Title: Cycle of poverty - Wikipedia
Headings: Cycle of poverty
Cycle of poverty
Contents
Causes of the cycle
Chronic general poverty
Non-circular causes of poverty
Factors maintaining personal poverty
Internal and external factors sustaining poverty
Systemic factors
Emotional factors – bias
Decision-making
Intergenerational
Medical factors – mental illnesses
Summary
Choices and culture
Discrimination and concentration
Generational poverty
Early childhood adversity and basic needs stressors contributing to the cycle of generational poverty
Family background
Lack of jobs due to deindustrialization
Effects of modern education
Culture of poverty
Life shocks
Tracking in education
Theories and strategies for breaking the cycle
General approaches
Two-generation poverty alleviation approach
Effects on children
Developing world
See also
References
External links

Content: Buying in bulk (large quantities) is usually cheaper than buying small quantities in multiple transactions, but poor people are less likely to have cash on hand to finance a large purchase of food needed for the more distant future. Poor people are less able to afford delivery or automobile transport of quantities too large to carry on public transit or bicycle. People who live in food deserts without access to fast transportation may buy more expensive food from nearby convenience stores, and have more difficulty transporting perishable goods. Banking – People who cannot maintain a minimum daily balance in a savings account are often charged fees by the bank, whereas people with larger amounts of wealth can earn interest on savings and substantial returns from investments. Unbanked people must use higher-cost alternative financial services, such as check-cashing services for payroll and money orders for transferring to other people. People who have had previous credit problems, such as overdrafting an account, may not be eligible to open a checking or savings account. Major reasons for not opening a bank account include not trusting banks, being concerned about not making a payment due to a bank error or delay, not understanding how banks work, and not having enough money to qualify for a free account. Debt – People who have no net savings sometimes have to use high-interest credit cards or other loans to pay for emergency expenses or even daily needs. Interest must be paid on debt, and a lower credit score (which can result from a low income) typically results in a higher interest rate, such as for a subprime mortgage. Payday loans can have an extremely high interest rate, and other forms of debt not typically used by high-income consumers include refund anticipation loans, car title loans, and pawnshops.