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

"First coined in 2021 by Demetri Kofinas, the host of the Hidden Forces podcast, "financial nihilism" is a trend that describes how Gen Z and even some younger millennials, who are profoundly disillusioned with the traditional financial system, believing it's unfair and unpredictable, are finding it pointless to save for retirement or invest in the stock market, or in bonds, or other conventional ways."

"So, it's no wonder many of them are engaging in so-called "financial nihilism," applying a gloomy outlook to their financial mindset, resulting in a new and different take on investing. Zoomers grew up with smartphones, the internet, and social media during difficult times like the 2008 economic crisis and Great Recession, and the subsequent protest movement, Occupy Wall Street. And as such, they're disillusioned with traditional ways of doing things, which extends to how they invest and conduct their own finances."

"Instead of playing the stock or bond markets in traditional ways, Gen Z is gravitating to more rewarding, but riskier strategies like investing in cryptocurrencies including bitcoin and "meme" coins, as well as meme stocks and sports betting platforms, CNBC reported. According to the outlet, Gen Z is the most likely generation to say they were either curious about or planning to invest in cryptocurrencies over the next five years, per a recent U.S. Bank survey."

Gen Z entered adulthood amid smartphones, social media, the 2008 financial crisis, and Occupy Wall Street, leading to distrust of traditional financial institutions. Financial nihilism describes a belief that the financial system is unfair and unpredictable, prompting many to deem saving for retirement or investing in stocks, bonds, or conventional vehicles pointless. Economic pressures such as stagnant wages, rising living costs, heavy student debt, and barriers to homeownership reinforce that belief. The result is diminished faith in money's real value and increased attraction to riskier alternatives, including cryptocurrencies, meme coins, meme stocks, sports betting, and speculative ETFs.

Read at Fast Company