If you’ve seen this clip of Glennda Baker on the Byron Lazine Podcast, you know there have been a lot of mixed reactions about the advice:

In the clip, Baker talks about how buying a house for your child is a wise investment, based on the thought that in 16 years, homes will be unaffordable for first-time homebuyers.

With over 8 million views on Instagram and 6.8 million views on TikTok, everyone has been weighing in on the clip.  

And last week, hosts of The Ramsey Show shared their thoughts

The Ramsey Show Reacts

Someone on The Ramsey Show got wind of the now-viral clip, and hosts Ken Coleman and Rachel Cruze reacted to the video. Here’s what they have to say about buying your kid a house now, in case they can’t afford one later. 

Reasons The Ramsey Show Disagrees

Coleman stated the clip offers incomplete advice (as all clips do). He started the reaction with three points he disagreed with. 

Coleman believes the line, “Your daughter won’t be able to buy a house,” is both exaggerated and untrue. He stated that while Baker is making a point, it plays into people’s fears.

Next, Coleman talks about what buying a second home means for the typical American family. For most, this would mean taking out a second mortgage, which goes against the Ramsey way of living debt free. 

Finally, Coleman and Cruze both state the 529 plan is an investment that can be used in multiple ways, and shouldn’t be dismissed as a means to invest in your child’s future. 

Reasons The Ramsey Show Agrees

While Coleman had a lot he disagreed on, he did have a caveat.

For homeowners who are currently debt-free and can put a sizeable down payment on a second home, it’s an option to consider. In the context of the clip, buying a home for a child rather than funding their college is what he called an “interesting” idea—as long as you are financially responsible.

Coleman stressed his point of being able to put down at least 20% on a second mortgage, which may be more than the amount parents plan to put toward their child’s college fund.

In that situation, it is a very interesting idea because college has increasingly got more expensive and less relevant. That is true. So you’re giving your kids some options to where they could cash flow their way through college.

Ken Coleman

Coleman closes by stating he does not endorse the idea, but, given the financial ability, it’s not a horrible investment.

Final Takeaways

Financial planning is very personal and one that should always be researched thoroughly. As the hosts of The Ramsey Show state, social media clips only give a snapshot of information. It’s up to you to dive into your options and determine what is best for your future.

When working with clients, the same holds true. Provide as much information as possible, and encourage people to continue their own research so they are confident in their decisions.

Finally, when it comes to social media—use your content to your advantage! Find short clips from your longer podcasts or videos that you know will get conversations going. This is what creates engagement and virality.