I recently attended parts of the 2026 Next Gen Personal Finance (NGPF) “Back to School” Virtual Conference. Keynote speaker Beth Kobliner discussed trends in personal finance from 1996, when she first wrote her book Get a Financial Life, to the 5th edition available in 2026.
Yanely Espinal from NGPF led a breakout session about teaching about sports betting and prediction markets.
Below are some of my key
take-aways:
Young
Adult Personal Finance
New Book Topics- New
topics in the 5th edition of Get a Financial Life (and the
world of personal finance) include social media influencers, online gambling
and prediction markets, Buy Now, Pay Later (BNPL) purchases, peer-to-peer (P2P)
apps like Venmo and Zelle, and “frictionless’ payment methods (e.g., mobile
wallets like Apple Pay and Google Pay) where people don’t feel the “pain” of
spending money like they do when they pay with cash. Money in P2P apps is not
FDIC-protected.
First-Time Homebuyer Age-
In
1996, the average age of a first-time home buyer was 28 years old. In 2026, it
is age 40. This means twelve fewer years of home equity building and a greater
probability than previous generations of carrying mortgage debt into
retirement.
Money Mindsets-
People want quick cash without the preparation, work, and time needed to build
wealth. This can lead to risky behavior by young adults (especially males)
because so many things like housing seem out of reach. Ms. Kobliner also
cautioned viewers not to buy sale items on a credit card with a higher APR%
(interest) than the sale percentage off.
Sports
Betting and Prediction Markets
Opportunity Cost- Gambling
products are designed with a negative expected return for participants in the
aggregate. The true cost of gambling is not just a losing bet but the compound interest
on an investment that was never made. Research has found that young adults are
redirecting money originally earmarked for investing into sports betting,
thereby slowing possible wealth accumulation.
Normalized Behavior-
Online gambling is a form of entertainment but not an investment strategy to
build wealth. However, surveys have found that young adults normalize gambling
because they believe it is a form of investing. With gambling, people take a
risk on a chance-based outcome where loss is built in. With investing, people
take a risk to own an asset that can potentially grow over time.
The House Edge-
This is a casino’s or betting platform’s built-in mathematical advantage. Some
people get lucky in the short-term, which encourages them to keep playing.
However, the longer they play, the more the house edge eats away at their
balance. Prediction markets want a high volume of bettors because they earn a
percentage on each bet made.
This post provides
general personal finance or consumer decision-making information and does not
address all the variables that apply to an individual’s unique situation. It does
not endorse specific products or services and should not be construed as legal
or financial advice. If professional assistance is required, the services of a
competent professional should be sought.
