program to help people pay off debt, save money and build wealth over time.
