The Real Value of Buying a Lottery Ticket
When the lottery jackpot hit $1.787 billion, our family did something unusual for us: we bought a lottery ticket. Now, as a financial planner, I’ll be the first to admit that purchasing a lottery ticket is not a sound investment strategy. The odds are stacked against you, and the expected return is effectively zero. But that $2 purchase gave us something else entirely, something you can’t measure in dollars.
It gave us the chance to dream.
The Conversation That $2 Sparked
From the moment we picked up that ticket until the winning numbers (not ours) were drawn, our family had a running conversation: What would we do with that kind of life-changing money?
To keep it realistic, we cut the prize in half, since taxes will quickly claim a large share. Then we asked the kids: “If you suddenly had nearly a billion dollars, what would you do?”
The answers were priceless. One of our children said, with complete sincerity, “I’d give it all to charity.” As parents, we were proud of that generosity. But we also nudged the discussion further: What about something for yourself, your family, or your friends? That opened the door to more imaginative answers, such as supporting loved ones, building dream homes, funding projects that matter, and still giving back in meaningful ways.
In that moment, the lottery ticket had already more than paid for itself. It created a conversation about priorities, generosity, and joy.
Why a Lottery Ticket Is Not an Investment
Here’s the reality: a lottery ticket is not a wealth-building tool. The odds of winning this lottery were about 1 in 292 million, according to the Multi-State Lottery Association. Statistically, you are far more likely to be struck by lightning than to win the jackpot, as noted by the National Weather Service.
Real financial security doesn’t come from chance. It comes from steady saving, disciplined investing, and aligning your money with your goals. If your financial plan relies on lottery winnings, it may be time for a new plan.
But that doesn’t mean the ticket has no value.
The Value of Using a Lottery Ticket to Teach Kids About Money
A lottery ticket can also be an unexpected teaching tool. Talking about what to do with a billion-dollar jackpot gives parents an easy way to introduce money concepts without it feeling like a lecture. Kids love to imagine, and those conversations can open doors to important financial lessons:
Taxes and reality checks: When you explain that half the jackpot would go to federal and state taxes, it introduces the idea that income may be shared with the government and what taxes may be used for.
Needs vs. wants: A billion dollars makes it easier to distinguish between essential expenses (housing, food, healthcare) and fun extras (vacations, cars, luxuries).
Charity and generosity: As my own child demonstrated, kids may think about giving. This is a great way to talk about how money can be used to help others through donations, volunteering, or supporting causes they care about.
Saving and investing: Even when talking about imaginary winnings, parents can explain why people who receive large sums sometimes lose it quickly without a plan. This naturally introduces saving, investing, and financial responsibility.
Risk and odds: The fact that some lottery odds are about 1 in 292 million makes it clear that gambling is not a strategy for financial success. It also reinforces the importance of making smart financial choices in real life.
Conversations like this help kids build financial literacy and values, setting them up for future success.
The Non-Monetary Value of a Lottery Ticket
As adults, our minds often go to the practical:
Paying off mortgages or student loans
Funding retirement savings
Setting aside money for kids’ college tuition
Those are all important, but they are also predictable. The fun of a lottery daydream is that it removes limits. Suddenly, you can think beyond your budget. What would you do if money were no obstacle?
Maybe it’s:
Traveling the world with extended family
Dedicating your time to a cause or organization that matters to you
Focusing on a project or idea that you just haven’t had time for
Perhaps it can prompt conversations that enable you to learn something new about your spouse. Perhaps it’s an opportunity to check in to see how your values around money align.
You don’t need to wait for a lottery jackpot to think this way. In fact, financial planners often use a similar exercise with clients: “If money were no object, what would you do?”
This kind of thinking helps people uncover true priorities: time with family, travel, education, philanthropy, or creative pursuits. From there, we can design a plan that aligns real-world resources with those values.
The truth is you don’t need a billion dollars to start living in line with your goals. A lottery ticket just happens to be a fun, accessible way to spark the conversation.
The Moment of Truth
Of course, the story usually ends the same way: you check the numbers and discover you didn’t win. And that’s okay. Because what you really bought wasn’t a chance at riches. It was a chance to dream, connect, and reflect.
And for our family, that’s the best $2 purchase we’ve ever made.
My name is Tim Melia, and I am a CERTIFIED FINANCIAL PLANNER® Professional. I would be happy to answer any questions you may have or discuss how this topic impacts your life and financial goals. Feel free to email me at tim.melia@emboldenfp.com. If you would like to learn more about working with Embolden Financial Planning LLC, please schedule a free, virtual introduction meeting.
All written content on this website or any social media platform is for informational purposes only. None of the information provided is intended as investment, tax, accounting, or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. All information provided should be discussed with a registered advisor, accountant, or legal counsel prior to implementation. Opinions expressed herein are solely those of Embolden Financial Planning LLC (“EFP”), unless otherwise specifically cited. Presented material is believed to be from reliable sources and no representations are made by our firm as to another parties’ information accuracy or completeness.
References
Multi-State Lottery Association (MUSL). Powerball Odds and Game Rules. https://www.powerball.com/powerball-prize-chart
National Weather Service. Lightning Safety Facts. https://www.weather.gov/safety/lightning-odds
