Buying lottery tickets is a small investment with the potential for a big return. That’s what lottery marketing campaigns count on, says Adam Ortman, a Denver-based consumer psychologist and president of Kinetic319, an advertising agency. “Lottery marketing expertly leverages the fear of missing out – FOMO,” he says. “People feel that if they don’t play, someone else will.”

Lotteries first appeared in the Low Countries in the 15th century as a way to raise money for town fortifications and to help the poor. By distributing tickets with various numbers and symbols and arranging them in a pattern, they made winning seem both attainable and life-changing.

As the popularity of lotteries spread throughout Europe, they became an important source of tax revenue. In colonial America, lotteries played a major role in financing public works projects, including roads, libraries, churches, canals and schools.

In modern lotteries, winners are determined by drawing numbers from a pool of entries. The prize money varies, but a percentage of the total sales is generally reserved for a single top-prize winner. In addition, a portion of the proceeds may be used for operating expenses and promotion. Some states disperse lottery funds more broadly, using them to fund higher education and other community and business initiatives, along with adding to the general state fund.

When playing a lottery, make sure to review your finances before jumping in. And don’t let the excitement of a possible win sway you from your goals and priorities.