Defeating the Silent Killer: Systemic Poverty
Systemic poverty is just one-way racism manifests in our country. What is Systemic Poverty? It is the reality that institutions such as banks, universities, and other facets of society that are crucial to the individual’s economic advancements, limit people of color’s access to their services. They do this by implementing clever policies and other discriminatory tactics into the law. Without access to these services, many racial minorities have no other option but to work low paying jobs in the same low-income areas they live in. This vicious cycle has persisted since 1877 when the Jim Crow laws were put in place. Still, some people think a lack of discipline when it comes to spending and saving is to blame and that if parents in these communities took the time to educate themselves and their children on how to responsibly manage money, it wouldn’t be a problem. Here’s why this logic is incorrect.
The Myth of Social Mobility
Most parents with low incomes cannot demonstrate healthy spending practices because they lack the money and time. Having to spend all of your money on necessities such as housing, groceries, and clothing without putting any away in savings is not considered a healthy spending practice, but it is unavoidable for families living paycheck to paycheck. In most cases, these parents have little to no free time, having to work insane hours with little compensation to provide for their families. To qualify for most moderate paying jobs, applicants are required to have a Bachelor’s degree. Many people living in poverty to not have the time or money to attend college, resulting in them being excluded from these opportunities. All that to say, the idea of “pulling yourself up by your bootstraps” and social mobility is virtually impossible.
Although educating youth on healthy spending practices is not enough to defeat the cycle of systemic poverty, it is an important step in preparing them to have good habits once they do join the workforce. Unfortunately, financial literacy lessons are often not a part of elementary and high schools’ curriculums, especially in low-income areas. “one out of six high schoolers are required to take at least one stand-alone personal finance semester for graduation.” (NGPF, 2018–19) Sounds like a low number, right? So what can young adults living this reality do to develop healthy spending practices? Luckily, in recent years, there’s been an increase in financial literacy programs, geared towards young adults to solve this exact problem.
Resources for Impoverished Youth
America Saves for Young Workers (ASYW) is a campaign that stands out. Their focus is on helping teens budget and to increase savings. “Savings can enhance the security and resilience of young people as they negotiate these difficult times, particularly those from low-income backgrounds who cannot fall back on substantial financial support from their families.” (Tony Dolphin, 2012) Young adults involved in ASYW programs are required to complete the America Saves pledge, a tool that helps participants budget their incomes by asking them to commit to savings goals such as tuition, a new car, or rent.
Developing good savings habits is just the first step. One organization that goes beyond providing financial literacy lessons is Junior Achievement. Along with financial literacy education, Junior Achievement programs teach young adults economic and entrepreneurial lessons that will give them the tools necessary to start their own ventures. However, encouraging youth to start businesses is not the main goal of Junior achievement and many other notable entrepreneurship programs such as Network for Teaching Entrepreneurship and YouthBiz.“It is important to recognize that their primary goals are to promote youth engagement and attainment in education and to develop skills that can support them in their careers.” (Joyce Klein and Yelena Nermony, 2019)
As of 2018, Measure of America’s report shows that nearly 4.6 million young people are not enrolled in school or a part of the workforce. These people are called opportunity youth. Without a college degree or high school diploma, it is almost impossible for them to find jobs. Chicago Youth Centers (CYC) is a non-profit organization providing programs for opportunity youth to explore their areas of interest such as twenty-first-century skills, STEAM careers, and healthy living. CYC programs are designed so that the youth participants gain skills that they later use in their jobs and careers.
How can I join the fight?
If you or someone you know is looking to get involved in the fight to end systemic poverty there are many resources for you. Originally founded by Martin Luther King. Jr, the ‘Poor People’s Campaign’ is a national campaign that confronts systemic racism and poverty through protests for a change in unjust governmental policies. If you identify as Christian, The Ecumenical Poverty Initiative is a resource worth checking out. This Initiative focuses on mobilizing the faith community to speak and act to end poverty in the United States. If these last two resources didn’t interest you, the city you live in most likely has dozens of other initiatives and local campaigns you can get involved in.
The battle to put an end to systemic poverty can at times seem impossible to win, especially when many people don’t acknowledge it as a real issue. However, the increasing number of people willing to educate themselves and advocate for change is inspiring and indicative of a promising future.
Works Cited:
Collins, M., Leinhardt, H., & Smeeding, T. (2014). Getting by: earning, spending, saving, and borrowing among the poor. Retrieved September 11, 2020, from https://www.irp.wisc.edu/publications/fastfocus/pdfs/FF20-2014.pdf
Dolphin, T. (2012, November). Young People and Savings a Route to Improved Financial Resilience. Retrieved September 11, 2020, from https://www.ippr.org/files/images/media/files/publication/2012/11/young-people-savings_Nov2012_9849.pdf?noredirect=1
Klein, J. A., & Nemoy, Y. (2019, January). Creating Entrepreneurship Pathways for Opportunity Youth. Retrieved September 11, 2020, from https://assets.aspeninstitute.org/content/uploads/2019/01/Creating-Entrepreneurship-Pathways-for-Opportunity-Youth.pdf
“Who has Access to Financial Education in America Today?”, “. (2018). U.S. Access Report. Retrieved September 12, 2020, from https://www.ngpf.org/advocacy-report/
