$22M Lottery Winner Asks Dave Ramsey If He Should Tell Family
Many people dream of one day winning the lottery and having all of their financial problems fade away into the sunset. While winning a substantial amount of money can solve many issues, it can also create new ones.
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On an episode of The Ramsey Show, Dave Ramsey, bestselling author and personal finance and retirement expert, is joined by John Delony. A caller who wants to remain anonymous and identifies himself as simply “John” from Louisville, Kentucky, explains that he recently won the lottery but has kept it a secret to this point and he wants to know what he should do.
John’s Dilemma
When he won the lottery, John collected $22 million after taxes. To many, this would be a reason to celebrate and call up friends and family to relay the good news. John took a different approach and decided not to tell anyone other than his wife and a sibling.
After winning, John immediately did some research on other lottery winners. He discovered that one in 10 lottery winners lose their winnings or go bankrupt over the course of 10 years. A major reason for this is that once word gets out you’ve won, many friends and family members will come to you with monetary requests and investment ideas or expect you to cover certain costs.
John told Ramsey that he hasn’t told his two teenage daughters yet because he fears they will become “waiters.” He explained that his version of a “waiter” is someone who waits for their parents to die to inherit their money, which Ramsey and Delony both found amusing.
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John’s New Financial Situation
Before winning the lottery, John was smart with his money. He’s already paid off his mortgage and bought two Toyotas in cash, so he doesn’t have many significant debts to pay off. He also stated that he enjoys his job and plans to continue working there, which will help reduce suspicion that he’s come into a large sum of money.
John explained that spending the money and not raising suspicions has been challenging. After the passing of his wife’s relative, they received some inheritance funds. John and his wife have been using this as cover to spend extra money and care for family members.
He mentioned paying for his mother’s roof repair. When his mother asked how he could afford it, he explained that they came into a bit of money through that family member’s inheritance, and he would’ve wanted them to do this.
Ramsey’s Story
After hearing John’s story, Ramsey was impressed with how he handled winning the lottery. His winnings aren’t anyone else’s business, and John shouldn’t feel obligated to tell others about his good fortune. Even though he didn’t win the lottery, Ramsey can relate to John’s challenges.
Ramsey delves into his personal financial story. He said that after going bankrupt, he built significant wealth. By the time his kids were teenagers, the Ramseys were multimillionaires. Ramsey explained that they could buy whatever car they wanted or go on any vacation without being financially affected.
Like John, Ramsey also decided not to tell his children about their wealth immediately. He waited until they graduated from college so they already were becoming productive people and understood responsibility. Ramsey explained that his children got to decide how they reacted to the news. They could continue to be productive and generous people or they could become “waiters.”
If his children aren’t going to continue being productive members of society, Ramsey isn’t going to pass the money along to them. Overall, he said he was happy with how they responded and continued to live their lives. He offered some advice to John on how to prepare for that moment.
How To Prepare Your Children for the News
Ramsey congratulated John on being wise in his decision not to make the news public. He assured John that keeping the news from friends and family wasn’t strange, and he was doing them a favor. John must not be telling them because he’s realized that they can’t handle the news and is instead relieving them of the potential stress it would cause.
While Ramsey was already impressed with John’s handling of the winnings, he did have some advice. John has a chance to build lessons into his children now so that when the big conversation comes, they can handle it.
Delony also chimed in, saying John has a chance to plant seeds and teach his children what generosity is before revealing the fortune. An example Delony gave is going out to dinner and being served by a waiter, who likely isn’t making a lot of income. John can set an example for his kids by making that waiter’s day with a big tip.
Delony also stressed that it’s important for the children to understand that money isn’t their identity. When they realize that John has millions of dollars but still drives the same cars and gets up early to go to work, they will understand that they don’t need to change who they are because of how much they have.
Another piece of advice from Ramsey was to enjoy the money. It’s important to plan how you’ll gradually increase your spending to enjoy your life more. Spending more only slowly isn’t to reduce the shock to your children but to improve your life and partake in some charitable giving. Delony added that John can use the money to create unforgettable memories with his kids.
John noted that he’s not very needy and has only splurged by upgrading his patio furniture. However, he added that he has an investment team looking after most of his funds.
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This article originally appeared on GOBankingRates.com: $22M Lottery Winner Asks Dave Ramsey If He Should Tell Family
