Lottery Logic: Lump Sum vs. Annuity Economics Activity | Present Value, Financial Literacy, Social Studies Game

Bring real-world decision making into your classroom with Lottery Logic, a fun and interactive economics activity! Perfect for middle and high school students, this financial literacy and social studies game introduces the concepts of lump sum vs. annuity, the present value of money, and the time value of money in a way students won’t forget.

🎲 How It Works

• Students receive scratch-off lottery tickets (printable).

• One “winner” must decide: take the $10,000,000 lump sum today, or spread it out with a $1,000,000 annuity for 20 years.

• Using the present value formula, students explore why money today is worth more than money tomorrow.

• Teachers can guide discussion on risk vs. reward, inflation, and financial decision making.

✅ What’s Included

• Printable lottery tickets

• Step-by-step instructions for making scratch-off boxes (marker or DIY paint method).

• Clear, student-friendly explanation of the present value of an annuity.

• Teacher discussion prompts for connecting to real-world economics and current events.

🎯 Skills Covered

• Economics for Kids and Teens

• Present Value of Money

• Time Value of Money

• Financial Literacy

• Decision Making & Critical Thinking

This resource works great in:

• Middle School Economics or Social Studies classes

• High School Financial Literacy or Personal Finance lessons

• Homeschool co-ops looking for hands-on, interactive learning

✨ Make your students feel the thrill of winning the lottery — and then help them learn the logic behind making the smarter economic choice!