Lottery is a game of chance where multiple people buy tickets for a small sum in order to have a shot at winning a huge sum of money, sometimes running into millions. It’s a form of gambling and it’s run by state or federal government agencies.
This video explains the concept of lottery in a simple, concise way that could be used by kids & teens as part of a Financial Literacy curriculum. It’s also a great video to use as a teaching tool for adults who want to explain the idea of probability in a non-technical manner.
In the early years of the United States, colonial America relied heavily on lotteries to raise public funds for a variety of projects. Many of the early colonial universities were funded by lotteries, as well as roads, canals, churches and other public works projects. Lotteries were not just about bringing in revenue, they were often seen as an equitable and fair way to distribute public goods.
Super-sized jackpots are a big draw for the lottery. They drive sales and earn a windfall of free publicity on news sites and on television. But they’re also a trap. Unless you’re one of the lucky few who wins, the chances of winning aren’t much better than if you don’t buy any tickets. And, even if you do win, it’s important to remember that your prize will probably be paid out over time rather than in a lump sum. That means that, in reality, your prize is likely to be smaller than the advertised amount, even before taking into account income taxes.