‘Financial Nihilism’ Is Pushing Young Americans Toward Crypto, Sports Betting and More

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Investing Alternative Investments Share Share Close Mail Page URL https://money.com/financial-nihilism-gen-z/ Link copied! 'Financial Nihilism' Is Pushing Young Americans Toward Crypto, Sports Betting and More By: Adam Hardy Adam Hardy Lead data journalist | Joined October 2021 Adam Hardy is a lead data journalist at Money, where he frequently reports on financial barriers that affect low-income Americans. Adam’s work has also appeared in Business Insider, Forbes, Nasdaq, The Penny Hoarder, Yahoo! Finance and many other outlets. Has also written: Trump Accounts for Kids: Who Qualifies for the 'Free Money' and How to Sign Up Netflix Stock Split: Shares Are About to Get 10 Times Cheaper Inflation Upside: I Bond Rates Are Back Above 4% Forget Stock Picking: 'VOO and Chill' Is Good Enough for This Money Writer Will the Fed Lower Rates in September?

Experts Say Weak Jobs Report 'Cements' a Cut See full bio Editor: Katherine Peach Katherine Peach Associate Editor | Joined January 2025 Katherine Peach is an associate editor with a focus on news and email at Money. She didn’t always intend to write about money. She’s a classically trained pianist who dreamed of becoming an archaeologist. However, in 2007 Katherine began working in financial publishing as an editor for Agora Inc. (Apparently, unearthing ideas about improving your personal finances isn’t such a bad career alternative!) Katherine’s writing and editing work has been featured in Investing Daily, Clever, Investor Junkie, The Palm Beach Letter, Truth & Plenty, Independence Monthly, NICHE, AmericanStyle, AntiqueWeek, Millennial Money, Money Done Right, TheStreet, Sure Dividend and many others. Katherine holds a Bachelor of Arts in Ancient Studies with concentrations in Archaeology and Ancient Languages and a minor in Literature from the University of Maryland, Baltimore County. She is a member of Phi Beta Kappa. Has also written: Stamp Prices Won't Rise This Month, but These USPS Shipping Costs Will Debit Card Fraud Is on the Rise. Here's What I Did When It Happened to Me New Bill Aims to 'Actually' End Taxes on Social Security Inflation's Silver Lining: The Social Security COLA Estimate for 2026 Is Up Social Security Recipients Are on Track for a 2.5% Raise Next Year See full bio Published: Mar 10, 2026 8:30 a.m. EST 4 min read Money is not a client of any investment adviser featured on this page. The information provided on this page is for educational purposes only and is not intended as investment advice. Money does not offer advisory services. Money; Getty Images After five years of persistent, elevated inflation, new data shows that so-called “financial nihilism” has taken root among young Americans. The term reflects the widespread feeling of disenchantment among Gen Zers (born between 1997 and 2012) and millennials (born 1981 to 1996), especially when it comes to checking off key life milestones related to the American Dream. Ads by Money. We may be compensated if you click this ad.AdSave time & stress — Get expert financial peace of mindGet StartedConnect with a financial advisor tailored to your needs Free 30-minute consultation Company does not charge you any fees Wide range of educational material available Get StartedAdvisory fee starting as low as 0.30%* Advisors help with tailored planning to fit your unique goals Start your advisor journey with just $50,000 Clear and transparent communication about fees Get StartedBest for Hands-off Investors Needing Expert Guidance Personalized investment guidance tailored to financial goals. Helps with portfolio diversification and tax-efficient strategies. Provides market insights and risk management strategies. Typically charges a fee based on assets managed or a flat rate Get StartedKnow your portfolio inside and out with intuitive, yet powerful tools Build custom screens using more than 200 unique data points Cut out the guesswork with powerful ratings and actionable analysis Never miss a beat with notifications on investments you care about Get StartedFinancial plans tailored to individual needs and goals Flat-fee model with no commisions or hidden fees Experienced advisors with a strong background in finance Money back guarantee policy When saving for a down payment or retirement feels futile, many young people turn instead to risky strategies involving cryptocurrencies, meme stocks and sports betting to try to get ahead, according to Northwestern Mutual’s annual Planning and Progress study released Monday. “When people feel behind, they often look for shortcuts," John Roberts, Northwestern Mutual's chief field officer, said in the report. "But building financial security is rarely about cutting corners. It's about consistency, discipline and protection.” Economic woes fuel financial nihilism Northwestern Mutual’s study cites inflation and economic uncertainty as tinder for the financial nihilism fire. The study found that more Americans (45%) expect the economy to worsen this year than those who expect it to improve (36%), and nearly 6 in 10 respondents say they believe inflation will continue to rise in 2026. Overall, inflation is “overwhelmingly” cited as the No. 1 obstacle to achieving financial security, Northwestern Mutual says. And while these economic issues are felt across generations, they particularly affect younger adults. For instance, 73% of Americans who feel financially behind say high-risk, speculative investments can help them reach their financial goals more effectively than traditional methods. The younger the respondent, the more likely they are to agree with that mindset: 80% of Gen Z, 75% of millennials, 66% of Gen X (born 1965 to 1980) and 51% of baby boomers (born 1946 to 1964).

Economist Kyla Scanlon — a Gen Zer known for coining the popular economic term “vibecession” — explained in a recent essay for the Wall Street Journal that younger adults are searching for returns that the traditional job or stock market isn’t giving them. “Young adults aren’t confused or bamboozled by the risks they’re taking. They understand them,” she wrote. “They’re responding to an economy where the usual advice no longer lines up cleanly with outcomes.” The job market is also particularly tough on younger workers, which can exacerbate the trend. The unemployment rate for young workers between 22 and 27 was nearly 8% as of December, according to the latest data from the New York Federal Reserve. For recent college graduates of the same age, the unemployment rate was 5.6%. Given that most Americans’ exposure to the stock market comes from retirement accounts through the workplace, a high youth unemployment rate acts to bar them from the markets — and push them into riskier investments. Last year, an investing study from YouGov found that Gen Zers are four times more likely to own crypto than a retirement account.

For Dinon Hughes, a Gen Z financial planner, it makes sense. He previously told Money that he sees these trends playing out among his clients and peers alike. “With that foundation, which do you think a 20-something person is more likely to do on their own,” he said — open an individual retirement account or “make a couple quick bucks off crypto?” Ads by Money. We may be compensated if you click this ad.AdDon't overpay for Car Insurance. Compare rates today!Save up to $793 a yearGet Started More from Money: What's Happening with SAVE? 3 Updates for Student Loan Borrowers as Legal Limbo Continues Trump's 'Federal 401(k)' Plan Promises a $1,000 Match. Here's How That Might Work Think Financial Planners Are 'Only for the Wealthy'? Here's Why That's a Myth SHOWHIDEAds by Money. We may be compensated if you click this ad.AdProtect your vehicle with affordable Car Insurance.View Rates