80% of Gen Z Sees Risky Investments as a Shortcut — Is the Traditional Approach Dead?
The data is clear: on the whole, Gen Z is taking investment shortcuts because their financial futures seem dire. Open TikTok on any random day and you’re just as likely to see someone dropping $100 on a sports parlay as an “investment strategy” as you are to hear about someone putting $100 into the stock market.
Here’s what the actual data shows and why Gen Z might have the right to be concerned.
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The Financial Pressure Is Real
While TikTok can only provide anecdotal information about the state of Gen Z, the hard data seems to back it up. According to Northwestern Mutual's 2026 Planning & Progress Study, nearly three in four Gen Z adults said financial pressure has already pushed back at least one major life milestone, while 71% believe they may never afford one at all.
The top concern on the list is buying a house, which 34% of Gen Z respondents think will never happen. Having kids and getting married aren't far behind, and paying for college shows up almost as often. These are the concerns of the majority of Gen Zers, according to the study.
Gambling Is on the Rise as an Investment Strategy
There’s a term that’s been in the press more often lately describing the dire outlook many Americans, particularly Gen Z, have about their futures: Financial nihilism.
More and more Americans have begun making high-risk bets on crypto and sports instead of traditional investments like stocks and bonds. The reason given by 73% of the respondents in the Northwestern Mutual study is that they feel financially behind and think it's a faster route to their goals. Among Gen Z, that number jumps to 80%.
Survey data showed 32% of Gen Z are currently in or considering sports betting and prediction markets, compared with just 3% of boomers. The same pattern holds true for crypto investing, which attracts 32% of Gen Z versus 8% of boomers.
Financial Independence Keeps Getting Pushed Back
The same Northwestern Mutual study showed nearly three in four Gen Z adults still rely on their parents for financial support in some form. Across all adults, the average age people say they hit financial independence is 37. That’s nearly two decades after the average American finishes high school.
This long wait until financial security at least partially explains why Gen Zers want to accelerate their wealth-building. A $10 crypto bet that could theoretically become $100 in short order can seem a lot more appealing than a $10 stock investment that might double in seven or eight years. However, that line of thinking overlooks the risk that aggressive bets like that often end up losing money.
Traditional Investment Math Still Works
Getting rich quickly can seem like the only path to financial success for many Gen Zers. Of course, those who can see the long-term picture understand that the magic of compound interest still pays huge dividends.
Imagine a 25-year old who invests just $160 per month in an S&P 500 index fund, or roughly $40 per week. While 40 years might seem a lifetime away, those with the patience and discipline to keep investing this way could end up with a nest egg of over $1 million, if the S&P 500 continues to provide a 10% average annual return.
That’s a simple, “boring” path to a seven-figure retirement account that offers a much greater chance of long-term success than investing in crypto or betting on sports.
There’s no denying that putting some money on speculative bets like prediction markets and cryptocurrencies can be exciting, and sometimes even profitable. But investing the bulk of a paycheck in “boring” choices can provide a foundation for long-term financial stability that aggressive bets can’t offer. For many, a hybrid approach that combines a small percentage of speculation with a larger base of traditional investments can be the winning ticket.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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