Americans' Finances are Improving - But Some Still Feel Behind and are Turning to Prediction Markets

Northwestern Mutual's 18th annual Planning & Progress Study finds half of adults in America now saying they feel financially secure – an increase from 44% last year. Over half also consider themselves to be 'disciplined' financial planners. Even optimism around homeownership is on the rise.

But at the same time, a sizeable number of Americans – particularly young adults – are investing in or are considering investing in high-risk/speculative assets such as prediction markets, sports betting, and cryptocurrencies. Among those using or considering these financial instruments, 73% say they're doing so because they feel financially behind and think those investments offer a faster path to their goals than traditional methods. And among Gen Z, the number is 80%.

These are some of the first findings from Northwestern Mutual's newly released 2026 Planning & Progress Study, the company's proprietary research series that explores Americans' attitudes, behaviors, and perspectives across a broad set of issues impacting their long-term financial security.

Financial Security and Discipline Continue to Improve

The number of Americans who say they're financially secure went up across every generation, with the largest year-over-year gains coming from Millennials and Gen X.

Feel financially secure

2025

2026

U.S. Adults

44 %

50 %

Gen Z

36 %

39 %

Millennials

43 %

53 %

Gen X

40 %

48 %

Boomers+

55 %

57 %

Among Americans with a financial advisor, 71% said they felt financially secure while just 10% did not feel financially secure.

Financial discipline improved too. The number of Americans who consider themselves to be 'disciplined' financial planners hit a high of 65% in 2020, during Covid. Four years later it fell to a record low of 45% in 2024. Now it is on a two-year upward trend.

U.S. Adults who consider themselves "disciplined" financial planners

2020

65 %

2021

60 %

2022

59 %

2023

50 %

2024

45 %

2025

49 %

2026

53 %

"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. "Many factors are at play, but an uptick in financial discipline is certainly having an impact. The best way to move from financial anxiety to confidence is by taking control, practicing good habits, and making sound decisions. There's also nothing quite like the confidence that comes from a trusted professional telling you that you're making wise financial choices. Having a trusted advisor isn't just about the returns; it's about reassurance."

Signs of Financial Nihilism Surface – Led by Gen Z

Gen Z and Millennials make up the largest share of Americans who are investing in – or are considering investing in – high-risk speculative assets this year. These young adults demonstrate the strongest interest in cryptocurrencies, sports betting, and event-based contracts offered through prediction markets.

Currently invested in or considering in 2026

U.S. Adults

Gen Z

Millennials

Gen X

Boomers+

Crypto

24 %

32 %

35 %

20 %

8 %

Sports betting / prediction markets

17 %

32 %

24 %

10 %

3 %

Options

13 %

17 %

18 %

14 %

4 %

Meme stocks

9 %

14 %

13 %

6 %

2 %

Across generations, a driving factor behind why people are taking greater risks with these investments is because they feel financially behind.

Financial Nihilism

U.S. Adults

Gen Z

Millennials

Gen X

Boomers+

Percentage who feel financially behind and believe
high-risk/speculative investments will help reach
financial goals more effectively than traditional methods

73 %

80 %

75 %

66 %

51 %

Another finding from the survey is relevant here – more than half (52%) of Americans say they suffer from a common blind spot: they place too much emphasis on building wealth/growing their assets without dedicating enough to protecting their assets and managing against risks. And younger adults are reporting this planning gap more often: for Gen Z the number is 57% and for Millennials it's 62%.

"When people feel behind, they often look for shortcuts," said Roberts. "But building financial security is rarely about cutting corners. It's about consistency, discipline, and protection. A comprehensive plan helps people grow confidently without taking unnecessary risks. 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."