Playing the Lottery: What Does It Cost You?

All you need is a dollar and a dream, so the saying goes. And that is what most lottery players are betting on. Despite the fact that your chances of winning a lottery are usually more than a million to one (about the same as getting struck by lightning), that didn't stop nearly 60%of Americans from buying lottery tickets last year.

What makes people spend their hard-earned cash on something so unsure? For many, it's the excitement of gambling. When we see advertisements of people hitting the jackpot, we think, "That could be me!" What the ads don't mention is how rare it is to win. The dream of getting rich quick is an old one. In ancient Roman times, lotteries were used to raise money for armies. Later on, in the 18th and 19th centuries, government lotteries were held to raise money for churches, colleges, and hospitals. Lottery winners would receive prizes in the forms of cash, dishes, and rugs.

Today, lotteries are played in 37 states plus Washington, D.C. During the year 2000, lottery ticket sales amounted to over $38 billion. That's more than what Americans spend in one year on sports games, movies, CDs, video games, and visits to amusement parks combined. Lotteries have become an important source of funds for many states. Money raised from ticket sales helps pay for programs like healthcare, transportation, and education.

Although gambling fever is great for state governments, it can really hurt the average person's wallet. Ten or twenty dollars each week on lotto tickets adds up fast. Consider that saving $25 a week for 40 years at 7% interest would earn you savings of $286,640-now imagine what you could do with THAT money!