What Is Situational Poverty?

Healthful Vitality | 12/31/2022 | What Is Situational Poverty?

Life isn’t a piece of cake; there are good times and not-so-good times. However, things are easier for those who are ready for every situation. That is why one should make hay while the sun shines. This will make it easier to handle difficult times as one will have enough sources to overcome difficult times.

Situational poverty is a term generally used to define a temporary financial crisis that occurs due to various problems. In fact, it is a very common phenomenon and something you or someone you know may have faced.

According to sociologists, it is a situation of an extreme short-term disadvantage when material resources are insufficient to meet a person’s minimum needs.

In other words, situational poverty is not simply a lack of adequate income. It is actually the deprivation of one’s ability to live a free life with many possibilities and achieve the desired goals. Also, it is social exclusion and lack of participation in the way you used to.

How long it can last depend on many factors. For some, it may last for a few days, and for others, several months or even a few years.

How does situational poverty occur?

Generally, situational poverty occurs due to a certain time-specific event, and it does not continue to the next generation. However, such issues cause a temporary impact on the person or family. Some examples of such poverty are job loss, divorce, illness, or vehicle breakdown.

In certain cases, the condition may last for quite a long like due to disability, death of someone, chronic ailment, being a victim of serious crime, and so on.

The global pandemic also hit families who were already struggling with financial difficulties. Due to COVID-19, these people could make ends meet. However, some workers were laid off the job and lost their main source of income.

Why does situational poverty happen?

There are some predisposing factors to situational poverty. First, some people are more prone to it than others. Thus, those dependent on a single type of job or job skills are more likely to undergo short-term poverty. If they lose that job, they might find it difficult to find another work.

For example, one may be working in a chemical factory. If the factory closes, one may struggle to find ways of earning enough money.

Similarly, people with lower incomes are more likely to experience temporary poverty. After all, wealthy people may have sufficient resources to live well, even in the case of a severe economic crisis.

Those who do not invest are also at risk of situational poverty. Many people continue to live hand to mouth for years. The reason is not low income but rather a lack of financial planning. And when such people lose their job or when a family member gets ill, they may find themselves in a difficult situation. They may face difficulties in paying bills.

Besides, people living in certain places are at a higher risk. For example, those living on rented property in large cities are at risk of financial struggles. They might have good salaries and thus no issues in paying high property rents. However, if they lose their job, they may not have enough ways of making money and thus produce the rent.

Unfortunately, sometimes emergencies occur, and they also bring poverty. Financially comfortable working people cannot do anything to stay stable during armed conflict, global pandemic, or natural disaster.

How many people suffer from situational poverty?

It is challenging to determine how many people live in situational poverty as it is often temporary. However, a large number of people live in poverty in general. According to the US Census Bureau, 37 million people, 11.4 % of the total population, were poor in the United States in 2020. In 2021 this figure slightly increased, and statistics estimated 37,9 million in poverty, which makes 11.6 %.

Washington Post analyzed how COVID-19 influenced short-term poverty. It says that industries employing tens of millions of people, including hospitality, tourism, food service, retail trade, and transportation downsized or changed because of the COVID-19 pandemic. 225 million people lost their jobs worldwide in 2020 because of the pandemic.

The people who had financial problems before the pandemic lost twice as much money as the rich. The World Bank expects that such a category will have lasting consequences for their lifetime income prospects, including healthcare and education.

By the end of 2022, as many as 685 million people could still be living in extreme poverty. Rising food and energy prices fueled partly by the war in Ukraine and climate shocks were the main reasons why some people clashed with poverty this year.

What are the types of situational poverty?

Includem, Scottish youth support charity found that situational poverty may include several types. They are related to food, fuel, housing, transportation, and the internet.

Food insecurity concerns a lack of access to enough food for everyone in the household to live an active and healthy life. Unfortunately, food is often one of the first things people cut back on when they experience poverty.

Heating poverty deals with not having enough money to warm their homes adequately. It may happen even if a person does not fall into poverty. In 2022 energy costs for households across Europe nearly doubled. Gas bills have increased by 111 % and electricity – by 69 %. Once averaged, these two figures mean an energy bill increase of 90% compared to the previous year.

Housing poverty means a relatively high monthly cost to an owner of a housing unit. This type of situational poverty has been quite common in recent years. The covid-19 pandemic and the shift to remote work accelerated the rental cost. In the EU, house prices rose considerably between 2010 and 2021. Today the search for affordable housing is a desperate task for young workers in big cities.

Transportation costs create one more aspect of financial burden. People are frustrated with record-high gas prices. It affects ordinary families who want to fuel their tanks and drive together for vacation. Also, it impacts business and makes the prices for consumer goods jump.

