Cycle of Poverty

[Administrator]

Were you surprised to hear about how being in poverty feeds staying in poverty – i.e: saving money on shipping every time, by paying with a lump sum for one year of amazon prime… Any other feedback on the cycle of poverty?

[Judith McGuinness]

I know from my child advocacy class that when you’re in poverty you don’t have many educational opportunities which would be able to raise you out of poverty so it cycles, becoming intergenerational. Also, people who have a high ACES score usually are engaged in more risky behaviors, such as smoking, excessive drinking and gambling which costs money and keeps them in poverty.

[Anastasia Warden]

I’ve heard about this before. For example, the fees (often quite large) that are charged folks who are late with payments and/or overdraft from their bank accounts help create an ever deeper hole for those with limited financial resources. Of course, this cycle is also perpetuated by the ease of getting a credit card and the higher interest rates charged to those without strong credit scores – coupled with higher finance charges for car and housing loans.

[Amy Aynedjian]

The idea that poverty perpetuates itself is alive and well.
According to 2017 statistics one in seven children in NJ live in poverty. This is a sad reality and the only way to break the cycle is through intervention. This could be where the public sector steps in and assists with rent, food, and medical bills.
I had a coworker who has worked since she was 28 at the same job making a decent salary yet can’t escape the poverty cycle. She now has 3 grandchildren and 2 children of her own all under one roof in order to pay bills together. I can see from the outside looking in how poor judgement money choices are perpetually made. Unnecessary long expensive vacations, newer vehicles requiring car payments and at times unnecessary day camp choices in the summer that are pricey. She is now 60 and should soon qualify for retirement however given her household income I doubt this will become a reality for at least another ten years. People get stuck in this cycle and it becomes multigenerational. Without intervention a family can continue to struggle to pay rent, basic bills and as Anastasia said paying off credit cards gets even more expensive! We as CASAs can hopefully influence a family who needs services and subsidized living to get what they need to thrive.

[Alondra Palacios]

I think it is interesting that many factors,besides monetary, contribute to the cycle of poverty. A person can have a decent job but because of factors like trauma and/or addiction, they fall victim to the cycle of poverty. Some people are fortunate enough to be able to access economic and social resources to help them break the cycle. Many others are not as lucky and thus the cycle continues.

[Suzanne Doll]

I agree with everyone that poverty is a cycle and is difficult to escape/overcome. For example, high interest credit card companies prey on consumers who may never be able to pay off credit card debt. People are often not educated regarding credit, banking, saving for retirement, budgeting and unfortunately, and never learn to save or spend wisely.

[Peter Manuel]

Good comments by everyone, about how much harder so many things are for the poor–getting credit etc, and something like a stint in jail, even for a few weeks, can be disastrous. My daughters each rented apartments in Brooklyn for a while, and I was amazed at all they had to provide–advance payments, documentation of job, of bank account with savings, previous recommendations etc–how could a poor person ever qualify for a rental? One daughter now works with ppl released from prison, who have no family, no job, no ID card of any sort (!), no place to live, no money — how are they possibly supposed to start a new life?

[mindy felixbrod]

It is not surprising to hear this and it is understandable on may levels– It is possible to rise out of poverty for your family but it takes discipline. The children raised in poverty may be more successful if they are not suffering emotional problems or mental illness. There is that great ( true ) movie that Will Smith is in called Pursuit of Happiness where he rose from poverty with his kid bc he was smart, and determined. Of course, living paycheck to paycheck is stressful but i have seen it happen in our restaurant business with immigrants who came here worked without any language knowledge but learned and grew and became successful restaurant owners on their own. They knew how to access services , get sponsorship etc… Those with mental illnesses or trauma that affects them will need lots of services and support and still its difficult be compliant when you are not well.

[Shama Thakkar]

I agree with everyone. Poverty is a vicious cycle. Poverty brings forth poverty and traps people into poverty unless the cycle is broken by external intervention. Such intervention is complex though as it involves the individual’s spending habits, socio-economic status, habits, etc.

[Cathy Skinner]

The cycle of poverty is a complex issue. Those that are living at the poverty level may struggle to keep food on the table, pay rent, get to a job (if they cant pay for transportation) or hold down a job due to such things as childcare. I think it would be beneficial for young kids to understand the management of money, in its simplest terms. If they grow up with the responsible concept of money, they can do their best to discipline themselves to budget when they become an adult.

[Author]

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