The news: Gen Zers are more willing to take financial risk than older generations, but that doesn’t mean the generation approaches money uniformly, according to Northwestern Mutual’s 2026 “Planning & Progress Study.”

• Thirty-seven percent of Gen Zers prefer taking calculated risks in pursuit of higher returns, the largest share of any generation. 
• They’re also most likely to embrace emerging investment trends: 15% identify as first movers and 19% as fast followers, compared with 8% and 14% of US adults overall.

But Gen Zers’ risk tolerance is moving in sharply different directions. Over the past year, 45% say they have become more risk-averse, while nearly as many—42%—have become more comfortable with risk. Just 13% report no change.

Why it matters: That near-even divide complicates the conventional portrayal of Gen Z as a primarily risk-seeking generation. Some members may be ready to move money into investments, while others are prioritizing savings and stability. Those preferences can also change quickly as customers’ income, financial responsibilities, and exposure to economic uncertainty evolve.

Having a single “Gen Z strategy” may not be enough. Age may help banks understand broad tendencies, but it’s a weak indicator of individual consumer needs.

Banks that assume all young customers want higher-risk investments could alienate the share that has become less risk averse. But treating all Gen Zers as cautious, early-stage savers could push more growth-oriented customers toward brokerages and investing apps. The same customer could also move between those positions over time.

Implications for banks: Banks have broad visibility into customers’ day-to-day financial behavior. Changes in deposit balances, recurring savings, income stability, spending patterns, and transfers to investment platforms can indicate whether a customer is prioritizing security or getting ready to take more risks.

Banks should use those signals to adjust the products and guidance they surface—for example, emphasizing emergency savings, high-yield accounts, or CDs for customers building stability, while introducing fractional investing, diversified portfolios, or automated investment tools to those demonstrating greater capacity and interest in taking risk.

Dive deeper: For a more detailed analysis of Gen Zers’ banking needs, read our report “Financial Institutions’ Guide to Gen Zers” next.

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