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.
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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.
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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.
