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Betting on long shots instead of building slowly
A growing number of young Americans are turning to sports betting, prediction markets and crypto as a route to financial security — bypassing traditional savings and investment strategies entirely. That is one of the key findings from Northwestern Mutual’s 2026 Planning & Progress Study, which surveyed 4,375 US adults in January and paints a striking picture of generational financial anxiety.
Almost a third of Gen Z adults — those aged 18 to 29 — are already risking money on these platforms or actively considering doing so. Of that group, eight in ten believe these assets offer a faster path to their financial goals than conventional methods. Among all US adults considering such assets, 73% share that view.
Financial nihilism takes hold
Northwestern Mutual’s chief field officer John Roberts put a name to the trend: financial nihilism. For those feeling most economically exposed — squeezed by inflation, high housing costs and limited job prospects — the logic has become: if traditional methods aren’t working, why not swing for the fences?
The data backs up the concern. Recent figures show that only around 32% of Polymarket traders have turned any profit at all. Of those, 73% earned $100 or less, and 92% made no more than $1,000. Meanwhile, 67% of traders on the platform lose more than they win. For all but the most exceptional traders, prediction markets are a poor substitute for a financial plan.
Optimism still exists — with the right support
Despite the worrying trends, the study also found reasons for cautious optimism. The share of Americans feeling financially secure rose six percentage points year-on-year to 50%, with the gains most pronounced among Millennials and Gen X. Among those working with a financial advisor, 71% reported feeling secure.
Home ownership remains central to the American financial dream, with three-quarters of adults viewing it as essential to building wealth — and younger generations reporting improved confidence that they will eventually get there.
Inflation still the dominant fear
Inflation remains the single biggest obstacle to financial security, cited by 42% of respondents — well ahead of lack of savings (25%) or personal debt (22%). More Americans expect the economy to weaken in 2026 than improve, and the majority anticipate prices continuing to rise. The survey was conducted before the US and Israeli strikes on Iran pushed fuel prices higher, suggesting sentiment may have since deteriorated further.