Internet access is increasingly considered the main requirement. Internet poverty means people cannot afford a minimum mobile internet package. The web shut-off is very painful and depressing for those who struggle with financial problems.

What are the effects of situational poverty?

Poverty, even temporary, is quite challenging. Every day you have to struggle with bills and search grocery stores offering discounts. So many same-type questions are spinning in your head. Do I have money for petrol to fill my car? What can I cook from 1 kg of potatoes? Where can I get a winter coat for my daughter for free? How can I cut my costs until my next payday?

This brings additional stress for a person. You cannot focus on work if you have it. If you are unemployed, these thoughts greatly hinder your performance. As a result, you work badly, and your chief gets annoyed.

You do not have sufficient money for social events like dinner with relatives, going to a restaurant or concert, visiting your nephew’s birthday party, etc. Avoiding friends or colleagues as well as activities leads to social isolation and further stress. Moreover, one may feel that other people don’t want to communicate with those who are in need.

Situational poverty also leads to increased danger to health. One cannot afford medical insurance and doesn’t undergo a medical examination. Moreover, people agree to work in an environment riskier for health.

Poor people are prone to criminal activities such as robbery, homicide, vehicle crime, and burglary. Poverty and crime are marching simultaneously. Similarly, World Bank reports that decreasing 10 % of a country’s homicides would lift up per capita GDP by 0.7 % to 2.9 %.

Individuals fighting money issues live on hectic work schedules. This means that a person is very busy and performs a lot of rushed activities trying to earn extra money.

Family problems are not unique to the poor. For example, financial difficulties may lead to household quarrels, domestic violence, or even divorce.

The effects of situational poverty on children

Children from families in crisis suffer from bullying at school if they have old phones or laptops. They also experience mocking when they wear things out of their older brother or sister and when they don’t travel abroad.

Lack of money has a destructive impact on children’s health and cognitive and emotional development. Children from low-income families have lower learning outcomes. They suffer from poor nutrition and chronic disease. In rare cases, they may have mental health problems.

Shrinking budgets make families pull their children out of school. Statistics show that girls are more likely to be affected than boys.

What do psychologists recommend?

Every person who suffers from financial problems asks the question – what to do? Psychologists already have answers. They recommend the following tips to overcome poverty and improve your mental health in a crisis.

Social contacts

First of all, don’t say no to social contacts. Communication with other people will improve your mood, attitudes, and relations. So, keep in touch with local groups and don’t reject the help.

Physical activity

Physical activity has a large importance in supporting your physical and mental health. Exercising also relieves stress, and team sports build friendly relations with other people. Don’t be shy to attend free classes for the needy categories. Morning exercise, wellness programs, and yoga classes can become useful times for those suffering from a temporary lack of money.

A new skill

You lost your job, and you are desperate. Don’t panic. Learning a new skill or obtaining another qualification can be a good option while you are searching for a job. And don’t forget that some accredited courses can be free because of additional financial support or a learner loan. Situational poverty and unemployment sometimes become the beginning of a new chapter in your career book.

Financial literacy

Obviously, financial literacy can become one of such new skills. To be financially literate means to know how to spend your money wisely. It deals with understanding personal money management, budgeting, investing, borrowing, saving, and taxation. This skill will help you overcome a period of poverty more easily and be more successful in the future.

Situational poverty is a cause of depression. And it is not a secret that some people think that drinking alcohol will help them forget their problems for a while. Far from it! Alcohol is a depressant; drinking heavily and regularly can even worsen depression. In addition, if one is unemployed at the moment, drinking will reduce the chances of getting a good job and solving financial issues.

What are situational poverty changing solutions?

In many countries, the government and NGOs provide assistance in the form of temporary financial benefits, job placement support, food banks, free clothing vouchers, or baby items necessary for the care of a small child.

Of course, losing a job and seeing the family suffering from a lack of cash can be jarring. Even if you are in a bad mood, do not stay in. Instead, try to socialize when the opportunity comes. This way, one will be informed about the community resources and appropriate open vacancies.

Volunteering is a good alternative, if only for a reason it makes your time off much easier. In addition, it positively affects your mental health. Volunteering is also a natural way to network, and your colleagues will appreciate you. Moreover, you are able to be helpful in the organization you respect.

Finally, it is vital to understand that poverty also happens because people don’t see the value of things in life. In most cases, people have sufficient monetary means to live modestly but with comfort. However, they are still unsatisfied with life as they measure everything in monetary terms.

Therefore, psychologists recommend that people should understand that if they have a place to live, a loving family, and enough funds to meet basic needs, they are not essentially living in poverty. Likewise, the inability to afford expensive cars or gadgets is not poverty.

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