“Money Moves”: Jill Schlesinger’s Call for a New Financial Playbook

Schlesinger notes that the portion of median income required to cover a mortgage, taxes, insurance and PMI has risen from roughly 30 % five years ago to about 42 % today, driven by higher home prices, doubled mortgage rates and soaring insurance costs. She argues that for many young adults, especially in high-cost regions, renting can provide flexibility, liquidity and the opportunity to invest the rent-difference, which may yield better long-term outcomes than purchasing a home outright.

East Bay Times

The commentator stresses three foundational goals: (1) build an emergency fund equal to six-to-twelve months of expenses in a high-yield savings account, (2) capture any employer retirement-plan match, and (3) eliminate high-interest debt. She differentiates low-interest federal student or auto loans (4-5 %) from 22 % credit-card balances, warning that aggressive repayment of the former can sacrifice market growth. Responsible credit-card use—paying the full balance each month—helps establish credit history and offers consumer protections unavailable with debit cards.

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Schlesinger challenges two pervasive myths: that discretionary spending is the primary obstacle for younger generations, and that home ownership is always preferable to renting. She contends that these narratives ignore structural cost increases and that financial decisions should be based on individualized analysis rather than blanket rules.

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• “Nearly two decades ago, getting reliable financial advice meant finding someone you trusted and asking them directly.” — Jill Schlesinger, CFP

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• “Here are some tropes that need updating: Stop spending on nonsenseThe idea that younger generations are struggling because of discretionary spending is overblown.” — Jill Schlesinger, CFP

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• “Always buy — renting is throwing money awayTelling a 30-year-old, especially one who lives in a high-cost-of-living area, to save every dollar to buy a home ignores a brutal reality: home affordability has plunged.” — Jill Schlesinger, CFP

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• “Renting buys flexibility, liquidity, and freedom.” — Jill Schlesinger, CFP

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• “Don’t invest until you’re out of debtNot all debt is created equal.” — Jill Schlesinger, CFP

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