Tackling poverty is not an easy task, especially if you are going through it alone and don’t have a strong support system. That being said, that path out of poverty begins with accountability. It is important to take stock and face your challenges head-on. As you begin to set goals, accountability will help you stay on track and continue in the right direction.
How to Get out of Poverty Mentality
Poverty mentality refers to someone’s mindset that views extra resources as an opportunity to spend rather than save for the future. Instead of using the funds to create momentum that leads to future gains, someone with a poverty mentality opts for immediate gratification. In addition, people with a poverty mindset may believe that their financial situation will never change. This is especially true for those who experience generational poverty, which means that a family has been in poverty for many generations, and it is the only financial situation that they have ever experienced.
The best starting point to work on getting out of a poverty mentality is to spend more time around people who have more positive and uplifting views about finances. By doing this, you are able to better recognize the contrast between how people view money and your own finances. Those struggling with a poverty mentality should also seek out the help of those close to them and have them remind you to broaden their financial perception. Simply changing a few negative thoughts about finances can trigger meaningful changes.
The Poverty Cycle
The poverty cycle occurs when lower class families become trapped in a state of poverty. Research has found that the cycle will typically begin to take shape after two or three generations. Oftentimes, after three generations have lived below or at the poverty line, there are no surviving ancestors who can serve as an example of what it means to get out of and live out of poverty.
There are also many other factors that make it hard for individuals to break the cycle. For example, those experiencing poverty may not have the money, education, or other resources necessary to thrive. In other words, individuals who are in poverty experience certain disadvantages as a result of their poverty, which in turn increases their chances of staying in poverty. This can result in the poor remaining in poverty throughout their lives and well into the next generation.
Breaking the Cycle of Poverty Through Education and Job Training
Breaking free from the cycle of poverty can be one of the hardest things that a person can try to do. For many, the cycle of poverty has been passed down from one generation to the next. Thankfully, there are ways that people can break the vicious cycle of poverty through education and job training programs.
Educating oneself. The less you know about basic financial literacy, the more susceptible you are to getting taken advantage of. This is especially true when most schools don't currently provide educational opportunities in financial literacy. Seeking out education on financial literacy and better understanding your options and rights when it comes to financial products and institutions can help you make sure you get the best deal. There are many free resources and services available today that can provide the knowledge to break the poverty cycle. Lifting Up STL is working hard to connect people throughout the community with mentors, educational programs, and other resources that can expand your knowledge and help you feel more confident about handling your finances.
Take advantage of job training programs. In addition to Lifting Up STL, many local community centers, libraries, and schools offer free job training programs to the public. These programs are a wonderful way to learn new skills that are needed in the labor market and connect with potential employers. Taking advantage of nearby job training opportunities can provide people with a path to full-time jobs that pay more than minimum wage and offer benefits such as health care and dental insurance.
Barriers to Getting out of Poverty
All too often, people trying their hardest to get out of poverty are confronted with barriers that seem impossible to overcome. One of the biggest struggles is that many of the tools needed to escape poverty require money that people in poverty don't have. Everything from continuing education, professional development, healthcare, and childcare can provide relief, but they come with a price. For example, parents with young children often lack the availability and finances for good quality, affordable childcare. This means that at least one of the parents has to stay home to take care of the children. This becomes even more challenging when there is only one parent.
Other barriers to moving out of poverty include lack of employment opportunities, educational failures, poor health and criminal records. Time and time again it has been proven that stable employment is a crucial factor in financial mobility and proves to be the main defense against poverty. Once families are able to overcome these barriers, the likelihood of them slipping back into poverty is very slim.
Steps to Get out of Poverty
In addition to education and job training, there are two other main steps that people should take in order to get out of poverty. The first step involves addressing mental attitudes around finances and spending money. One of the hardest parts of breaking the cycle and getting out of poverty is changing your mindset around money. A person’s money habits are strongly influenced by our parents’ money habits and lessons. For many second or third-generation families living in poverty, they have been developing negative thoughts and anxiety around spending money for decades. It can be difficult for people living in poverty to associate spending money with positive behavior. However, by viewing your financial situation as only a temporary status, rather than a lifelong struggle, you can start to understand that income mobility is a possibility. Making the right decisions and being smart with your finances can improve your chances of improving your circ*mstances and climbing out of poverty.
Finally, reinforcing positive thoughts around your personal finances and improving financial literacy are good first steps, but only parts of the equation. It is also important to find and leverage local community resources. At Lifting Up STL, we understand that it can be difficult to navigate various programs and application processes. One of our goals is to provide local residents with the guidance they need to take full advantage of available resources.
