A New Study Says Americans Are Embracing 'Financial Nihilism' as They Try to Keep Up. Here's What That Means

Key Takeaways

• Nearly three-quarters of Americans who feel financially behind believe speculative investments, like cryptocurrency and betting, can help them achieve their goals.
• Gen Z and Millennials are more likely than other generations to turn to speculative investments, with over one-third considering cryptocurrency in 2023.

The stock market has reached record highs this year—but some Americans think they’ll need to supercharge their portfolio with risk to meet their financial aims.

Nearly three-quarters of Americans who felt financially behind expressed feeling “financial nihilism,” according to a Northwestern Mutual survey of more than 4,300 adults. The term, the company said, refers to the belief that particularly high-risk moves—including cryptocurrency, betting and prediction markets—can better help them reach their goals than more traditional methods, like index and target-date funds.

What This Means For You

While it may be tempting to pile money into speculative investments because they offer higher potential returns, you can reduce risk and possibly have a better chance of success by sticking to tried and true investment strategies like investing in low-fee index funds.

Americans have in recent years faced a slowing labor market, rising higher education costs, and a competitive housing market, factors that may be influencing their relationship with money. Gen Z, the oldest who are 29, and Millennials were the most likely to feel this way, according to Northwestern Mutual.

“When people feel behind, they often look for shortcuts,” said John Roberts, a chief field officer at Northwestern Mutual, in a press release. “But building financial security is rarely about cutting corners. It’s about consistency, discipline, and protection.”

In the survey, more than one-third of Gen Zers and Millennials said they had or were considering investing in cryptocurrency this year. Nearly a third of Gen Zers expressed a similar interest in sports betting and prediction markets.

Related Education

Investing vs. Speculating: Key Risk and Strategy Distinctions

Cryptocurrency Explained With Pros and Cons for Investment

“These high-risk assets can be fun to play with, but that’s why we recommend only spending ‘fun money’ on them,” said Roberts. “Don’t allocate more than you can afford to lose completely and focus your planning on strategies that have been proven to help people build and protect wealth over the long-term.”

A Supreme Court decision in 2018 legalized sports betting and since then, more 30 states have legalized it. The COVID-19 pandemic ushered in a meme stock craze, the effects of which can still occasionally be felt in markets, helping fuel dramatic growth at several retail-focused trading platforms. Robinhood, for example, boasted more than 27 million funded customers as of January.

Bitcoin has plummeted from its high in 2025. But backers continue to see substantial upside, citing among other reasons a crypto-friendly posture by Trump administration that suggests a friendly outlook for regulation.

Do you have a news tip for Investopedia reporters? Please email us at

[email protected]