Financial Literacy: A Key Tool in Preventing Gambling-Related Harm
Gambling can be an enjoyable form of entertainment for some, but for others, it can become a serious financial and emotional burden. The New York Council on Problem Gambling (NYCPG) recognizes the crucial role financial literacy plays in preventing gambling-related harm and empowering individuals to make informed financial decisions.
Understanding the Link Between Financial Literacy and Gambling
Financial literacy—the ability to manage one’s personal finances effectively—is essential in today’s complex economic environment. Individuals with strong financial literacy skills are better equipped to budget responsibly, avoid excessive debt, and understand the risks associated with gambling. Unfortunately, those who lack financial literacy may be more vulnerable to impulsive spending, risky financial behaviors, and gambling addiction.
Problem gambling can lead to severe financial consequences, including drained savings, mounting debts, bankruptcy, and loss of assets. When individuals do not have a strong foundation in financial literacy, they may be less likely to recognize the warning signs of problematic gambling behavior until it is too late.
Financial Literacy as a Protective Factor
The NYCPG advocates for financial education as a key preventative measure against gambling-related harm. Here’s how financial literacy can serve as a protective factor:
- Understanding Gambling Odds and Risks: Educating individuals on the true odds of gambling games can help dispel myths about “winning strategies.” This could encourage a realistic approach to gambling as entertainment, not a source of income.
- Recognizing the Dangers of Credit and Debt: Many problem gamblers rely on credit cards, payday loans, or borrowing money to fund their gambling. Financial literacy programs teach the long-term consequences of high-interest debt and promote responsible borrowing habits.
- Budgeting and Expense Tracking: Learning how to create and stick to a budget can help individuals allocate their money responsibly and identify discretionary funds without jeopardizing essential expenses.
- Setting Financial Goals: When individuals have clear financial goals, such as saving for a home, retirement, or an emergency fund, they may be less likely to engage in gambling behaviors that could undermine their progress.
- Understanding the Emotional Connection to Money: Many individuals gamble as a means of coping with stress or financial hardship. Financial literacy programs can help individuals develop healthier financial habits and alternative coping mechanisms.
Taking Action: What Can Be Done?
The NYCPG encourages individuals, families, and communities to promote financial education as part of a broader strategy to prevent problem gambling. Schools, community organizations, and workplaces can incorporate financial literacy programs to equip individuals with the knowledge they need to make sound financial decisions. Some ways we can begin educating our communities on financial literacy is knowing the resources available.
- The Cost of Gambling
This is an interactive resource that helps identify how much money gambling costs individuals each year.
- GamFin
This is a financial counseling service available at no cost to New York residents. Sign up for counseling to address financial challenges caused by gambling.
- Personal Financial Strategies for Loved Ones of Problem Gamblers
This is a handbook that educates about budgeting, bankruptcy, repaying debts, and some immediate actions to take to minimize further financial damage.
The NYCPG provides access to confidential help and additional resources for those struggling with gambling harm and its financial consequences.
Conclusion
Financial literacy is more than just balancing a checkbook—it is a critical life skill that can help individuals safeguard their financial well-being and reduce the risk of gambling-related harm. By promoting financial education, we can empower individuals to make informed decisions, protect their financial futures, and reduce the negative impacts of problem gambling on individuals and families.
If you find yourself struggling with gambling harm, or if you suspect someone you know is facing such challenges, don’t hesitate to seek help. For 24/7 support, call the NYS OASAS HOPEline at 1-877-846-7369 or text 467369. Or choose your county using our interactive map on our NYProblemGamblingHELP.org HOME PAGE to see the contact information for the Problem Gambling Resource Center (PGRC) in your region.