How Do People Spend Their Lottery Winnings?

Share
Noun
• a part or portion of a larger amount
She bought a house with her share of the winnings.

charitable
Adjective
• intended to help people in need
This department manages all of our company's charitable giving.
She intends to resign in order to devote more time to her family and charitable causes.

investment
Noun
• the act of putting money into something that will help one make more money
It is wise to seek advice before making an investment.
Our corporation has got high returns on most of its investments.
debt
Noun
• the situation of owing money
Many consumers are hurt by credit card debt.
I have to pay all my debts.

Burn
Verb
• to spend money carelessly
I burned through all my savings while traveling.

anonymous
Adjective
• (of a person) whose identity is unknown
The school received a large sum of money from an anonymous donor.
The people we interviewed for this story asked us to keep their identities anonymous.
Article
How Do People Spend Their Lottery Winnings?
The largest U.S. lottery prize ever offered – $1.56 billion – was paid out to three
winners in January 2016.
Of course, the federal government takes a share of lottery winnings – almost 40
percent in taxes. And state governments may also take around 8 percent.
But what do lottery winners do with the money they get to keep? Here’s what
happened to some of them, according to a study from the website PopSugar.com.
First, the good stories:
One married couple from Canada won $11.2 million and gave most of it away to
charitable groups after making gifts to family members.
A school teacher won $111 million in a Powerball game over 20 years ago. He started a
summer camp for children.
A couple from Scotland won about $250 million five years ago. They set up a financial
program and made gifts to artists, sick children, and people in need in their
community.
Now, the not-so-good examples:
A couple in England won a prize worth almost $3 million. They bought a new home,
some expensive cars, went on trips and spent more money. Arguments and bad
investments led to debt and a break-up.
Other lottery winners burned through their money, avoided taxes and gave away
more money than they had.
According to the National Endowment for Financial Education, around 70% of lottery
winners who suddenly receive a large amount of money lose it within a few years.
Often, the hardest decision for lottery winners is whether to go public or remain
anonymous.
• How many people won the largest U.S. lottery prize ever offered?
• How much money does the U.S. federal government take from lottery winnings?
• What percent of lottery winners lose their money within a few years, according to the
National Endowment for Financial Education?
• What are your thoughts on the ways lottery winners spend their money?
• Does it surprise you that around 70% of lottery winners lose their money within a few years?
Why? Why not?
• What would be the first thing you'd buy if you won the lottery? Please explain your answer.
• If you were to win the lottery, would you prefer to remain anonymous? Why? Why not?
• Would you donate to charity if you bought a winning lottery ticket? Why? Why not?
• Do you often buy lottery tickets? If so, have you ever won any money? If not, why not?
• What would you do for your family if you bought a winning lottery ticket? Please explain your
answer.
• If you won several million dollars, what would you invest in and why?
• What would you say is the luckiest thing that ever happened to you? Please share your story.
• Winning a lottery may prove to be bad luck. - James Cook. What do you think Cook means by
this?