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Between January 5 and 21, 2026, Northwestern Mutual and Harris Poll surveyed 4,375 adults in the U.S. and found a surprising change in how people of different generations invest. Almost a third of Gen Z respondents aged 18 to 29 have either engaged in or are seriously thinking about investing in cryptocurrency, prediction markets, or sports betting as a strategy to get their finances in order. The results show that more and more young adults feel that traditional investing options are too slow to keep up with the reality of today’s economy, especially when earnings are stagnant, housing expenses are rising, and student debt is piling up.
The survey found that 80% of Gen Z respondents who think they are “behind” financially think that speculative investments are the fastest way to reach their goals. For Millennials who are under the same kind of stress, the number is 75%. In 2026, 32% of Gen Z and 35% of Millennials said they had previously invested in crypto or were thinking about doing so. These statistics are much higher than those for prior generations. Only 18% of Gen X and 9% of Baby Boomers showed the same level of interest.
Financial Nihilism: When Normal Ways of Making Money Don’t Work Anymore
Researchers at Northwestern Mutual call the trend “financial nihilism,” which means that many young individuals no longer think that the traditional ways to acquire wealth (steady career development, homeownership, and 401(k) contributions) are enough or achievable. Many people are resorting to high-risk, high-reward investments in quest of faster results because they are facing delayed milestones like homeownership stretched into their 40s, student loans that last for decades, and pay growth that is behind inflation.
This way of thinking has naturally led to crypto, sports betting, meme stocks, and prediction markets. These assets promise (and sometimes deliver) huge returns in months or even weeks, unlike index funds or savings accounts that grow slowly over decades. The survey indicated that Gen Z is almost four times more likely than older generations to see risky investments as a good way to get back on track with their finances.
It’s interesting that there were also variances between men and women. Women were about half as likely as men to say they were interested in crypto, options, meme stocks, or prediction markets. The survey didn’t go into the reasons behind this discrepancy, but it might be because people have different levels of risk tolerance, have been socialised with money, or have been around crypto communities.
Economic Forces Causing the Change
The macroeconomic situation has a big effect on the survey results. In 2025, the U.S. job market grew the least outside of recessions since 2003. In the fourth quarter of 2025, the rate of those who were late on their credit cards was the highest it has been since 2017. For younger groups, it has become much harder to afford a home because median home prices are still rising faster than wages.
In this light, it becomes evident why investments with asymmetric upside are so appealing. Bitcoin has gone through several cycles of 10x or more since 2010, even though it is very volatile. People can wager on real-world events like election results, Fed decisions, and sports events on prediction markets like Polymarket. These bets can pay out a lot of money. Most U.S. states now allow sports betting, and it has become very popular with younger people.
Lemon’s research “State of the Crypto Industry in Latin America 2025” gives an example from the region: in Argentina, where inflation and currency regulations are a constant problem, the number of crypto users has quadrupled since 2021. In other places of the U.S., younger folks are also adopting things out of need because earnings aren’t going up and expenditures are going up.
Prediction markets and betting on sports are becoming more popular
The survey found that 32% of Gen Z respondents are either already using or thinking about using prediction markets and sports betting. This is far higher than older groups. Polymarket, Kalshi, and DraftKings are just a few of the platforms that have witnessed huge growth among users under 30. These consumers regard these marketplaces as both fun and risky investments.
Prediction markets are especially interesting because they let people make money off of what they know or guess about what will happen in the future. When you get it right, contracts based on Fed rate decisions, Oscar winners, or political results can pay out big. Because basic bets only have two possible outcomes (win or loss), they are also easier for the mind to understand than complicated derivatives.
Since most U.S. states made sports betting legal, it has followed a similar path. Because Gen Z is used to mobile-first experiences and small transactions, sites like FanDuel and BetMGM are obvious places for people to bet on things.
Wider Effects on Financial Services and Rules
The Northwestern Mutual results have significant ramifications for financial counsellors, regulators, and product developers:
- Financial advisors — Traditional advice models focused on long-term, low-volatility strategies may need to adapt. Younger clients increasingly demand exposure to higher-upside assets, even if accompanied by greater risk.
- Regulators — The convergence of crypto, prediction markets, and sports betting under the speculative umbrella raises questions about consumer protection, gambling addiction safeguards, and market integrity. The CFTC and SEC continue to grapple with how to classify and oversee prediction markets.
- Product innovation — Banks and fintechs may need to offer regulated products that capture some of the upside appeal of crypto and prediction markets without crossing into unregulated territory. Yield-bearing stablecoins, tokenized real-world assets, and structured products are likely areas of focus
The difference in speculative engagement between men and women is also worth looking into. If women keep not being interested in high-risk assets, it could make the gap between rich and poor even bigger in the long run. This is unless focused education and product design fix the problems that are keeping them from doing so.
Conclusion
The Northwestern Mutual survey makes it clear: many Gen Z and Millennials feel like traditional ways to build wealth are hindered or too sluggish. In reaction, a lot of people are turning to bitcoin, prediction markets, and sports betting. Not because they are greedy, but because they think these are the only legitimate ways to catch up.
We don’t know yet if this change will be good or bad. Speculative assets can give you gains that change your life, but they can also cost you a lot of money. Younger generations are definitely handling money differently. They are less patient, more willing to take risks, and more comfortable with digital-first, high-volatility products.
Financial institutions who understand this and make changes to their services—like providing regulated access to upside potential with the right protections—will be able to get a bigger share of the next generation’s wealth. People who don’t pay attention to it could miss out.
The survey shows that the conventional standards for getting rich are being changed, not because people are being careless, but because they have to.
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