Gen Z is coming of age at a time when it seems the old rules of financial success no longer apply. High housing costs, stagnant wages, rising child care costs, and an ongoing affordability crisis are fueling a popular narrative that young people are embracing financial nihilism, or the belief that because traditional paths to wealth-building are out of reach, they must pursue risky financial strategies to achieve their financial goals, crucial to understanding Gen Z's financial behavior.

At the same time, evidence suggests young people are saving and investing earlier than previous generations, managing their money responsibly, and actively seeking financial guidance from friends, family, and social media influencers.

So which narrative is correct? Are young people financial nihilists, gambling away their financial security on cryptocurrency, meme stocks, and sports betting? Or are they savvy strategists, diligently saving and planning ahead for an uncertain future?

To explore this question, the Urban Institute fielded a nationally representative survey (N = 3,194) in January 2026. We asked respondents about their financial attitudes and behaviors and analyzed the data by age to explore how Gen Z young adults (who are currently ages 18 to 29) compare with adults age 30 or older.

Understanding Gen Z's Financial Behavior: Key Findings

  • Nearly two-thirds (65 percent) of Gen Z respondents say their generation faces tougher economic circumstances than previous generations. More than half (52 percent) say their generation must take more risks to reach their financial goals.
  • At the same time, many young adults are optimistic about their financial future: 56 percent believe their financial situation will improve in the next year and 42 percent believe they’ll be financially better off than their parents.
  • Many young adults are actively saving in checking accounts (75 percent), retirement accounts (42 percent), and high-yield savings accounts (25 percent). Smaller shares are saving in other types of accounts, such as money market accounts and educational accounts.
  • Some young adults are also embracing speculative financial strategies to get ahead, including cryptocurrency (22 percent), retail investing (21 percent), and sports betting (17 percent).

Far from being purely nihilistic or savvy, today’s young adults are navigating a complex financial landscape with caution, creativity, and ambition. The survey data show they are embracing a mix of traditional and speculative financial strategies to build wealth and financial security during challenging economic times.

Read the full article about understanding Gen Z's financial behavior by Thea Garon, Renee Wu, Judah Axelrod, Luisa Godinez-Puig, and Karolina Ramos at Urban Institute.