Kevin O’Leary Urges Gen Z to Rethink Spending Habits

NEW YORK, NY — Investor Kevin O'Leary, known as a star on ABC’s Shark Tank, recently voiced concerns about the financial habits of Generation Z. During an interview, O’Leary highlighted the trend of spending on pricey lunches instead of saving and investing for retirement.

“I can’t stand when I see kids making $70,000 a year spending $28 for lunch. I mean, that’s just stupid,” O’Leary stated while speaking with host Steven Bartlett. He urged young people to consider how that money could benefit their future if invested in an index fund earning 8% to 10% per year.

He elaborated on a scenario where a young person, by investing just $28 weekly—the cost of one upscale lunch—could accumulate nearly $800,000 by the time they retire in 50 years. O’Leary emphasized that these small daily expenses, over time, represent lost opportunities for wealth growth.

This advice comes at a critical moment, as inflation and living costs rise, affecting younger generations significantly. Many millennials and Gen Zers find themselves in urban settings filled with expensive options that contribute to their spending habits, which O’Leary describes as “death by a thousand cuts.”

Surveys indicate that millennials alone can spend as much as $5,000 annually on coffee alone—a financial burden that O’Leary calls dangerous. His solution involves simple lifestyle changes: brewing coffee at home, preparing lunch, and funneling those savings into investments.

O’Leary firmly believes that these choices are not mere steps towards frugality but essential strategies for ensuring long-term financial security. “One of my rules is never outspend yourself in a 30- or 60-day cycle, ever. I don’t have any debt,” he stated.

He also recommends tracking income and expenses over three months to achieve a clearer understanding of financial health. O’Leary warns against emotional spending, which he believes often leads to poor financial decisions.

O’Leary’s discussion extends to aspiring entrepreneurs, stressing that projecting confidence and clear communication are vital for success. “You need to articulate your idea in 90 seconds or less,” he advised

While some critics question the feasibility of his recommendations amidst burdens like student debt and stagnant wages, O’Leary maintains that cultivating saving habits will prepare younger Americans for the future. “Be smart with spending,” he concluded. “A person should not let emotional impulse lock them into long-term financial baggage.”

Ultimately, his message resonates: prioritizing investments today might ensure a secure tomorrow for the youth.