The Odds of Americans Gambling Too Much On the Super Bowl Are at All Time Highs

The true cost of gambling on the Super Bowl instead of investing.

The increased legalization of sports gambling has made it hard to watch any sport these days without constantly hearing about the betting lines. This year it’s been estimated that close to $20B will be gambled on the Super Bowl. This comes at a time when the median retirement savings is less than $90,000 per family and credit card debt is at an all-time high. The true cost of this $20B is outlined below:

• Credit Card Debt: Credit card interest rates are near 30 percent, which means that if this money were used to pay off your credit card debt, then it would be worth an additional $6B. Paying off credit card debt isn’t nearly as exciting as betting who will win the game, score the first touchdown, or the length of the national anthem, but it’s a far better use of your money.

• Investing: Now let’s focus on increasing that retirement savings amount. If we were to invest that $20B in the stock market with a 10 percent return for the 20 years, it would have approximately $135B. Even if we spread that amount like peanut butter across the 15 million households who will be gambling on the big game, it would add approximately $9,000 per retirement account, which may not seem like a lot, but it’s still a 10% increase from the current median balance of $90,000.

If you can’t resist the urge to gamble, then you should at least limit the amount of your wager or “bet responsibility,” as mentioned at the end of all gambling advertisements. The only way to actually bet responsibly is to gamble with money that you can afford to lose, and in my opinion that means you are financially independent, which is not the case for most people. That being said, if after reading this you still feel compelled to gamble and aren’t financially independent, then you should at least limit yourself to $50 and skip Starbuck’s for the week, but you would be far better served paying off credit card debt or investing.

If you are looking for a financial planner after Super Bowl Sunday, then schedule a free introductory meeting below. For less than $5/day, Walk You To Wealth is the most affordable way to access professional help.

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Disclaimer: The information in this post is provided for your convenience only and is not intended to be treated as financial, investment, tax, or other advice. The information is intended to be educational and is not tailored to the investment needs of any specific individual.  It is also not intended to be relied upon as a forecast and is not an offer or solicitation to buy or sell any securities or to adopt any investment strategy.  The opinions expressed are those of the author.  Reliance upon the guidance and information in this presentation is at the sole discretion of the individual.