CNBC host and multi-millionaire Jim Cramer said the younger generation was broke because they spent too much on $14 margaritas from his restaurant and not enough on the stock market.
The Mad Money host, who is worth more than $100 million, said those in Generation Z living paycheck to paycheck were spending too much money on having fun rather than saving or investing it.
‘One of the problems that I see about Gen Z-ers is they’re not frugal enough,’ Cramer said. ‘They seem like they have a lot of money, even when they don’t have a lot of money.’
He said he came to the conclusion while out in his Brooklyn restaurant, the San Miguel Bar, where he claimed to have seen a young man buy five $14 margaritas for himself ‘as if [money] grew on a tree.’
‘On the one hand, you’re allowed to have all the pearls you want,’ Cramer said, ‘but on the other hand, you say, ‘I can’t invest, I have student loans.’ I think that’s counterintuitive.’
CNBC and Mad Money host Jim Cramer said Gen Z spends too much money on his $14 margaritas and not enough investing in the stock market
He said he watched one person buy five $14 margaritas at his Bar San Miguel (pictured) in Brooklyn, and said the young man should have used the money to invest in stocks
Cramer admitted that it might seem hypocritical of him to make the criticisms. He has a $3.4 million estate in Quakertown, Pennsylvania, listed under his name after moving there in 2021
Cramer’s comments came following a recent Deloitte survey, which polled 14,808 Gen Z-ers, finding that nearly half of those between 18 and 24 were living paycheck to paycheck.
Young Americans are also contending with heavy student debts, with a Bachelor’s degree carrying an average debt of $28,950, according to NerdWallet, as well as record high inflation, which is at the highest its been in more than 40 years.
Yet Cramer appeared indifferent to the plight of the students and young professionals.
‘People always say, ‘I have nothing to invest, so I can’t invest.’ I hear that from people in their 20s all the time,’ he said.
The millionaire also suggested that he had it rougher than most of the people who frequented his restaurant when he was their age.
‘I know you might say, ‘Oh, Cramer’s rich; I don’t want to hear his lecture,” he said. ‘But did you live in your car on the side of Interstate 5?’
Last year, Money, Inc. reported that Cramer had a network of more than $100 million, as the Mad Money host relocated from New Jersey to Quakertown, Pennsylvania.
The Quakertown home listed under his name is a sprawling three-bedroom, six bathroom, $3.4 million estate.
It also houses a large barn and pasture area for horse riding that oversees a spring-fed pond.
The sprawling Quakertown estate features a three-bedroom and six bathrooms
He purchased a previous home in Summit, New Jersey (pictured) for $2.9 million in 1999. He sold the home to his ex-wife for $1, with the home now valued at $4 million
Cramer previously owned a $2.9 million home with his ex-wife, Karen, in Summit, New Jersey. The couple purchased the home in 1999, and following their divorce in 2009, Cramer sold the home to Karen for $1.
To reach his level of success, the Mad Money host advised youngsters to be savvy with their money and invest whatever they can, gradually.
He said that when he was living out of his car, he was putting $100 into a stock index fund each month.
‘I put that money away, and it made me a millionaire,’ he said. ‘If you have a few bucks to spend going out, then you have money to invest.
“Just keep it consistent. Over time, stocks have been proven to be an unbelievable asset,’ he added.