You gotta be in it to win it...but what happens after the win? 

Answer: About 33%

Questions:

• Since you now know the answer to this question, what financial advice would you give to a new lottery winner? 
• After winning the lottery, if you were given a choice between a lump sum payment or receiving payments over time, what would you choose? Why?

Here are the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (CNBC): 

The CFP Board of Standards says nearly one-third of lottery winners eventually declare bankruptcy, and lottery winners are more likely to declare bankruptcy within three to five years than the average American.

That’s often because winners can become reckless with their newfound wealth. In order to avoid a harsh fate, lottery winners should not make any hasty decisions.

--------------

Yanely's FinCap Friday episode,  Powerball Tax Bill, tackled another consequence of winning the lottery. 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

More posts by Tim