There’s one video that was making rounds on social media platforms a couple of years ago, which caught the attention of personal finance experts Dave Ramsey and Rachel Cruze during a past episode of “The Ramsey Show.”
The clip featured a father proudly filming his teenage daughter, claiming she was buying her first car using a loan and investing her savings into an Airbnb to cover the payments.
The Math And Morals Don't Add Up
“It just drips in arrogance,” Ramsey said after watching the clip, adding, “You need to take a shower after watching that.”
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Cruze, who received the clip from multiple followers, was stunned: “It’s terrible advice.”
In the video, the daughter explains she got a $15,000 car loan at 3.5% interest and plans to invest $7,000 of her savings in an Airbnb that she believes will bring in a 14% return. Her dad jumps in to call it “arbitrage.”
Ramsey wasn't impressed. “It’s called arbitrage," he said mockingly. “Which is Greek for ‘I’m stupid.'”
He also pointed out some glaring issues, like the fact that 15-year-olds cannot get a bank loan or that you can’t buy a property for $11,000.
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Why This Strategy Doesn't Build Real Wealth
Ramsey said none of the more than 10,000 millionaires they've interviewed built wealth by borrowing money for a car and investing it in an Airbnb as a teen. “Zero real millionaires do that. Zero. None,” he said.
According to Ramsey, these types of social media pitches rely on a string of unrealistic assumptions that fall apart under scrutiny. Even adults would struggle to get those exact returns consistently, let alone a teenager with no financial track record.
The show also took aim at the broader trend of self-proclaimed financial experts on TikTok and Instagram pushing risky strategies with flashy buzzwords. Ramsey criticized the growing perception that there are secret formulas or complex financial maneuvers that fast-track wealth.
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“There’s not a magic sauce,” Ramsey said. “You gotta live on less than you make. You have to invest steadily over a long period of time.”
Cruze added that the way these videos are framed can make it feel like regular people are missing out on some hidden system, but it's just a mirage. “They’re looking for a shortcut,” Ramsey added.
She also reminded listeners that while investing is important, it should come after financial basics are in place, like building an emergency fund, avoiding debt, and creating a long-term plan.
By the end, Ramsey summed up his frustration with a jab at the platform fueling the trend: “I’m having trouble finding intelligent life on TikTok.”
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