When you're poor -- and specifically when your low income is unreliable -- money is (or at least feels) perishable. Been there. Worked as a security guard in college for a company that was riding the JIT staffing idea (it was the Hot New Thing of the day; this was the mid 90s) so I had no idea how many hours I'd have in a given week.
So when you don't have reliable income, money just kind of starts disappearing because you fall through the cracks of the banking system. Low balance? Service fee. Cut things too close with that rent check? Overdraft fee. Can't deposit your check in the bank because you literally need the money today to pay a bill and it will take three days to clear? Check-cashing fee.
As a result, you get conditioned (especially if this is the only way of handling money you've ever known) to think "crap, this money is going to disappear pretty soon -- better spend it now so I'll at least have stuff rather than have it get taken away." Luckily I joined the military and took their personal finance classes later, but I still (20 years later) have bad financial habits I have to consciously check from that time in my life.
>>That's like the WORST possible way to run your finances if you want to get out of poverty!
People in poverty mostly don't even see themselves as having any hope of getting out of it, so why bother trying to save? These are the people who spend 40% of their income on lotto tickets because there's just no light at the end of the tunnel unless a miracle happens.
So when you don't have reliable income, money just kind of starts disappearing because you fall through the cracks of the banking system. Low balance? Service fee. Cut things too close with that rent check? Overdraft fee. Can't deposit your check in the bank because you literally need the money today to pay a bill and it will take three days to clear? Check-cashing fee.
As a result, you get conditioned (especially if this is the only way of handling money you've ever known) to think "crap, this money is going to disappear pretty soon -- better spend it now so I'll at least have stuff rather than have it get taken away." Luckily I joined the military and took their personal finance classes later, but I still (20 years later) have bad financial habits I have to consciously check from that time in my life.