Financial personality George Kamel acknowledged that Gen Z got "financially screwed" due to high housing prices, student loans, and wages that haven't kept up with inflation.
"The issue is not that they're lazy or entitled," Kamel said before touting Gen Z as "one of the most impressive generations yet" in a recent YouTube video on his channel.
Kamel then shared some ways Gen Z can improve their financial situation, saying that it's better to do something about it than sit and complain about it.
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Home Prices Continue To Soar
Housing costs have soared over the past few decades, but wages haven't kept up. Kamel said that the median home price was $84,000 in 1985, and the median income was $24,000. That means you needed less than four times the median income to buy a house.
However, the median house price is currently $410,000, and the median income is only $85,000. Gen Z needs almost five times the current median income to buy a house.
"Mortgage rates are just making the problem worse," Kamel said in the video. Higher mortgage APRs can increase monthly payments by hundreds of dollars.
"For Gen Z, this dream looks increasingly unrealistic," he said.
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Student Debt Looms Large Over Many Gen Z Consumers
Kamel said that the average Gen Z consumer pays $300 per month toward student loans, and that debt can linger for many years. Those extra payments prevent people from saving for down payments or investing in stock portfolios.
"We were all told that college is a necessary, unquestionable path to upward mobility," Kamel said, while questioning the return on investment of a modern degree.
Student loan payments and rising housing costs have exceeded wage growth. Kamel ran an inflation calculator that showed money has lost half of its purchasing power over the past 25 years.
"The numbers literally don't add up at the end of the month," Kamel said. "Even when they do make smart money choices, it feels like they will never get to enjoy life the way their parents did. They're watching previous generations retire comfortably while they're over here wondering if they will ever be able to afford a house and have kids."
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Improving Your Financial Situation
Kamel's video didn't aim to justify Gen Z for falling short on financial goals or spending recklessly. He acknowledged current hardships while putting responsibility where it belonged.
"Your financial situation might not be all your fault, but it is your responsibility," he said in the video.
He said that lacking a financial cushion, being impatient, and not being content are the three obstacles everyone must overcome to improve their finances.
"We need a bigger gap in order to save for our goals and live our best life," he said while encouraging people to create budgets, live below their means, and pay off debt.
Kamel also encouraged Gen Z individuals to think in the long run instead of stopping when their financial situation doesn't get better right away. He wrapped up his advice by telling people to avoid comparing themselves to others and not getting into debt for the sake of keeping up with others.
"You don't need to flex," he said.
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