CNBC host Jim Cramer says Gen Z is broke because they buy too many ‘$14 margaritas’
CNBC host and multi-millionaire Jim Cramer said the younger generation was broke because they were spending too much on its $14 margaritas and not enough on the stock market.
The Mad Money host, who is worth over $100 million, said that those in Generation Z who live paycheck to paycheck are spending too much money on pleasure rather than saving or investing it.
“One of the problems I see with Gen Zers is that they aren’t frugal enough,” Cramer said. “It seems like they have a lot of money, even if they don’t have a lot of money.”
He said he came to this conclusion while at his Brooklyn restaurant, the San Miguel Bar, where he claimed to have seen a young man buy himself five $14 margaritas “as if [money] grew on a tree.’
“On the one hand, you can have all the margaritas 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 is overspending on its $14 margaritas and not investing enough in the stock market
He said he saw a person buying 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 may seem hypocritical of him to criticize. He has a $3.4 million estate in Quakertown, Pennsylvania to his name after moving there in 2021
Cramer’s comments came after a recent Deloitte survey, which surveyed 14,808 Gen Zers, finding that nearly half of those ages 18 to 24 lived paycheck to paycheck.
Young Americans also struggle with heavy student debt, with a bachelor’s degree with an average debt of $28,950, according to NerdWallet, as well as record high inflation, which is the highest in more than 40 years.
Still, Cramer seemed indifferent to the fate of the students and young professionals.
“People always say, ‘I don’t have anything to invest, so I can’t invest.’ I hear that all the time from people in their twenties,” he said.
The millionaire also suggested that he had it harder than most of the people who frequented his restaurant when he was her age.
“I know you might say, ‘Oh, Cramer is rich; I don’t want to hear his lecture,” he said. “But did you live in your car on Interstate 5?”
Last year, Money, Inc. that Cramer had a network of more than $100 million when the Mad Money host moved from New Jersey to Quakertown, Pennsylvania.
The Quakertown home listed under his name is a sprawling three-bedroom, six-bathroom estate with a $3.4 million estate.
It also houses a large barn and horse riding pasture that oversees a spring-fed pond.
The sprawling Quakertown estate features three bedrooms and six bathrooms
He bought a previous home in Summit, New Jersey (pictured) for $2.9 million in 1999. He sold the house to his ex-wife for $1, and the house is 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 wise with their money and gradually invest what they can.
He said that when he lived out of his car, he put $100 each month into a stock index fund.
“I put that money aside and it made me a millionaire,” he said. “If you have a few dollars to spend going out, you have money to invest.
‘Just keep it consistent. Over time, stocks have proven to be an incredible asset,” he added.