Financial coach and "The Ramsey Show" co-host Rachel Cruze warned that young adults, especially men in their 20s, are putting their financial futures at risk by chasing quick wealth through sports betting, cryptocurrency and risky real estate moves.
Cruze told Fox Business that the growing obsession with fast money is one of the most common financial mistakes she sees among younger Americans, saying many are prioritizing instant gratification over long-term wealth building.
"One mistake that we see young adults making constantly… is online gambling or quick wins to wealth building," Cruze said. "Things like crypto or getting into real estate when they shouldn’t."
Cruze singled out sports betting as particularly dangerous.
"It is usually guys in their 20s that are doing this," she said. "You’re throwing your money away to sports betting… It really is taking down a generation economically."
Sports Betting Boom Raises Concerns
Cruze’s warning comes as sports gambling continues to surge across the U.S.
Americans wagered more than $165 billion on sports last year, according to data cited by investor Anthony Pompliano and Creative Planning chief market strategist Charlie Bilello. Bilello noted Americans spent more on sports betting than on movies, books, concerts and sports tickets combined.
Major sportsbook operators include DraftKings Inc (NASDAQ:DKNG), Flutter Entertainment plc (NYSE:FLUT), parent of FanDuel, MGM Resorts International (NYSE:MGM) and Caesars Entertainment Inc (NASDAQ:CZR)
Legendary investor Warren Buffett has also criticized the industry, calling sports betting "a tax on stupidity" and warning against businesses that "make a sucker out of people."
The Social Media Trap
Cruze said social media is amplifying the problem by creating unrealistic expectations around wealth, careers and lifestyle.
Platforms such as TikTok constantly expose younger users to influencers promoting crypto wins, real estate flips and luxury lifestyles.
"If anything seems too good to be true, it probably is," Cruze said.
Instead, she said real wealth building remains slow and unglamorous: living below one’s means, paying off debt and investing consistently over time.
Cruze said the key is ignoring comparisons and focusing on personal financial reality.
"You really have to put the blinders on and focus on your life, your career, your money situation," she said.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
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