Wednesday, February 3, 2016

It's Expensive to Be Poor

If you find the Socioeconomic Status information interesting, I'd encourage you to look up some information on Ruby Payne.  She looks at poverty and helps offer an explanation of why poverty often continues across generations.  It's not just about money.  It's also about an attitude and a culture.

Below are some hidden rules that Payne points out:

As you can see, the outlook on money and the world is very different across SES.  When I read this graphic, I think of a lot of families I worked with during college.  I worked for the Division of Youth Services and most of the families I worked with were lower SES.  I couldn't understand why these families would have big screen tv's and their nails done, but didn't always have money to pay their electric bill.  Many times they would eat fast food, which is relatively expensive, and by the end of the pay cycle, there wasn't money left for even grocery staples.  These behaviors were right in line with the hidden rules Payne writes about.  

In lower SES situations, entertainment is highly valued (hence the electronics, eating out, and trips to the nail salon).  The belief is if you have it, you might as well spend it because it could disappear at any moment.  The focus was on the present, not on saving money for when the electric bill would come due.  Likely, someone was always in line to take their money (landlord, mechanic, bills, etc.).  
People are also highly valued in lower SES situations.  One article I read used the following example:  Lower SES families may find themselves being more okay paying $30 for a Halloween costume (translation: entertainment and pleasing a child) than $30 for a necessary textbook (less likely to value education or see how education can change their situation). 
I'm reminded of a student interaction I witnessed several years ago.  A school club was selling little trinkets to raise money for something.  A student I worked with had very little money and always seemed to be struggling to make ends meet.  When she came across this student club selling trinkets, she dug deep into her pocket, gathered her coins together and purchased an item.  I had mixed feelings: I was in awe of her generosity ~ she had very little herself, yet was willing to spend what she had to support a school club (putting people first).  I also recognized that she struggled to get daily needs met and was choosing to buy a key chain.  Again, I suspect someone was always in line to take her money (electric bill, school tuition, rent being due, etc.) so she followed the belief that if you have it, spend it.  

I am also reminded of the cost of being poor.  Ever wonder why despite social assistance programs, some families just aren't able to find their way out of poverty?  The truth is, it can be very expensive to be poor.  Here are a few examples:
  • Housing may be older, therefore less efficient which leads to more expensive heating and electricity bills.  
  • Not able to save for a down payment on a house, so forced to pay rent and not having the advantage of building home equity.
  • Vehicles may be older and require expensive repairs or reduced gas mileage.
  • Reliable transportation may be an issue, resulting in expensive cab rides or loss of a job due to not having consistent ways to get to work.  
  • Low paying jobs that require lots of hours trump pursuing higher education, therefore not being able to advance in a career.
  • Can't afford a washer/dryer, so time and money spent at a laundromat.
  • Access to fresh, healthy food is limited, so more fast food is consumed, which may lead to more health problems (obesity, lack of nutrition).
  • Lack of preventative health care, so a routine cavity turns into an expensive root canal because it couldn't be addressed sooner.
  • Overdraft in a checking account or can't pay off a credit card balance, so they get charged a bank fee or interest on credit card.  
  • Lower credit score often means a higher interest rate on loans.  
  • Can't afford a trip across town to do a big grocery trip, so they shop at local convenient stores where prices are much higher.  
  • No savings or emergency fund established/Poor credit score.  Only option is a payday loan (where interest is around 450%).  

Interesting stuff here.  And, important stuff to keep in mind when dealing with future students/clients who fall in a lower SES. 

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