Lottery is an American tradition that contributes billions of dollars each year. Some play for fun, while others believe it’s their ticket to a better life. But if you’re thinking about playing the lottery, there are some important things to keep in mind before you buy your tickets.

Lotteries are a form of gambling, and the odds of winning are slim. While many people find the risk-to-reward ratio appealing, some research suggests that the habit of purchasing tickets can have a detrimental impact on your finances. In fact, a modest lottery habit of $20 per month can add up to tens of thousands in foregone savings over a working lifetime.

“Lottery marketing campaigns expertly capitalize on fear of missing out,” says consumer psychologist Adam Ortman. By presenting the purchase of a ticket as a minimal investment with a potentially massive return, these campaigns reduce the perceived risk while magnifying the reward. This is the key to triggering FOMO, as individuals are motivated by the fear that they will miss out on a rare opportunity to drastically improve their circumstances.

The post-World War II era was an ideal time for states to introduce lotteries, as they were a source of revenue that allowed governments to expand services like education and veteran’s health programs without raising taxes paid by state residents. In 2019, 45 states offer lotteries, and they are a critical component of most state budgets.

If you plan on buying a lottery ticket, make sure to review your finances and stick to your budget. And if you are finding that the lottery is becoming more of a compulsion, be aware of the warning signs and seek help before your addiction worsens.