Betting big instead of playing it safe
When Jacob Kaplan thinks about financial security, he doesn’t picture the traditional path of saving slowly, buying a starter home, and tucking money into a retirement account. Instead, the 25-year-old is spending up to 30 hours a week placing bets on sports. Kaplan uses Discord groups to swap tips, pays for data tools to sharpen his odds, and views risk as the only way forward.
“There’s risk in every bet,” he admits, “but with the right strategy and people around you, it feels like a chance at solving the financial problems my generation is facing.”
Kaplan is part of a fast-growing group of young adults who’ve embraced what some economists call financial nihilism. The idea? Since the old road to wealth feels broken, you might as well take your shot at outsized returns — even if it means rolling the dice on high-risk plays.
What exactly is financial nihilism?
Financial nihilism is less about reckless behaviour and more about frustration. Young people are watching home prices soar, student debt pile up, and the job market tighten. Saving $200 a month into a 401(k) feels like a drop in the bucket. So instead, they’re diving into meme stocks, crypto, sports betting, leveraged ETFs, and options trading.
“It’s a rational response,” says Columbia Business School professor Simon Oh. “Traditional ways of building wealth don’t get you nearly as far today. So many young investors feel the logical choice is to swing for the fences.”
The new playground of risk
The menu of high-stakes opportunities keeps expanding.
- Meme stocks: GameStop and AMC lit the spark during the pandemic, and newer names like OpenDoor and Kohl’s have surged in wild trading frenzies.
- Crypto: From Bitcoin to meme coins, digital assets continue to lure Gen Z investors. A recent U.S. Bank survey found they’re the most likely age group to explore crypto in the next five years.
- Sports betting & prediction markets: Platforms now let people wager not just on the NFL, but even on things like whether a celebrity announces a tour.
- Leveraged ETFs & options: These allow traders to amplify bets — and potential losses. Options contracts hit record highs this year, showing the appetite is stronger than ever.
For many, it’s less about a love of finance and more about chasing a sense of control in a world where the odds feel stacked against them.
Out-of-reach dreams fuel the craze
Behind the hype is real anxiety. Housing affordability is at historic lows. Three in ten Gen Zers say they’ve already given up on ever owning a home. Inflation, student loan repayments, and job market uncertainty add to the mix.
“Anything on the traditional economic ladder feels out of reach,” explains economic commentator Kyla Scanlon. “So for some young people, gambling in the markets feels like the only move left.”
It’s not just about money, either. Cultural pressures — from dating apps to college rejections — amplify feelings of exclusion. Add in grim consumer confidence data, and you get a generation convinced the safe route isn’t safe at all.
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Short-term thrill, long-term doubts
Even the most committed financial nihilists admit the lifestyle isn’t forever. Kaplan, the sports bettor, invests some of his winnings in index funds and savings accounts. “I don’t see this as a sustainable long-term income,” he says. “It’s working now, but at some point I’ll cash out and move on.”
That balance — chasing short-term gains while quietly building a safety net — may be the real lesson here. Financial nihilism isn’t just rebellion; it’s a coping mechanism for a generation that feels traditional promises of wealth are broken.
Whether it’s a passing craze or a permanent shift, one thing’s clear: for young investors, playing it safe is starting to feel like the bigger gamble.
