According to the National Endowment for Financial Education, about 70% of lottery winners go bankrupt within a few years of winning. This is often because winners become reckless with their newfound wealth and give away too much money to family and friends, who may have unrealistic expectations of what they should be entitled to. Lottery winners can also become euphoric and lose all sense of reality, thinking they are invincible and powerful. Obtaining more money often leads to careless spending and the desire to get more money, and the greed can be destructive to the lives of winners and their families. Budgeting and financial planning are often major sources of conflict for married couples or families, and the presence of more money to spend can actually further heighten that issue. Winning the lottery can also lead to strained relationships and costly addictions such as drugs or gambling, which can burn through money.

It is important for lottery winners to seek help from professionals such as a financial adviser or attorney and to avoid making any hasty decisions. They should also avoid giving away too much money and squandering too much on depreciating assets such as cars, vacations, and gifts. Instead, they should focus on budgeting and financial planning to ensure their newfound wealth is managed responsibly and sustainably.