How nihilism turns youth into high-risk takers and reckless spenders

The more financially insecure Gen Z’ers experience their future, the more likely they are to engage in higher-risk and speculative assets, according to a new study by Northwestern Mutual Planning & Progress.

The survey showed that Gen Z’ers are seeking shortcuts to wealth as they are confronted with limited job opportunities, expensive housing costs, and often student loan debt to pay off.

Nearly a third of Gen Z individuals surveyed said they were putting money into, or considering putting money into, sports betting and prediction markets, with most believing these vehicles can get them to their goals more quickly.

“They’re effectively saying they haven’t saved enough and aren’t earning the returns they want in a long-term focused portfolio, so may as well swing for the fences and bet on things like, literally, whether Jesus is going to return before the end of 2026.” – John Roberts, Northwestern Mutual’s chief field officer.

The current nihilism among young people doesn’t only lead to more risky financial behavior, but also to them buying more. Nihilism increases as traditional religion fades out, removing shared sources of meaning and stable values. This leaves many individuals feeling empty, lost, and without purpose.

In modern society people attempt to fill their inner emptiness by buying goods and services research shows. Advertising and media constantly promote the idea that buying things brings happiness, success, and identity. Although it provides us with short-term psychological comfort, it doesn’t lead to lasting fulfillment. The underlying emptiness remains, and people are pushed to keep consuming more.

Add that to an environment that makes it very easy to spend money, with afterpay, brands optimizing for seamless payment journeys, and easily accessible advice from financial influencers and it’s no wonder that many Gen Z’ers are financially unstable. In the Netherlands, 69% of young Dutch people are struggling financially.

Instead of simply teaching young people how to spend wisely, we need to offer them perspective, supporting them as they navigate the rapidly changing job market, rising housing costs, and student debt, so they don’t fall into nihilism.