August 14, 2026 l The Manila Times
FINEX has been promoting financial literacy for over a decade. We have a team of volunteers who lecture and provide guidance to various sectors that lack the financial skills to meet economic challenges.
There is, however, a growing trend among financially educated people — some of whom could even be considered sophisticated investors — who are simply opting out of traditional ways of building wealth. This trend has emerged among Gen Zs globally because many believe that buying a home or retiring comfortably has become out of reach.
This sense of surrender is part of an economic trend known as financial nihilism. The behavior has become associated with Gen Z, the demographic group born between 1997 and 2012. Described as the “buy everything, own nothing” generation, they have experienced soaring living costs and volatility in traditional debt and equity markets.
This negative outlook is not just a Gen Z problem. It affects all generations. Wars and geopolitical tensions have contributed to higher fuel costs, inflation and interest rates.
Inflation in the country eased to 6.2 percent in July, but it offers little comfort. Adding to the tension is political uncertainty that continues to erode investor trust and confidence.
Yet financial nihilism appears particularly pronounced among younger people. Older generations, after all, experienced periods when the path toward financial stability was more predictable.
No intrinsic value
Financial nihilism was coined by American economist Demetri Kofinas during the pandemic. He described it as a philosophy in which speculative assets are viewed as having no intrinsic value.
Buyers of cryptocurrencies, for example, may invest not because they believe in their technological potential or utility, but simply because they expect prices to rise.
For financial nihilists, Kofinas argues, price becomes the thing itself, detached from any underlying value. What matters is the expectation that someone else will pay more for the asset later.
Research on the subject suggests that young investors tend to plan for the short term and are willing to accept greater risks in exchange for potentially higher returns.
Economic and technological developments have also made risky financial activities more accessible. Consider the online investment and betting platforms now readily available on mobile phones.
According to the Gambling Consulting Authority, a young and digitally fluent audience is shaping the Philippine online gaming market. Its figures show that players aged 25 to 34 account for the largest share at 35 percent, while those aged 18 to 24 account for another 20 percent.
This means more than half of all players are under 35. The data suggest that online gaming in the Philippines is no longer limited to older, high-income consumers but is driven by wage earners and middle-income households.
Financial gain remains the strongest motivation for Filipinos who engage in online betting. According to the data, 60 percent of sports bettors and 55 percent of casino players in the Philippines say they gamble primarily “to earn money.”
Think about that for a second. Our young people are betting against a system in which the odds are stacked against them, yet they persist because they believe their other investment options are even worse. This is financial nihilism overriding rational expectations.
The data also show that traditional sports betting remains the most popular gambling product in the Philippines, with one in 10 players already identified as problem gamblers.
Another 30 percent fall within moderate- to high-risk categories, putting them at greater risk of developing gambling problems. The situation has become serious enough that the Philippine Amusement and Gaming Corp. launched a 24/7 National Problem Gambling Helpline in July, connecting callers with trained counselors who can provide confidential support, psychological assistance, and referrals for rehabilitation.
The gaming regulator has finally recognized the problem within the industry it oversees. It is clearly a growing concern, and whether this initiative will be enough remains uncertain.
For as long as this young generation feels it has little chance of achieving financial stability through conventional means, many will continue to take the riskier path.
***The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX. For comments, email rsgoseco@gmail.com. Photo is from Pinterest.