Gen Z is deep in ‘financial nihilism’: Why young people are betting big on stocks and crypto

Core Insights - Gen Z exhibits a less optimistic economic outlook compared to older generations, leading to a phenomenon termed "financial nihilism" which reflects their disillusionment with traditional financial systems [1][2] - This generation's financial mindset is shaped by experiences during economic downturns, such as the 2008 crisis, resulting in a skepticism towards conventional investing methods [1][2] Financial Nihilism - Financial nihilism, a term introduced in 2021, describes the belief among Gen Z and younger millennials that the traditional financial system is unfair and unpredictable, making saving for retirement or investing seem pointless [2] - Contributing factors include stagnant wages, high living costs, significant student debt, and challenges in homeownership [2] Attitudes Towards the American Dream - Many in Gen Z perceive the American dream as unattainable, expressing concerns about potentially living with their parents indefinitely and the inability to own a home [3] Investment Preferences - Gen Z is shifting away from traditional stock and bond markets, opting instead for riskier investments such as cryptocurrencies, meme stocks, and sports betting platforms [4] - A recent U.S. Bank survey indicates that Gen Z is more inclined than older generations to explore or plan investments in cryptocurrencies over the next five years [5] - This trend reflects a broader loss of faith in the traditional value of money and market functions, with a growing desire for quick wealth accumulation [5]