The biggest mistake lottery winners make (Level 1)

Winning the lottery is a dream for many people. In 2016, the US Powerball had a prize of over $1 billion. However, winning is very rare. In fact, you are more likely to be hit by a meteor than to win the jackpot. If you do win, life can become complicated. Experts say you should hire a lawyer immediately to protect your money. It is also important not to spend everything at once. Winners must choose how to receive their money. The first option is an "annuity." This pays the money slowly over 30 years. It is a safe choice because it provides steady income to pay bills and debts. The second option is a "lump sum." This gives you all the money at once, but the total amount is smaller. If you take the lump sum, you can invest it in the stock market. Over time, invested money can grow huge through "compound interest." Interestingly, you do not need to win the lottery to be rich. If you invest small amounts of money every day instead of buying lottery tickets, you could become a millionaire by the time you retire.