Gen Z feels broke despite record stock markets, says expert

Personal finance expert Dave Ramsey says debt is why many young Americans do not feel the benefits of a strong stock market. In a Fox News interview, Ramsey argued that financial stress makes people feel worse about the economy even when indicators look strong. He said Gen Z and millennials are using much of their income on monthly bills and debt, leaving little for savings or investment.

Ramsey pointed to car loans, credit card balances and student loans as the biggest expenses. Americans hold about $1 trillion in auto debt, $1 trillion in credit card balances and nearly $2 trillion in student loans, he said. Younger people shoulder a significant portion of this debt, making it harder to save for a home. High home prices and mortgage rates around 6.66% add to the challenge.

Ramsey said someone earning about $80,000 in the Midwest could afford a $329,000 home if not burdened by large debt payments. He warned against spending on status symbols, saying expensive car payments keep people broke. The stock market is up about 13% year to date, but Ramsey said many younger Americans are not participating because their money goes to debt instead.