‘Financial Nihilism’ Driving Gen Z’s Interest in Gambling, Prediction Markets & Crypto, Study Says
Feeling financially “behind,” Americans, particularly younger generations, are turning to high-risk financial assets.
Faced with uncertainty, young Americans are turning to sports betting, prediction markets, and crypto to reach their long-term financial goals, according to Northwestern Mutual’s Planning & Progress Study.
Published on March 9, the report revealed that almost a third of Gen Z (ages 18 to 29) are risking money on these platforms — or considering doing so. Of those, eight out of ten believe such assets offer a “faster path to their goals than traditional methods.” Also disconcerting, among US adults investing or considering investing in these assets, 73% share that belief.
The annual survey, conducted by The Harris Poll, “explores Americans’ attitudes, behaviors, and perspectives across a broad set of issues impacting their long-term financial security.” This year’s results offer a glimpse into the mental state of Americans facing inflation, limited job opportunities, high housing costs, and substantial debt.
The Harris Poll surveyed 4,375 US adults between Jan. 5 and Jan. 21, 2026.
Summarizing the findings, Northwestern Mutual’s chief field officer John Roberts noted a growing sense of financial nihilism among those feeling most at risk:
Among a segment of those feeling financially insecure, a sense of financial nihilism is setting in. They’re effectively saying they haven’t saved enough and aren’t earning the returns they want in a long-term focused portfolio, so may as well swing for the fences and bet on things like, literally, whether Jesus is going to return before the end of 2026.”
No Shortcuts to Financial Wealth
More than half of Americans (52%) report recognizing a common financial blind spot: their emphasis on building wealth over protecting existing assets and managing risk. Among younger generations, the planning gap is more pronounced, affecting 57% of Gen Z and 62% of Millennials.
“When people feel behind, they often look for shortcuts,” said Roberts.
It’s a dangerous mentality, he cautioned.
… building financial security is rarely about cutting corners. It’s about consistency, discipline, and protection. A comprehensive plan helps people grow confidently without taking unnecessary risks. These high-risk assets can be fun to play with, but that’s why we recommend only spending ‘fun money’ on them. Don’t allocate more than you can afford to lose completely and focus your planning on strategies that have been proven to help people build and protect wealth over the long-term.”
Recent data posted on X shows most Polymarket traders, for example, are not profitable.
According to those stats, only about 32% of Polymarket traders have made any profit. Of those, approximately 73% earned $100 or less, and 92% gained no more than $1,000. In contrast, 67% of the platform’s traders lose more than they win, and 51% parted with $1,000 or less.
For all but the most successful traders (less than 1%), expecting to reach long-term financial goals this way is likely a fool’s errand.
Optimism Also on the Rise
Despite the specter of nihilism, the percentage of Americans feeling financially secure rose across generations, with Millennials and Gen X reporting the largest year-over-year gains.
While only 50% of Americans said they felt financially secure, that’s 6 percentage points higher than in the 2025 report. Among those with a financial advisor, 71% reported feeling secure, while 10% did not.
According to the survey, the percentage of Americans who self-identify as “disciplined” financial planners (53%) is on a two-year upswing. The recent upward trend follows a 2020 high of 65% that later dropped to a “record low” (45%) in 2024.
Even in a K-shaped economy rife with wealth disparities, Americans’ positivity and optimism about their own financial security are on the rise, Roberts said.
Many factors are at play, but an uptick in financial discipline is certainly having an impact. The best way to move from financial anxiety to confidence is by taking control, practicing good habits, and making sound decisions. There’s also nothing quite like the confidence that comes from a trusted professional telling you that you’re making wise financial choices. Having a trusted advisor isn’t just about the returns; it’s about reassurance.”
The optimism extends to home ownership, which the study found “remains central to Americans’ financial aspirations.”
Three-quarters of U.S. adults believe home ownership is “essential” to building wealth. The belief is strongest among those with high net worth ($1 million+ in investable assets) and those receiving advice from a financial advisor.
Likewise, non-homeowners reported feeling they have a better chance of eventually owning a home. Even Gen Z and Millennials saw upticks in housing-related optimism.
“Homeownership is the traditional path to living the American Dream,” aaid Roberts, “so it’s exciting to see younger people feeling more confidence that their dream will come true.”
Inflation Remains Top Concern
Overwhelmingly, participants said inflation (42%) is their main obstacle to financial security, rather than lack of savings (25%), personal debt (22%), or medical costs (22%).
According to the survey, more respondents expect the US economy to weaken in 2026 (45%) than improve (36%). More than half of adults (56%) expect prices to increase, with older adults exhibiting more pessimism than in last year’s results.
However, the study showed slight improvements in real-world impacts.
In 2026, 79% of Americans said they experienced higher prices in the grocery aisle over the last three months, down from 84% last year.
At the time of the survey, the biggest shift was in gas prices. This year, only 44% reported seeing higher gas prices, down 16 percentage points from last year.
The survey, though, came before the US and Israel’s strikes on Iran prompted gas prices to rise.
Despite a few hopeful glimmers, fewer Americans expect to increase their discretionary spending this year. Likewise, many Americans, particularly Gen Z and Millennials, are choosing to buy now, pay later, even for daily purchases.
Half of both groups (49%) said they plan to use ‘Buy Now, Pay Later’ for large purchases. Almost a third or more will use it for smaller purchases – 36% (Gen Z) and 32% (Millennials).
At the same time, 62% of survey respondents said they would rather pay down debt, compared to 38% who prioritize saving.
“‘Buy Now, Pay Later’ options can be a helpful budgeting tool – or a budgeting blind spot,” said Roberts.
“The difference is discipline. They can become risky when convenience outpaces good intentions. Like credit cards, they are best used as part of a plan, not as a reflex.”
Gambling Insider delivers the latest industry news, in-depth features, and operator reviews that you can trust. Our team combines rigorous editorial standards with decades of specialized expertise to ensure accuracy and fairness. We are committed to delivering clear, impartial, and dependable coverage across the global gambling sector.
