'You Don't Have To Convince Your Parents Of Anything' — Dave Ramsey Tells 22-Year-Old Earning $100K As Mom And Dad Push A $30K Car Debt – Benzinga
Simone asked "The Ramsey Show" how to respond after her parents pushed her to take on a $30,000 car loan.
She called from Buffalo, New York, saying she was graduating with a computer science degree and has accepted a job paying $100,000 a year, with a $10,000 signing bonus.
The 22-year-old added that she wanted to use the signing bonus to buy a less expensive car with cash, while her parents preferred that she finance a more expensive vehicle. She also asked how to use her income in a way that prepares her for the future.
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"You don't have to convince your parents of anything," personal finance expert Dave Ramsey said. He added that earning that level of income at her age places her in a position to make her own financial decisions and that adulthood changes how parental input applies.
Simone said she had not thought about the situation that way and acknowledged that her parents' opinions still influence her decisions.
Ramsey said this stage can be difficult for parents, as relationships change when children are fully grown. He encouraged Simone to remain respectful and appreciative while recognizing that her parents no longer make decisions on her behalf.
"It would be nice to have their approval, but sometimes they may choose to withhold that approval," Ramsey said.
Trending: Americans With a Financial Plan Can 4X Their Wealth — Get Your Personalized Plan from a CFP Pro
Simone said her parents had previously expected a different path for her, including career options that would have led to lower income levels. Ramsey backed her decision to pursue computer science and said independence does not require disrespecting family.
Returning to the car discussion, Ramsey said taking on a large auto loan early in a career can reduce flexibility, even with strong income. He supported Simone's plan to buy a modest car with cash and move up later if she chooses.
"I want her to just do it and then inform them later," co-host Ken Coleman said, addressing the timing of the decision.
See Also: Have $100k+ to invest? Charlie Munger says that's the toughest milestone — don't stall now. Get matched with a fiduciary advisor and keep building
Ramsey agreed, saying paying cash and avoiding car payments aligns with long-term financial stability. He added that earning a high salary does not require driving an expensive vehicle immediately.
"If you are very careful, if you're reasonably wise, you're going to be unbelievably wealthy," Ramsey said, outlining a basic approach to managing money that includes staying out of debt, building an emergency fund, and investing over time.
Read Next: Forget Flipping Houses—This Fund Lets You Invest in Home Equity Like Wall Street Does
Image: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
A newsletter built for market enthusiasts by market enthusiasts. Top stories, top movers, and trade ideas delivered to your inbox every weekday before and after the market closes.
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This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
She called from Buffalo, New York, saying she was graduating with a computer science degree and has accepted a job paying $100,000 a year, with a $10,000 signing bonus.
The 22-year-old added that she wanted to use the signing bonus to buy a less expensive car with cash, while her parents preferred that she finance a more expensive vehicle. She also asked how to use her income in a way that prepares her for the future.
Don't Miss:
"You don't have to convince your parents of anything," personal finance expert Dave Ramsey said. He added that earning that level of income at her age places her in a position to make her own financial decisions and that adulthood changes how parental input applies.
Simone said she had not thought about the situation that way and acknowledged that her parents' opinions still influence her decisions.
Ramsey said this stage can be difficult for parents, as relationships change when children are fully grown. He encouraged Simone to remain respectful and appreciative while recognizing that her parents no longer make decisions on her behalf.
"It would be nice to have their approval, but sometimes they may choose to withhold that approval," Ramsey said.
Trending: Americans With a Financial Plan Can 4X Their Wealth — Get Your Personalized Plan from a CFP Pro
Simone said her parents had previously expected a different path for her, including career options that would have led to lower income levels. Ramsey backed her decision to pursue computer science and said independence does not require disrespecting family.
Returning to the car discussion, Ramsey said taking on a large auto loan early in a career can reduce flexibility, even with strong income. He supported Simone's plan to buy a modest car with cash and move up later if she chooses.
"I want her to just do it and then inform them later," co-host Ken Coleman said, addressing the timing of the decision.
See Also: Have $100k+ to invest? Charlie Munger says that's the toughest milestone — don't stall now. Get matched with a fiduciary advisor and keep building
Ramsey agreed, saying paying cash and avoiding car payments aligns with long-term financial stability. He added that earning a high salary does not require driving an expensive vehicle immediately.
"If you are very careful, if you're reasonably wise, you're going to be unbelievably wealthy," Ramsey said, outlining a basic approach to managing money that includes staying out of debt, building an emergency fund, and investing over time.
Read Next: Forget Flipping Houses—This Fund Lets You Invest in Home Equity Like Wall Street Does
Image: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
A newsletter built for market enthusiasts by market enthusiasts. Top stories, top movers, and trade ideas delivered to your inbox every weekday before and after the market closes.
source
This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
