TLDR
- Nearly a third of Gen Z is using or considering crypto, sports betting, and prediction markets to reach financial goals, per Northwestern Mutual’s 2026 study.
- 80% of Gen Z investors in these assets believe they offer a faster path to wealth than traditional methods.
- Only 32% of Polymarket traders have turned any profit, with 92% of winners earning $1,000 or less.
- Despite rising financial nihilism, the share of Americans feeling financially secure rose 6 points year-over-year to 50%.
- Inflation remains the top barrier to financial security for 42% of Americans, ahead of lack of savings and personal debt.
Young Americans are increasingly turning to crypto, sports betting, and prediction markets because they feel financially behind, according to a new study from Northwestern Mutual.
The company’s 2026 Planning & Progress Study, published March 9, found that nearly one in three Gen Z adults are either using or considering these high-risk financial tools.
The survey was conducted by The Harris Poll between January 5 and January 21, 2026. It included 4,375 US adults.
Among Gen Z respondents investing or considering investing in these assets, 80% said they believe such platforms offer a faster route to their goals than traditional methods. Across all US adults in that group, the figure was 73%.
Northwestern Mutual’s chief field officer John Roberts described a growing sense of “financial nihilism” among those feeling most at risk.
Roberts said some people feel they haven’t saved enough and aren’t earning the returns they want. So they decide to “swing for the fences,” he said, including betting on things like whether Jesus will return before the end of 2026 on prediction markets.
Prediction Market Data Paints a Grim Picture
Data from Polymarket suggests the odds are stacked against most traders on these platforms.
Only about 32% of Polymarket traders have made any profit at all. Of those who did profit, roughly 73% earned $100 or less.
On the losing side, 67% of Polymarket traders lose more than they win. For all but the top 1% of traders, reaching long-term financial goals through prediction markets appears unlikely.
Roberts warned against looking for shortcuts. He said building financial security is about consistency, discipline, and protection, not cutting corners.
He recommended only using “fun money” on high-risk assets and never allocating more than you can afford to lose completely.
More than half of Americans said they recognize a blind spot in their finances — focusing too much on building wealth rather than protecting what they already have. That gap is wider among younger people, affecting 57% of Gen Z and 62% of Millennials.
Financial Optimism and Inflation Concerns Exist Side by Side
Despite the nihilism trend, the share of Americans feeling financially secure rose to 50%, up 6 percentage points from 2025. Among those with a financial advisor, 71% reported feeling secure.
The percentage of Americans calling themselves “disciplined” financial planners climbed to 53%, continuing a two-year recovery from a record low of 45% in 2024.
Homeownership remains a key goal. Three-quarters of US adults said owning a home is essential to building wealth. Even Gen Z and Millennials reported more optimism about eventually buying a home.
Still, inflation is the top concern. Some 42% of respondents named it their biggest obstacle to financial security, ahead of lack of savings at 25% and personal debt at 22%.
More respondents expect the US economy to weaken in 2026 (45%) than improve (36%). Over half of adults expect prices to keep rising.
There were some improvements in day-to-day costs. In 2026, 79% said they saw higher grocery prices in the past three months, down from 84% last year. Only 44% reported higher gas prices, down 16 points from the prior year.
The survey was completed before US and Israeli strikes on Iran caused gas prices to rise.
Nearly half of Gen Z and Millennials said they plan to use Buy Now, Pay Later services for large purchases. A third or more said they would use it for smaller everyday items.
