A significant number of young Americans, feeling financially challenged, are increasingly investing in high-risk financial assets. According to the latest Planning & Progress Study by Northwestern Mutual, many are turning to sports betting, prediction markets, and cryptocurrencies in hopes of achieving their long-term financial aspirations.
The report, released on March 9, indicates that nearly one-third of Generation Z (ages 18 to 29) are either currently investing in or contemplating investments in these high-risk platforms. Alarmingly, 80% of these individuals believe that such investments could provide a quicker route to their financial goals compared to traditional investment methods. This sentiment is echoed by 73% of all U.S. adults who are either investing or considering these assets.
This annual survey, conducted by The Harris Poll, aims to understand Americans' attitudes and behaviors regarding their long-term financial security amidst rising inflation, limited job prospects, soaring housing costs, and significant debt burdens.
In total, 4,375 U.S. adults were surveyed between January 5 and January 21, 2026. John Roberts, the chief field officer at Northwestern Mutual, summarized the findings, noting a troubling trend of financial nihilism among those who feel most financially insecure.
Roberts explained that some individuals, feeling they have not saved enough or achieved desired returns in their long-term portfolios, are resorting to extreme measures, such as betting on unlikely events, like the return of Jesus before the end of 2026.
Furthermore, the survey revealed that over half of Americans (52%) acknowledge a critical financial oversight: prioritizing wealth accumulation over safeguarding existing assets and managing risks. This gap is particularly evident among younger generations, with 57% of Gen Z and 62% of Millennials admitting to this oversight.
Roberts cautioned against the dangerous mindset of seeking shortcuts in financial planning. He emphasized that achieving financial security is rarely about taking risks; instead, it requires consistency, discipline, and a protective approach. He advocates for comprehensive financial planning that allows individuals to grow their wealth confidently without unnecessary risks. While high-risk assets can be entertaining, they should only be funded with disposable income, and individuals should avoid investing more than they can afford to lose.
Recent data from Polymarket traders highlights the risks involved. Out of over 2.2 million traders, only about 32% have reported profitability, with the majority earning minimal returns. Specifically, 73% of profitable traders made $100 or less, and 92% earned no more than $1,000. In contrast, 67% of traders experienced losses greater than their gains, with 51% losing at least $1,000.