For Gen Z, everything looks like an investment. But it isn’t

Aneri Jambusaria is Chief Wealth Officer of LPL Financial.

Twenty years ago, the distinction seemed simple. You invested through a brokerage account. You gambled at a casino. You were entertained by watching a game, movie or TV show.

For Gen Z, those distinctions are far less obvious.

Gen Z is the first generation to have their sportsbook, brokerage account, crypto exchange and prediction market apps all on the same device. With a few taps, they’re buying stocks, trading options, investing in digital assets, participating in prediction markets and wagering on sporting events. While each involves risk and the potential for reward, increasingly, they’re being delivered through a remarkably similar digital experience.

This convergence is influencing behavior. According to recent surveys, 61% of Gen Z investors ages 18 to 25 report gambling either online or in person[1], and 26% consider sports betting part of their investment strategy, compared with 6% of Gen X investors and just 1% of Baby Boomers. More than half (52%) of Gen Z investors say they’ve redirected funds intended for investing into sports betting within the last year. For some young investors, that means money originally allocated to long-term strategies is being funneled to activities built around immediate outcomes.

As a result, a fundamental question has become surprisingly difficult to answer:

While your sportsbook and brokerage app may resemble each other on your phone, does that mean they should be treated the same? When everything looks like a bet, understanding the difference matters more than ever.

The difference isn’t risk. It’s purpose

Investing, speculating and gambling all involve uncertainty and the potential for loss. The key distinction is not the risk that they’re willing to take but the purpose behind their behavior. What is the goal? Build long-term wealth, express a short-term view or pay for entertainment? 

It’s less about deciding whether these activities are inherently good or bad, and more about understanding their distinct purpose and whether that intention aligns with one’s financial goals. Today’s challenge is that they are becoming harder to tell apart.

The Lines are blurring

No generation has experienced the convergence of investing, speculation and entertainment........

© Fortune