The age for Gen Z is 14 to 30 years old, so in many cases, we’re talking about folks that either aren’t yet in the workforce or just got there. Plus, the data confirm that many members of this age cohort aren’t yet working with advisors.
Still, there are some financial topics worth appreciating with Gen Z. Thanks in part to their tech inclinations, many members of this demographic invest earlier than their older counterparts did. Many young people have their eyes set on wealth building, not throwing in the towel on the American Dream or retiring earlier than their peers – all admirable goals and each implies that as Gen Z ages, they’ll eventually find their way to advisors.
On the other hand, there are some issues Gen Z needs to conquer and do so sooner than later because, by some accounts, they’re endangering their financial futures. One takeaway is that advisors working with parents of Gen Z kids should work with those clients to ensure “the kids are alright.”
Points of emphasis should include this generation’s proclivity for betting over investing and what may amount to be over-dependence on technology, including social media and artificial intelligence (AI) to inform investing decisions.
Some Gen Zers Are Making Bad Bets
Some of the findings in Betterment’s recently published 2026 Retail Investor Survey are startling, including the point that 26% of Gen Z view sports betting as part of their long-term investing plans. Take it from someone that lived in Las Vegas for four-plus years and someone that covers the betting industry, at most 5% of bettors are profitable over the long haul.
Yet, many Gen Zers are attempting to fight those odds. Worse yet, they’re doing so at the expense of funding standard investment accounts. As Betterment points out, 52% of Gen Zers redirect money that could go into taxable brokerage or retirement account to sports wagering or prediction markets with 14% of the demographic committing that “sin” multiple times in a month.
Some big-name financial services firms, including Charles Schwab and Vanguard, have warned about the ills of blurring the lines between betting and investing, but Betterment CEO Sarah Levy says the financial services industry needs to up its game on that front.
“When a prediction market or sportsbook starts to feel like a retirement strategy, we have a problem," she said in a statement. "These products are designed to keep people seeking the next quick score, not to help them build toward the next decade. Younger investors deserve access to the tools and information that meet them where they are, but the industry also has a responsibility to be clear about the difference between participating in a trend and building lasting wealth."
Too Much Tech
It won’t surprise advisors or parents of Gen Zers that these young people are tech-savvy, but when it comes to investing, all that tech might be too much of a good thing. As Betterment notes, 60% of Gen Z relies on social media as their primary news source, up from 45% just two years ago. Add to that, 60% is nearly triple the percentage of Gen Z that says they’re getting market updates and perspectives from an advisor.
Then there’s the specter of AI dependence. As AI evolves, more investors are using it in various ways to inform their processes, but Gen Z does at a significantly higher clip than the national average and many members of that cohort may be taking it too far, incurring more risk while ignoring proper portfolio balancing techniques.
“Gen Z is driving much of that shift, with 48% saying AI has influenced a decision, and Gen Z investors are eight times more likely than Boomers to be comfortable using AI for long-term financial planning, 41% compared to 5%.,” adds Betterment.
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