Youngsters Use Sports Betting and Prediction Markets as Financial Shortcuts

Even as half of Americans report feeling financially secure this year, a growing number of young adults have begun seeking quicker paths to wealth through high-risk ventures such as sports betting, cryptocurrencies, and prediction markets. 

That’s according to Northwestern Mutual’s newly released 2026 Planning & Progress Study, which looks at financial behaviors and attitudes across generations.

“Positivity and Optimism” on the Rise

Across the country, optimism about personal finances is on the rise. Millennials and Gen X saw the largest jumps in people who say they feel financially secure, and more Americans now consider themselves “disciplined” financial planners compared with the last few years. 

“Even in an economy that’s often described as K-shaped with wealth disparities growing among older and younger generations, Americans’ positivity and optimism about their own financial security is on the rise across the board,” said John Roberts, Northwestern Mutual’s chief field officer.

However, alongside this optimism is what Roberts calls a form of financial nihilism, especially among younger adults. 

Younger Generations Prefer High-Risk Speculative Assets

Gen Z and Millennials make up the bulk of those either using or considering high-risk speculative assets. 

Among those investing in sports betting, crypto, or prediction markets, 73% of Americans overall say they are doing it because they feel financially behind, and they believe these tools can help them reach their goals faster than traditional methods. For Gen Z, that number jumps to 80%.

“When people feel behind, they often look for shortcuts,” Roberts said. 

“But building financial security is rarely about cutting corners. It’s about consistency, discipline, and protection. These high-risk assets can be fun to play with, but that’s why we recommend only spending ‘fun money’ on them. 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.”

The study also found a gap in terms of planning gap, with more than 50% of Americans focusing on growing wealth but not enough work on protecting it. Younger adults report this imbalance even more often. 

While sports betting and online gambling, crypto, and prediction markets might feel like exciting ways to catch up, financial experts continue to emphasize discipline, planning, and risk management as the surest path to long-term stability. The study was conducted by The Harris Poll among 4,375 US adults ages 18 and above. The survey was conducted online between January 5 and January 21, 2026.