By Aodhán Doyle SYRACUSE, N.Y. (NCC News) — Tuesday’s Mega Millions jackpot of $1.537 billion was one of the largest lottery prizes in United States history. If the winner, who has yet to claim their prize and has 180 days to do so, chooses to take the lump sum cash option, they’ll only receive
According to the Review of Economics and Statistics, however, winners probably should start keeping better track of their finances. A study conducted by the Review shows that roughly one-third of lottery winners go broke within five years of claiming their prize.
“You’re probably already impulsive as it is to buy lotto tickets, if not more than one,” said Syracuse University Psychology Professor Dr. Stan Treger. “So if an impulsive person gets a large sum of money, what do you think they’re going to do?”
Treger, who specializes in social psychology and human behavior, feels humans just don’t do a very good job of predicting future events and therefore, make poor decisions.
“You might think you’ll be overjoyed for ever and ever,” Treger added. “We actually have a really bad idea of how we’re going to be spending the money and how we’re going to be reacting with the money. In essence, we don’t know ourselves as much as we really think we do.”
The last two years have seen some of the largest lottery jackpots in American history thanks to rule changes implemented in 2016 by Powerball and 2017 by Mega Millions. With fewer winners resulting in larger jackpots, the appeal of an enormous advertised number has resulted in even more people buying tickets on impulse, which, as Treger notes, is an ingredient in the recipe for bankruptcy.
Ask any random American on the streets and you can get a sense of that false confidence that their money will last forever, regardless of spending habits.
“First thing, I’d probably have to buy my mom and dad a house,” said Ryan Johnson when asked what he’d do if he won Tuesday’s jackpot. “Then, a bunch of Ferraris.”
Others, however, seem to have a better sense of their priorities.
“I think I would pay off my debt,” said Nicole Nimmons, a nurse at Crouse Hospital. “And, like, get A1 credit.”
One big winner who seemed to make the most of their winnings was Tarea Teasley of Syracuse, who won $10 million off a scratch ticket she purchased in 2016. Teasley put the money toward her children’s college education, as well as returning to school and continuing her own education.
