Money-Smart Monday

with John Lanza

Hello, friends,

I'm back from my first Chicago Marathon. While this race wasn't a notion at the time, I understand why Frank Sinatra sang that it was "My Kind of Town."

Great course. Great crowds. Like Boston, Chicago shows up. (Better October than February! 🥶) And big thanks to my wife for being my top supporter (and photographer).

Now onto your Money-Smart Monday ideas.

On gambling

I remember when ESPN quietly added betting lines under daily scores. One day, I'm checking results; the next, I'm being nudged to wager.

I'm no anti-gambling zealot. I've long run family pools for fun. (And a little bit of money.) We brag about our wins and forget our losses. (I still talk about picking Valpo to make the Sweet 16. And I stay mum about my Syracuse pick the year Richmond ousted them in the first round. It hurts to this day.)

But 2018 changed the gambling landscape in America. The Supreme Court opened the floodgates when it ruled that states were free to legalize sports betting. It's a massive business. And now it feels like we're beta testing another national experiment on young people—just like we did with social media.

Gen Z economist and Let's Appreciate Podcast host Kyla Scanlon describes how we're becoming Gamblemerica​. Gambling apps prey on the same cognitive weaknesses that make social media addictive: the dopamine rush, illusion of skill, false confidence after a win. It's a dangerous loop.

This reminds me of something financial psychologist Brad Klontz told me​ on The Art of Allowance Podcast—that he worried more about his son's early investing wins than losses. Because success can breed delusion.

That's the blurry line our kids now face: speculation dressed up as investing and investing gamified into speculation. With popular platforms like Robinhood mixing the two by embedding sports betting into its "prediction markets," the line promises to blur even further.

So add "gambling literacy" to the growing list—financial, digital, media—that our kids will need. The U.K., with its large and easily accessible gambling market, has learned this lesson the hard way. Research now shows that people with severe gambling problems are about four times more likely to attempt suicide, and only recently has the U.K. begun to treat gambling as a public health issue by tightening regulations and funding treatment.

Perhaps "Please Play Responsibly" isn't enough. Maybe we need to follow the playbook we used when it became clear smoking was killing people: "Gambling is addictive. Play with caution."

I'd love your thoughts. Do you see gambling creeping into your family's world? Am I overreacting?

How much allowance should I give my child?

A simple rule of thumb for The Starter Allowance that I like is ODAWPA​, or "One-Dollar-Per-Week-Per-the-Age-of-Your-Child."

But as kids are worth it! author Barbara Coloroso reminds us, any allowance amount is ultimately a judgment call. To find a number that works for you and your family, ask yourself:

• How much can I afford?
• How much do I want to give?
• How much can my child handle?
• What's it for?

These guidelines can be particularly useful as you graduate from The Starter Allowance to The Breakthrough Allowance​.

Ultimately, Barbara says, we have to use our own wisdom. Allowance isn't a math problem; it's an art. Don't wait for the perfect number—just start. Progress beats precision every time.

Just a quote before I go

Just a painting before I go

After the marathon, I was fortunate to see Edward Hopper's Nighthawks in person at Chicago's Art Institute.

Hopper is one of my favorite artists. I've seen his work in books a hundred times, so seeing his approach to brushwork up close was a treat.

More ideas I found interesting

➡️ The Art of Spending Money by Morgan Housel is so good I'm slowing down to savor it.

➡️ Charlie Munger's "The Psychology of Human Misjudgment"​ speech is enlightening.

➡️ ​This—not Nighthawks—is my favorite Hopper painting.

Until next week, enjoy the journey!

John,
Your Chief Mammal

📗 Get The Art of Allowance (for parents)​
📚 Get the "Share & Save & Spend Smart" series (for kids)​
🫱🏻‍🫲🏽 Become a partner or book me to speak (for businesses)

P.S. Please consult with a financial or investment professional before making any decisions that might affect your financial well-being.

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