Gen Z is shifting their money away from stocks and towards gambling.

According to the platform, Gen Z is shifting their funds from traditional financial instruments to sports betting, showing the highest engagement in this activity. From a survey of 1,000 people, Betterment found that 12% of investors view sports betting as part of their long-term financial strategy. Although the survey size was modest, it suggests a growing trend among young people, aligning with recent observations by financial advisors. The survey also revealed that 24% of participants redirected their investments into sports betting. Gen X and Boomers were the least inclined to include sports betting in their financial plans, with only 6% and 1% doing so, respectively. Meanwhile, 14% of Millennials considered sports betting in their strategy, but this jumped to 26% among Gen Z. Essentially, more than one in four Gen Z individuals are exploring sports betting as part of their long-term financial strategy. Both Millennials and Gen Z are likely withdrawing money from traditional investments to fund their sports betting activities.

Over half of Gen Z, around 52%, are tapping into their investment funds to fuel their sports betting habits. For Millennials, this figure is still high at 31%, though notably less than Gen Z. This trend might be linked to Gen Z's generally pessimistic outlook on the economy, leading them to be more reckless with their finances, almost as if they're challenging the economic situation. Financial advisors note that while the stock market is a reliable way to grow one's wealth over time, sports betting is often seen as a zero-sum game. Here, fees and the unpredictability of outcomes typically lead to a negative net result for most people.