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I know you're being sarcastic, but there is truth to that. Without judgement, it is well-documented that those in poverty will spend, as a proportion of their i

I know you're being sarcastic, but there is truth to that. Without judgement, it is well-documented that those in poverty will spend, as a proportion of their income, 20 or 30 times as much on lottery tickets as someone who is rich. Now they have their reasons, I think a lottery ticket lets one dream what life could be like, at least until the draw happens, but the truth is their financial situation could be much better if they chose a different hobby.

1659447091 2y ago
> but the truth is their financial situation could be much better if they chose a different hobby. Is this the new "Millennials would be able to buy a house if they would stop buying a $3.50 coffee"?
- WorkerBee28474 2y ago
  No, of course not. Obviously if a poor person spends up to 5% [0] of their income on lottery tickets that will have no impact on their financial situation at all. There's no way that changing that behavior could improve their life; 5% is just too small to matter. [0] https://fortune.com/2024/04/04/lottery-tickets-poor-rich-income-powerball-mega-millions-jackpot-odds-les-bernal-stop-predatory-gambling/ https://fortune.com/2024/04/04/lottery-tickets-poor-rich-inc...
  - 1659447091 2y ago
    From my experience*, the lottery tickets they buy most are scratch-off. And every once in awhile they spend $2 and win $15-$20 (or $13-$18) then use that to buy "luxury" items; cigarettes, beer, candy for the kids or tacos from a taqueria or were able to make an extra lay-away payment. They still (I assume) end up losing more in the long run, but instead of saving that $2 a few times week to be able to have the $20 at the end of the month, they get a little bit of enjoyment from a crap situation. It's more rewarding to be able to get the items they were not planning to have and a little treat, as opposed to the sheer depression of thinking, if they saved that $2-8 a week, then in a month they can buy treats for their kids... *Part of my childhood was living "on the other side of the tracks", my family wasn't rich, but we had more than many I went to school with. A much richer school district lines split the neighborhood - I wasn't on that side. Many kids at my school probably were in the poorest zipcodes. Most of them were on food-stamps and free-lunch, working parents (or parent); they didn't spend frivolously, goodwill, swap meets and garage sales is where their clothes came from. My direct experience was w/ couple families I spent time with and saw the result of winning scratch offs. That was when they would splurge on "luxuries". It was not about striking it rich and fantastical dreams of yachts; It was probably that experience which taught me the most about being practical and how to stretch a dollar.
- anon291 2y ago
  You know it sounds silly, but it is broadly correct. The coffees are inconsequential, but the mindset change is not. I have seen it in my own family. People given the same opportunities, same life, same family background, and yet outcomes are different based on what you value. Those who are often called 'cheapskates' end up much better off than those who spend more wantonly. Everyone made a choice. It's not the lottery tickets alone, it's the net result of having a small inclination to pay for things that you could have forgone. Over time, it does result in a net difference. It's like how your 401k will end up substantially differently if you invest in a fund with 0.01% management costs v 1%. Yes it's 'only' a hundred or so a year, but it adds up.

1659447091 2y ago

> but the truth is their financial situation could be much better if they chose a different hobby. Is this the new "Millennials would be able to buy a house if they would stop buying a $3.50 coffee"?

WorkerBee28474 2y ago
No, of course not. Obviously if a poor person spends up to 5% [0] of their income on lottery tickets that will have no impact on their financial situation at all. There's no way that changing that behavior could improve their life; 5% is just too small to matter. [0] https://fortune.com/2024/04/04/lottery-tickets-poor-rich-income-powerball-mega-millions-jackpot-odds-les-bernal-stop-predatory-gambling/ https://fortune.com/2024/04/04/lottery-tickets-poor-rich-inc...
- 1659447091 2y ago
  From my experience*, the lottery tickets they buy most are scratch-off. And every once in awhile they spend $2 and win $15-$20 (or $13-$18) then use that to buy "luxury" items; cigarettes, beer, candy for the kids or tacos from a taqueria or were able to make an extra lay-away payment. They still (I assume) end up losing more in the long run, but instead of saving that $2 a few times week to be able to have the $20 at the end of the month, they get a little bit of enjoyment from a crap situation. It's more rewarding to be able to get the items they were not planning to have and a little treat, as opposed to the sheer depression of thinking, if they saved that $2-8 a week, then in a month they can buy treats for their kids... *Part of my childhood was living "on the other side of the tracks", my family wasn't rich, but we had more than many I went to school with. A much richer school district lines split the neighborhood - I wasn't on that side. Many kids at my school probably were in the poorest zipcodes. Most of them were on food-stamps and free-lunch, working parents (or parent); they didn't spend frivolously, goodwill, swap meets and garage sales is where their clothes came from. My direct experience was w/ couple families I spent time with and saw the result of winning scratch offs. That was when they would splurge on "luxuries". It was not about striking it rich and fantastical dreams of yachts; It was probably that experience which taught me the most about being practical and how to stretch a dollar.
anon291 2y ago
You know it sounds silly, but it is broadly correct. The coffees are inconsequential, but the mindset change is not. I have seen it in my own family. People given the same opportunities, same life, same family background, and yet outcomes are different based on what you value. Those who are often called 'cheapskates' end up much better off than those who spend more wantonly. Everyone made a choice. It's not the lottery tickets alone, it's the net result of having a small inclination to pay for things that you could have forgone. Over time, it does result in a net difference. It's like how your 401k will end up substantially differently if you invest in a fund with 0.01% management costs v 1%. Yes it's 'only' a hundred or so a year, but it adds up.