Financial Literacy Lessons Help Kids Steer Clear of Problem Gambling Risks

April’s designation as National Financial Literacy Month highlights the importance of equipping individuals with the knowledge and tools to make informed financial decisions, fostering economic stability and independence. However, this month also serves as a crucial reminder of the financial risks posed by problem gambling, a behavior that can devastate both adults and adolescents. Problem gambling often leads to significant financial losses, emotional distress, and strained relationships, with adolescents particularly vulnerable due to their propensity for risk-taking and lack of financial experience. Research shows that gambling addiction in youth can result in long-term consequences such as debt, poor educational outcomes, and even suicidal ideation. By integrating financial literacy education with awareness about the dangers of gambling, families and communities can empower individuals to avoid these pitfalls and build healthier financial habits.

Many schools today don’t provide students with a comprehensive understanding of essential financial concepts, such as earning a paycheck, managing expenses, and making smart money decisions. This makes it even more important for parents to take the lead in teaching their children about financial literacy. Everyday moments, like using a credit or debit card to make a purchase, can be valuable teaching opportunities. Without proper explanation, kids may not realize that money must first be earned, bills need to be paid, and saving should come before spending on non-essentials. One simple way to introduce budgeting is by teaching the 50/30/20 rule—a method that divides income into three categories: 50% for needs, 30% for wants, and 20% for savings or debt repayment. By starting these conversations early, parents can help their children develop the skills and habits needed to make informed financial decisions throughout their lives.

• Needs: 50% of your income goes towards food housing, bills, and transportation.
• Wants: 30% of your income goes to dining out, shopping for extras, and entertainment.
• Savings: 20% of your income should automatically go into a savings account.

Teaching kids and adolescents about the concept of risk is an essential part of financial literacy, as it helps them understand the potential consequences of their decisions and equips them to make informed choices. Gambling, at its core, involves wagering money or anything else of value on uncertain outcomes, which can be entertaining for some but carries financial risks that need to be understood. By incorporating lessons about risk into financial education, parents and educators can help young people recognize the difference between calculated risks—such as investing or saving—and discretionary activities like gambling.

For example, when teaching budgeting strategies like the 50/30/20 rule, parents can introduce the idea of financial priorities and explain how gambling fits into the “wants” category of spending. They can discuss how to budget responsibly for discretionary spending while ensuring that needs and savings are prioritized. Similarly, when discussing credit cards or loans, parents can highlight how excessive gambling or impulsive spending can lead to financial strain and debt accumulation. These conversations help children develop a balanced perspective on managing money and assessing risks in all areas of life.

By framing gambling as a choice that involves risk, young people can learn to think critically about their decisions. They’ll understand that while some risks—like starting a business or saving for future goals—can lead to growth and opportunity, others require careful consideration to avoid unintended consequences. This distinction empowers them to make choices that align with their financial goals and values, whether they choose to gamble recreationally or not. Financial literacy becomes a powerful tool not only for building wealth but also for fostering responsible behaviors that support long-term financial well-being.

Where We Stand

Nearly three-quarters of American teens (74%) reported that they don’t feel confident in their personal finance knowledge. About the same percentage of teens (73%) said they wanted to learn more — music to our ears. Of those lacking confidence, 15% don’t know where to begin, and over half say they are learning.¹

How Children and Adolescents are Exposed to Gambling Concepts in Everyday Life

Children and adolescents are increasingly exposed to gambling concepts through various avenues, often in subtle or normalized ways. Video games, for instance, frequently include features like loot boxes—virtual items purchased with real money that provide randomized rewards. This mechanism mirrors gambling by encouraging players to spend repeatedly in hopes of obtaining rare or valuable items, fostering a similar psychological response to betting on uncertain outcomes. Additionally, many games simulate gambling environments, such as casino-style mini-games or token-based systems that replicate slot machines, further blurring the line between gaming and gambling. Beyond video games, children encounter gambling-like behaviors through social dares, friendly bets, and even scratch-off tickets given as gifts, which can introduce the thrill of risk-taking at an early age. These experiences may normalize gambling as a harmless activity, especially when paired with exposure to gambling advertisements on TV or online platforms. By understanding these influences, parents and educators can help young people critically evaluate these activities and make informed choices about risk and money management.

Problem Gambling Prevention Programs and Resources for Help in Florida: 888-ADMIT-IT

The Florida Council on Compulsive Gambling (FCCG) is a vital resource for addressing problem gambling in Florida, offering a wide range of prevention, education, and support services. Through problem gambling prevention and outreach programs tailored for youth, educators, and families, the FCCG provides critical tools to raise awareness about the risks of gambling and promote responsible decision-making.

The FCCG operates the 24/7, Confidential, and Multilingual Problem Gambling HelpLine in Florida – 888-ADMIT-IT – which serves as a gateway to free resources, including counseling referrals, financial assistance programs, and self-help tools for individuals and loved ones affected by gambling-related issues. With decades of experience and a neutral stance on legalized gambling, the FCCG remains committed to supporting Floridians at every stage of their journey, whether seeking prevention strategies or recovery assistance. For help or more information, call or text 888-ADMIT-IT today to connect with valuable resources and compassionate support.

1. Greenlight, Celebrate Financial Literacy Month with Your Kids and Teens, April 2021, https://greenlight.com/learning-center/spotlight-stories/celebrate-financial-literacy-month-with-your-kids-and-teens.