CNBC host and multi-millionaire Jim Cramer said the younger generation is broke because they spend too much on margaritas from their restaurant and not enough on the stock market.
The Mad Money host, who is worth over $100million, says Gen Zers living paycheck to paycheck are spending too much money on having fun rather than saving or to invest.
“One of the issues I see about Gen Z-ers is that they’re not frugal enough,” Cramer said. “They look like they have a lot of money, even though they don’t have much.”
He said he came to the conclusion while at his Brooklyn restaurant, the San Miguel Bar, where he claimed to have seen a young man buy five $14 margaritas for himself “like [money] grew on a tree.’
“On the one hand, you’re entitled to have all the margaritas you want,” Cramer said, “but on the other, you’re like, ‘I can’t invest, I have student loans.’ I think it’s counter-intuitive.
CNBC and Mad Money host Jim Cramer say Gen Z is spending too much on their $14 margaritas and not investing enough in the stock market
Cramer said he saw someone buy five $14 margaritas at his San Miguel bar (pictured), in Brooklyn, and said the young man should have used the money to invest in stocks
Cramer admitted it might seem hypocritical of him to criticize. He owns a $3.4 million estate in Quakertown, Pennsylvania, listed under his name after moving there in 2021
Cramer’s comments came on the heels of a recent survey by Deloitte, which polled 14,808 Gen Zers, revealing that almost half of those between the ages of 18 and 24 lived on paycheck to paycheck. ‘other.
Young Americans are also struggling with heavy student debt, with a bachelor’s degree carrying an average debt of $28,950, according to NerdWallet, as well as record inflation, which is at its highest in more than 40 years.
Yet Cramer seemed indifferent to the plight of students and young professionals.
‘People always say, ‘I have nothing to invest, so I can’t invest.’ I hear that all the time from people in their twenties,’ he said.
The millionaire also suggested he had it harder than most people who frequented his restaurant when he was their age.
‘I know you might say, ‘Oh, Cramer is rich; I don’t want to hear his lesson,” he said. “But did you live in your car on the side of Interstate 5?
Last year, Money, Inc. reported that Cramer had a net worth of over $100 million, with the Mad Money host having moved from New Jersey to Quakertown, Pennsylvania.
The Quakertown home listed under his name is a sprawling three-bedroom, six-bathroom estate worth $3.4 million.
It also houses a large barn and grazing area for riding which oversees a spring-fed pond.
Sprawling Quakertown estate features three bedrooms and six bathrooms
He bought an old house in Summit, New Jersey (pictured) for $2.9 million in 1999. He sold the house to his ex-wife for $1, with the house now valued at $4 million
Cramer previously owned a $2.9 million home with his ex-wife, Karen, in Summit, New Jersey. The couple bought the house in 1999, and after their divorce in 2009, Cramer sold the house to Karen for $1.
To reach his level of success, the host of Mad Money advised young people to be savvy with their money and to invest what they can, gradually.
He said that when he lived off his car, he put $100 into an index fund every month.
“I saved that money and it made me a millionaire,” he said. “If you have a few dollars to spend going out, then you have money to invest.
“Just stay consistent. Over time, equities have proven to be an incredible asset,” he added.