Personal finance advice is not one-size-fits-all. Here’s why.

This makes me wonder: Are we putting too much pressure on people, fearing they will fail financially if they don’t reach certain financial goals soon?

The Pew Research Center report drew a lot of attention to how young people today are lagging behind on five metrics that are often cited as adult standards.

Analysis of Census Bureau data reveals: Pew They found that 21-year-olds were less likely than young people 40 years ago to be in full-time employment, married, financially independent, living alone, or to have children, with financial independence defined as earning more than 150% of the poverty line.

About 68% of 25-year-olds in 2021 do not live with their parents, compared with 84% in 1980, according to the Pew Research Center.

I’m talking about a column I wrote about financial advice for graduates. I received a lot of feedback from readers, some of whom disagreed with some of my advice, like paying off student loans before investing for retirement and not rushing into buying a home.

Here is my response to those who have challenged my teaching:

I said, “Don’t listen to what “they” say in the collective.”

People will tell you that renting is a waste of money, but that’s not true.

Comment: “Buy it as soon as you can and rent the room out to a friend,” one reader wrote.

What if your friend suddenly moves away? Or maybe you get laid off, the last person hired being the first to be fired? Like many things in personal finance, this is about your personal financial situation.

A Washington Post analysis of Bureau of Labor Statistics data found that Gen Zers, ages 12 to 27, are disproportionately struggling with rising consumer prices, housing costs, auto insurance, and large student loan balances.

So the math doesn’t necessarily favor homebuying, especially for young people who haven’t had time to save up enough cash to weather an economic downturn or cover major home maintenance costs.

I’ve been in this business for a long time. I work directly with a lot of people, which gives me an up-close look at how people of all income levels and ages handle money. Just because something works on paper doesn’t mean it will work in real life.

Another person echoed my sentiments, writing, “There are so many unknowns early in your career, like moving for work or grad school, or meeting that special someone. [who] It also works the other way around. Our financial advisor advised our son, who is in his 20s, to wait until he knows he’ll be stuck in one place for five to seven years, or until he’s married.”

I said, “Yes, young people should invest and have a chance to beat inflation. But if you’re going to graduate from college with debt, deal with that first. There’s still time to invest.”

Comment: “Putting some money into a retirement account (yes, an “investment”) at a young age is likely to be a very wise financial decision, especially if your employer contributions are substantial.”

I agree that in some cases it makes sense to set aside enough money to receive matching assistance from your employer, but for those graduating from college with a lot of debt that could take decades to pay off, it’s better to eliminate that debt sooner, before other obligations eat into student loan repayments.

Here’s what I witness on a regular basis:

Many recent college graduates don’t focus on paying off their student loans, instead taking advantage of forbearance programs to put a pause on their debt payments.

But as your income improves, you continue to put off paying off your debt. Then you have kids, buy a house, live as if you had no debt, take vacations, and live beyond your means. The debt continues to grow as interest is added to the principal.

Now in their 40s and 50s, they are panicking about paying off their debts before they retire.

By the way, the Secure a Strong Retirement Act of 2022 (Secure 2.0) will allow employers to choose to contribute to employees’ retirement accounts based on student loan repayments. This perk would allow employees to focus on paying off their debts without missing out on matching contributions.

I said, “It’s not helpful to use adjectives to describe debt. Debt is just debt, and when it becomes overused and oppressive, it can become all-encompassingly destructive.”

Comment: “Bad debt is debt that has a negative end result, like buying expensive shoes on a credit card and never paying them off. Good debt is debt that has a positive end result, like getting a degree that gets you a good job that far exceeds the amount of your debt, or your home increasing in value so you have a place to live and a better lifestyle.”

Many students end up with so much debt that they never get a degree. Or they pay a lot of money to get a master’s degree, but their income doesn’t increase, leaving them with debt they can’t repay for decades. Remember the Great Recession and the housing crisis?

Behavior needs to be taken into account when giving advice, and I am against characterizing loans as good or bad in the hope that it will give people who need to pause before taking on debt.

I write for the general public, and if I told you that a mortgage is “good” debt, some people who shouldn’t buy a home will only see the positives of homeownership. They won’t calculate that a mortgage leaves you with no room to save for retirement or an emergency fund.

I agree with this comment: “I prefer the term ‘necessary debt’ to good or bad. What is necessary is worth careful consideration.”

At the very least, the discussion of my advice has helped one young person.

“From my perspective, it’s useful to hear the range of perspectives people have on such a hot topic,” a 28-year-old DC reader said in an email. “I’ve always thought of personal finance as very straight-forward, as if there was only one right way to do things. But there are tons of lessons about what might not be the best idea. Finances aren’t always that straight-forward.”

For more timeless personal finance advice, order Money Milestones by Michelle Singletary.