A resource sheet created for the Investing vs Gambling workshop — giving students a single, scannable reference that pulls the most important terms, comparisons, and examples into one place so they can revisit the concepts long after the session ends.
Student Resource Sheet
Investing vs Gambling
Terms
| Gambling | The act of risking money or valuables on the outcome of a game or uncertain event. |
| Investing | Committing money or resources toward something expected to generate future financial growth or personal advantage. |
| Interest Rate | When you borrow money, interest is the fee charged for using someone else's funds. When you save, it becomes the return you earn on the money you set aside. |
| The Rule of 72 | A simple math formula that estimates how long it takes for your money to double at a given interest rate. |
| Buy Now, Pay Later (BNPL) | Buy now, pay later (BNPL) is a way to buy something today without paying the full amount upfront — instead, the cost is broken into smaller payments made over a set period. |
| Annual Percent Rate (APR) | The percentage that represents how much it costs you to borrow money over an entire year. |
Investing vs Gambling
| Gambling | Investing | |
|---|---|---|
| Core action | Risking money on a bet | Committing money for a return |
| Outcome driven by | Chance | Research, time, and strategy |
| Time horizon | Immediate — win or lose now | Long-term — grow over time |
| Expected return | Negative — the odds are always mathematically stacked against you. Over time, you will almost always lose more than you win. | Positive and improving — time is your biggest advantage. The longer your money stays invested, the more likely it is to grow. |
| Do you own anything? | No | Yes — a slice of a company, a bond, a property, or a skill |
The Psychology of Gambling
| Sensory Tapping | Using engaging audio and visual effects — such as flashing lights, sound effects, and animations — that hold a player's focus and encourage longer play sessions. (Gateway Foundation, 2024; Robinson, 2018) |
| Surge of Dopamine | This is the brain's built-in reward system. A chemical released in your brain that gives you a “rush-like” feeling of excitement or thrill. Dopamine levels vary the most when we feel unsure if we will be rewarded. Surges happen when you win and when you almost win. (Gateway Foundation, 2024; Robinson, 2018) |
| Near-Wins | Almost winning can be even more thrilling, activating the same brain areas. Because the same brain areas are activated, your brain cannot tell the difference between winning and almost winning. (Zald et al., 2004; Robinson, 2018) |
| The Tolerance Trap | With repeated gambling, the brain adapts, and the same activities stop producing the same rush. What once felt thrilling begins to feel ordinary, pushing you to bet more and take greater risks to recapture the rush. (Gateway Foundation, 2024; Griffiths, 2005) |
The Rule of 72
72 ÷ Interest Rate = The Number of Years to Double Your Money
| Interest Rate | Math | Years to Double |
|---|---|---|
| 1% | 72 ÷ 1 | 72 years |
| 4% | 72 ÷ 4 | 18 years |
| 6% | 72 ÷ 6 | 12 years |
| 8% | 72 ÷ 8 | 9 years |
| 10% | 72 ÷ 10 | 7.2 years |
Example: At age 15, with a parent or guardian's help, you open a savings or investment account and deposit $50 every month. You never stop. By age 65, here's what those contributions could grow to based on the interest rate.
| Interest Rate | Total You Deposited | Money “Created” by Interest | Value at Age 65 |
|---|---|---|---|
| 1% | $30,000 | $9,497 | $39,497 |
| 4% | $30,000 | $46,753 | $76,753 |
| 6% | $30,000 | $112,471 | $142,471 |
| 8% | $30,000 | $249,694 | $279,694 |
| 10% | $30,000 | $554,222 | $584,222 |
This chart is NOT: financial advice, telling you to go invest your money right now, or a guarantee of any return.
Buy Now, Pay Later (BNPL)
BNPL can make borrowing feel free, but extended plans can quietly charge you up to 36% interest per year (APR).
Example: You decide to purchase a MacBook Air laptop while earning $15/hr part-time. You decide at the checkout that you want to use the BNPL option. Here is how the Rule of 72 works on debt.
| Financing Option | APR | Term | Monthly Payment | Total Interest Paid | Total Cost After Payoff | Hours to Pay Off (@ $13.29/hr post-tax) |
|---|---|---|---|---|---|---|
| Pay in 4 (Klarna/Afterpay) | 0% | 8 weeks | $265.36/payment | $0 | $1,061.44 | 79.9 hrs |
| Affirm Monthly | 15% | 24 months | $51/mo | $173 | $1,234.44 | 92.9 hrs |
| Affirm Monthly | 30% | 48 months | $38/mo | $784 | $1,845.44 | 138.9 hrs |
*Approximate figures displayed
The 48-month MacBook plan costs nearly 59 extra hours of work — that's over a month of part-time shifts — just in interest. By the time you pay it off, the laptop is already two generations behind.
© 2026 ChaChang LLC. All Rights Reserved. For educational use only. This material does not constitute professional advice.