It is no secret that many young adults struggle to navigate the complexities of adulting, especially when it comes to managing their finances. The education system often fails to equip them with the necessary knowledge and skills to handle real-world financial challenges such as rent, income, and taxes. While some fortunate individuals receive guidance from their parents, it seems that this particular Gen Zer missed out on those crucial lessons.
In a bizarre TikTok video shared by user Caleb Hammer, we are introduced to a young woman who celebrated owing $4,000 on her credit card. This perplexing interaction left many scratching their heads, including Hammer himself. It appears that this young woman failed to grasp the basic concepts of credit and debt.
The story unfolds when her parents provided her with a credit card, generously giving her an $8,000 limit. Unfortunately, she had trouble distinguishing between her credit limit and the amount she would eventually have to repay. Upon receiving a letter from her credit card provider stating that she had incurred $4,000 of debt and reached half of her credit limit, she excitedly reached out to her mother to celebrate.
Now, you might be wondering why she thought this debt was something to be happy about. Well, it turns out she believed that accumulating debt was the purpose of having a credit card, unaware that the money would eventually need to be repaid. Perhaps she thought it was like having a free gift card with $8,000 to splurge. Despite attempts by Caleb Hammer to clarify her misunderstanding, the young woman could not explain why she thought debt was a positive thing.
If you expected her to face the consequences of her error, think again. When her parents realized that she needed to pay off the $4,000 immediately, they decided to confiscate the card and take on the responsibility of paying off their daughter’s debt themselves. Their reasoning? They believed she wouldn’t be able to pay it off in time. They even allowed her to continue using the card for unexpected expenses and caring for her pets. Unfortunately, it seems that the gravity of the situation has yet to sink in.
Caleb Hammer tried to reason with her, explaining that her income was insufficient to support herself. He highlighted that 70% of her income went towards rent alone, leaving her unable to cover her bills, food expenses, and, of course, her credit card bill every month. However, her response was simply, ‘girl math’.
Understandably, this uncomfortable video angered many viewers online. They criticized the young woman for her nonchalant attitude towards debt and money, as well as her parents for enabling her irresponsible behavior. One commenter pointed out that the entire situation was the parents’ fault for giving her a credit card without properly explaining its implications. Another expressed confusion, wondering how the woman could be so clueless, questioning whether she believed the credit card was a gift card with $4,000 already loaded onto it by her parents.
This story serves as a reminder of the importance of financial literacy and responsible money management. While it may be tempting to shield our loved ones from the harsh realities of finances, it is crucial to educate them about the potential pitfalls of debt and the importance of living within one’s means. Only then can we hope to avoid celebratory moments like this young woman’s debt revelation.
