4 Outdated Advice Millennials and Gen Z Hate
- Vivian Tu teaches her 1 million millennial and Gen-Z TikTok followers about financial literacy.
- She says the advice to get a second job or stop eating out doesn’t work for young people the way it did for their parents.
- Millennials and Gen Z are often told that all debt is bad, but Tu says it depends on the context.
- Read more stories from Personal Finance Insider.
After making her first million on Wall Street, 27-year-old Vivian Tu (@yourrichbff on TikTok) realized that even the highest-earning marketers lacked the basic personal finance skills that would help them manage sustainable wealth.
Tu started creating TikToks to share basic advice on personal finance and investing, but quickly realized that young people face different economic challenges than previous generations.
“Personal finance, for a long time, has been very pale and very masculine,” Tu shares with Insider when asked why traditional personal finance advice just doesn’t reach Millennials and Gen Z. makes a point of talking to her followers like she’s their “wealthy best friend,” with relevant stories and perspectives that young people identify with.
Here are four outdated pieces of advice Millennials and Gen Z don’t listen to anymore, according to Tu.
1. Get a second job to pay off your debts
You say older generations often forget that the cost of living is “exponentially higher” for Millennials and Gen Z, and that the advice to get a second job won’t solve larger systemic issues.
“When my parents went to college, tuition cost a banana, a quarter and a handshake,” she jokes. “But now to go to college, at 17 or 18, you have to sign a binding paper that says, ‘I’m good for six figures.'”
The advice to “get a second job” falls on deaf ears when young people get tired of seeing how expensive it is to do the same things their parents did when they were young.
2. Stop eating out to save money
“I to hate this advice,” Tu admits. “I think older generations have peddled this advice that if you work hard, if you do all the right things, you will achieve the American Dream. But the American dream has changed.”
Along the same lines as advice on getting a second job, young people hate being told to stop eating out to save money. Although some millennials and Gen Zers are cutting back on dining out, they still prefer to keep a realistic amount of cash aside to eat out with their friends and just enjoy their lives.
3. Stick to your full-time job
Millennials and Generation Z are the generations that pioneered the Great Quit, the movement that caused workers in all sectors to quit their jobs and demand more pay, more benefits and a better processing.
Unlike the more conservative advice of older generations, The Great Resignation actually creates the perfect climate for negotiating a higher salary or applying to another company that can offer more money for the exact same job description.
“Being loyal doesn’t pay,” Tu explains. “If you stay too long at your job, you could lose hundreds of thousands of dollars because they know you won’t leave. You can only save what you earn, but you can always increase what you earn. . “
4. All debt is bad
Since younger generations are often burdened with student debt, they are often told that all types of debt must be repaid immediately, or that all types of debt should be totally avoided. You argue that we need to start normalizing the debt.
Certain types of debt, like student loan debt and credit card debt, can keep you from reaching your financial goals if you ignore them.
But mortgages or business loans, on the other hand, can be beneficial in building the life you want. “Even though the rich can afford a house with cash, they still get mortgages,” she explains. With mortgage rates between 2% and 4%, Tu says the wealthy will pay as little upfront as possible for the home, then use the rest of the money to invest in the market.
“When we lend money to the poor, we call it debt,” Tu says. “When we lend money to wealthy people, we call it leverage. Debt is not morally good or bad. Just like an investment account or a savings account, debt is a tool , and young people must learn to use it.”