Dashed dreams are a reality when it comes to the lotto. Americans are spending about $70 billion dollars a year on lottery tickets. What percent chance do you think an individual has to score a winning ticket? Are the odds in your favor, or against you? Think for a moment about why someone may choose to spend money on the lottery.
Read the article “Lottery Dreams” and write down how you could use $273 a year instead of gambling it away.
Use an investment calculator, like one found at Calculator.net, https://www.calculator.net/investment-calculator.html and put the $273 in the calculator for the starting amount of the investment, with a modest return of 6% each year, entering $273 additional each year, how much could you have in 10 years? What about 20? What happened to the total from 10 to 20 years? Why did it more than double? Would you rather have a 1 in 175,000,000 chance at winning, or the total $273 invested over time?
Use the articles to create an infographic that looks like a lottery ticket.
Florida Literacy Standards:
SS.912.FL.2.1: Compare consumer decisions as they are influenced by the price of a good or service, the price of alternatives, and the consumer’s income as well as his or her preferences.
SS.912.FL.3.1: Discuss the reasons why some people have a tendency to be impatient and choose immediate spending over saving for the future.
SS.912.FL.3.3: Compare the difference between the nominal interest rate which tells savers how the dollar value of their savings or investments will grow, and the real interest rate which tells savers how the purchasing power of their savings or investments will grow.
SS.912.FL.2.5: Discuss ways people incur costs and realize benefits when searching for information related to their purchases of goods and services and describe how the amount of information people should gather depends on the benefits and costs of the information.
SS.912.FL.5.10: Explain that people vary in their willingness to take risks because the willingness to take risks depends on factors such as personality, income, and family situation.
SS.912.FL.6.1: Describe how individuals vary with respect to their willingness to accept risk and why most people are willing to pay a small cost now if it means they can avoid a possible larger loss later.
Created by Deborah Kozdras and Brittany Sampson