It's also why everyone who wins the lottery blows through it all in a couple years, they think they won WAY more than they actually did.
indeed... and the fact most are understandably clueless at financial management.
After all, hookers and blow has a fairly poor ROI.
Actually, the main problem with many lotto winners is they end up trusting the wrong people and get scammed. Another problem is that they end up being too generous with family and friends who are looking for handouts.
Yes, I do personally know one case where what you said is the exact description.
The thing with lottery is that most winners are people previously just living from paycheck to paycheck, so they think they need to hire a "professional" and there the problems begin -depending on what kind of "professional" they end in the hands-.
Not all of them go on a spending spree, some don't even change their lifestyle significantly but still end up losing all or most of the money due to bad decisions in trusting the wrong people/"professionals".