A growing number of Americans who feel that they are “falling behind financially” are increasingly turning to speculative markets, including prediction markets, sports betting, cryptocurrency and other high-risk assets, as potential shortcuts to catch up, according to the 2026 Northwestern Mutual Planning & Progress Study. The annual U.S. financial health survey reveals generational differences in financial behaviour and risk appetite, particularly among younger adults.
Generational Divide in Risk‑Seeking Financial Behaviour
The study shows that while overall financial sentiment has improved, with about half of U.S. adults reporting they feel financially secure, a sizeable subset who feel “financially behind” are opting for speculative investments they believe could accelerate wealth gains.
- High‑risk moves driven by insecurity: Among those who say they feel financially behind, roughly 73% indicate they’ve turned to high‑risk options like crypto, prediction markets or sports betting, believing these may help them catch up faster.
- Young adults take the lead: About 32% of Gen Z and 24% of Millennials who feel behind report participating in or considering prediction markets or sports wagering this year.
- Perceived shortcuts over traditional planning: Younger adults, particularly Gen Z, are significantly more likely than older generations to view high‑risk assets as viable alternatives to traditional savings and investment strategies.
According to John Roberts, Northwestern Mutual’s chief field officer, the data suggest that “feeling financially behind” is a strong motivator pushing younger Americans toward speculative markets and high‑risk investing.
Broader Shifts in Financial Attitudes
The study’s findings expose a critical underlying trend: even as macroeconomic indicators improve, such as inflation cooling and wage growth, many Americans feel the traditional financial path isn’t delivering results fast enough.
- Broader reports on this trend describe a form of “financial nihilism”, where dissatisfaction with conventional savings and investment routes is pushing individuals into riskier markets like crypto and prediction contracts.
- This dynamic reflects a disconnect between headline economic growth and individual perceptions of financial progress, particularly among younger cohorts.
Understanding the Appeal of Prediction Markets
Prediction markets, platforms where participants trade contracts on future events (e.g., elections, sports outcomes, economic metrics), occupy an unusual space between financial markets and betting. While still niche compared with stocks or crypto, their appeal among risk‑seeking Americans appears to be growing.
Industry and regulatory discourse increasingly focuses on how such markets fit into broader financial ecosystems, including questions around retail participation, potential risks and protections needed as participation grows. This intersects with larger debates on retail involvement in speculative activity and potential regulatory considerations, with experts advocating for clearer standards and safeguards. For more on these regulatory discussions in prediction market participation, previous commentary highlights the evolving landscape.
Implications for Financial Advising and Planning
The trend toward high‑risk assets underscores ongoing challenges for financial advisors and institutions in addressing both the behavioural motivations and risk tolerance of clients, particularly those who feel behind in reaching long‑term goals like retirement planning or homeownership.
- Traditional financial advice emphasises long‑term planning, consistent saving and diversified investments.
- The uptick in speculative asset interest suggests a segment of the population is prioritising potential rapid gains despite inherent volatility and risk.
A Complex Financial Picture
The Northwestern Mutual study illustrates a broader tension in the U.S. financial psyche: while many adults acknowledge progress in their personal finances, a substantial minority remains dissatisfied and looks for alternative routes to bridge perceived gaps in wealth and financial security. These behavioural shifts signal potential challenges for financial markets, consumer protection frameworks and investor education as speculative activities continue to attract participation from younger and financially anxious cohorts.