Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
A study from Northwestern Mutual found that half of all adults now describe themselves as “financially secure,” a notable jump from 44% just a year ago.
Financial discipline is also trending up, with 53% of people now considering themselves disciplined planners, a steady climb back from a post-pandemic low.
But beneath this encouraging surface, a current of anxiety and desperation is pulling younger generations toward risky, speculative bets in a frantic attempt to catch up.
This is the central paradox of the 2026 Planning & Progress Study. Even as the country’s financial footing seems to be firming up, a significant number of young adults are embracing a kind of financial nihilism.
They feel so profoundly behind that they’re turning to high-risk instruments like cryptocurrency, sports betting, and prediction markets, not as a form of entertainment, but as a primary strategy for wealth creation.
“When people feel behind, they often look for shortcuts,” said John Roberts, Northwestern Mutual’s chief field officer, in the report. “But building financial security is rarely about cutting corners. It’s about consistency, discipline, and protection.”
He cautions that while these high-risk assets can be part of a portfolio, they should be treated as “fun money,” advising investors not to allocate more than they can afford to lose. The core of a financial plan, he argues, should remain focused on strategies proven to build and protect wealth over the long term.
Nearly a third of Gen Z adults are already invested in or are considering putting money into crypto and sports betting this year, a rate higher than any other generation.
The motivation isn’t just a youthful appetite for risk, it’s a direct response to their economic reality. Among those drawn to these speculative assets, 80% of Gen Z and 75% of Millennials say it’s because they feel financially behind and believe these tools offer a faster path to their goals than traditional methods.
They’re watching the goalposts for homeownership and retirement move further down the field and have concluded that the slow, steady path of traditional investing is a luxury they can’t afford. They feel they need a shortcut, and they’re willing to gamble to find it.
What that often misses is the drag that existing high-interest debt puts on any wealth-building strategy, whether traditional or speculative. Carrying $10,000 in credit card debt at 24% costs more than $2,000 a year in interest alone, money that cannot compound, cannot grow and cannot be bet on anything. For borrowers in that position, consolidating that debt into a lower-rate personal loan is the reset that makes any other financial move more effective.
