Financial Nihilism Is Real, But How Can Credit Unions Respond?

Expensive housing, mounting student loans, a wobbling economy, AI-driven job losses, political partisanship. These are just a few things Gen Z is ruminating over. That sense of uncertainty is reshaping how young people view money, security, and the very idea of planning for the future.

In a May 2025 Gallup survey, Gen Z adults who said they were “thriving” declined five points year-over-year to 39%. It seems the outlook of this cohort — which accounts for roughly one-quarter of the world’s population — is growing more pessimistic as its members age. And as that pessimism grows, so, too, does financial nihilism.

What Is Financial Nihilism?

Financial nihilism is an economic and investment philosophy, coined by Demetri Kofinas, that believes systems and rules are rigged. Based in deep disillusionment, it detaches price from value when it comes to economic decision-making and turns value into something that is purely subjective.

Major shifts in the macroeconomy — like stagnated wages and the rising cost of housing, education, and raising a child — has not only dampened many younger people’s economic outlook but has caused many to give up entirely. Why work hard if buying a house or starting a family is financially unfeasible? Why save for a down payment, or retirement, when those goals are a scam perpetrated by established institutions and older generations?

This mindset encourages a world of meme coins, gambling, and a casino-like approach to the stock market.

How Financial Nihilism Impacts The Workplace

As Kyla Scanlon wrote in a December Wall Street Journal article, although every generation has faced obstacles, “upward mobility was always contingent on certain fundamentals: strong institutions, affordable education, accessible homeownership, and stable work.”

The oldest members of the Gen Z cohort have entered the labor force and have their whole careers ahead of them. They represent the households most likely to be impacted by weaknesses in economic stability, higher education finance, housing affordability, and labor market conditions. In the face of such instability, they dissociate.

Indeed, economic research out of Northwestern University has born this out. A model developed by two doctoral candidates there shows that when housing prices outstrip affordability, workers who do not own homes are more likely to disengage from their jobs, save less for the long, and turn toward higher-risk spending and investments.

Examining counties in which home prices have risen, researchers found renters who made at least $7,500 a month decreased their credit card spending, particularly on luxuries and non-necessities, presumably saving for a home. On the other hand, renters who did not make $7,500 a month actually increased their credit card spending.

The Northwestern research further found that renters with a net worth of less than $300,000 were less likely to put a premium on hard work. Those with a net worth above that threshold believe homeownership is within reach; therefore, they are more motivated to work and committed to saving.

How Can Credit Unions Combat Financial Nihilism?

As responsible fiduciaries of members’ money and bedrock institutions of community prosperity, credit unions have several ways to push back against financial nihilism. To combat such doom and gloom, or at least mitigate it, credit unions need to help younger members understand that the sun will rise tomorrow and the earth will continue to spin.

Reading, Writing, And Wealth Building

Helping members establish realistic but attainable financial goals can help them improve not only their monetary outlook but their personal one as well.

More U.S. states are mandating financial literacy courses for high school graduation, but making financial education resonate with the country’s youngest spenders and savers is no easy task. Three credit unions in Florida, Oregon, and Pennsylvania are responding with tailored approaches to equip students with essential financial skills. Read more about that in “3 Ways To Make Financial Education Stick” on CreditUnions.com.

Help With Housing

Plugging the hole in housing affordability is one way credit unions are furthering their community commitment, with cooperatives across the country supporting homeownership via loans to members as well as loans to local housing developers.

Washington State Employees has created a new role to tackle affordable housing at a systemic level. Read “What’s In A Name: Director Of Community Homeownership Development” on CreditUnions.com to learn more about that. Heritage Family is partnering with the City of Rutland and the Vermont Treasurer’s Office to support construction, renovation, and more. Read “From State Funds To Affordable Homes” today.

Smart Support

The average student loan balance on federal loans hovers around $40,000; however, a smaller group of borrowers hold significantly more. According to The Motley Fool, 60% of borrowers pay up to $300 a month and 20% are behind on their repayments.

Student loan refinancing and loan debt assistance is one way credit unions can make inroads with these borrowers and begin earning their trust as they work to build a stronger financial future. Bringing this piece of the loan portfolio into a broader assistance strategy can also help credit unions reach members who feel discouraged about their financial lot at the moment they most need support.

Beyond Budgets

Financial nihilism is the exact opposite of financial wellbeing, which is based in confidence, control, and peace of mind. If credit unions want to help people achieve financial wellbeing, they must meet them where they are, not just financially, but emotionally.

“If someone is stressed about money … they want reassurance,” says Chris Howard, a senior vice president at Callahan & Associates. “They want someone to listen. They want to feel seen, heard, and understood. Most of all, they want to know you care. People trust those they believe care about them.”

In practice, financial wellbeing means designing experiences that build confidence and a sense of safety, not just knowledge. Read more in “Financial Wellbeing Isn’t What You Think It Is.”

Despite the challenges financial nihilism presents, there is hope for the future. That Gallup survey in which 39% of Gen Z adults said they were thriving? A full 73% said they agree or strongly agree that they have a great future ahead of them.

With a little help from their credit union, that vision for the future can be closer than it feels.

When Members Know You Care, They Stay. Combatting financial nihilism doesn’t start with service or rates — it starts with confidence and emotional connection. By creating a strategy around mission-aligned, data informed actions, credit unions are shifting member behaviors to improve their financial wellbeing. Learn more today.