5 Things That Are More Expensive For Poor People

[@moonwalker6938]

I'm quite sad judicial system wasn't included in this list. From one side poor people often cant pursue justice for themselves because the fees are high. On the other side, any penalty for the crimes that is monetary means: "This crime is only a crime of you're poor".

[@msthing]

John Oliver's segment on Bail is relevant here: kzbin.info/www/bejne/f4SYnqqvorl8gLc

[@carla919]

Agreed!

[@bourgeoisbarbie7734]

The courts operate in a jurisdiction that is foreign to the Constitution -of- FOR the United States. The judicial officers get away with it because of ignorance and stupidity. that "free' public education is the same. Chelsea is part of the problem. She advocates for it.

[@mfenn7325]

This is true for middle income too. Justice is expensive for them too. I think this video was focused on the unique experience and expenses of the lower quartile

I was waiting for her to mention this as well, bail bondsmen...

[@loriegabidel]

A few other things: People living in poverty can't afford to buy in bulk or to buy high-quality items, so they buy cheap items that have to be replaced often. Also, if you are poor but have an occasional tiny bit of extra money, one of the cheapest ways to treat yourself is through food that's bad for you. That compounds other health issues and sets up bad patterns for later in life (which them make health problems even worse).

[@carla919]

We can't use our SNAP benefits with on line grocery services like Insantcart and Fresh Direct,

[@ACTOYZ]

This is so true

[@ashleyd4563]

@@carla919 I saw Instacart saying they do accept SNAP

[@carla919]

@@ashleyd4563 Hmm then they must have recently changed it because last time I checked sometime at the beginning of the yrar they didn't. Great thanks for the info🙂

[@phoebexxlouise]

yeah it's not easy to justify buying a new shirt when it's $15 and you have enough shirts at home, and can buy second hand shirts for $5, but if you have $15 spare and you're hungry, you're gonna spend it on the junk food you've been craving.

[@pri.sci.lla.]

1.) Food (percentage of overall income 36%) 2.) Housing and Transportation (loans, high interest rates and 30% of income on rent) 3.) Healthcare (double the cost of work sponsored healthcare, uninsured people pay more) 4.) Recurring Bills (late fees, penalties, service fees, autopay may not be an option) 5.) Accessing and using their Own $ (not everyone has access to a bank) Yes being in poverty is more expensive!

[@Valentinotententen]

Todos los pobres no tienen acceso a un banco 🏦 so dependen en su cash pero les quita mucho por tax. Comida cuesta más cuando está pobre porque it takes up 36% of ur income Pagar la casa va ser más carro porque loans y high interest rates te quita 30% of income tambien insurance is más expensive cuando estás pobre por el type the insurance que casi puedes agarrar

[@jchow5966]

It should not be this way. Thiss is a shame.

[@mindyourbusinessandrelax1323]

People don’t talk about how expensive it is to live in poverty. I’m glad you made this video 😌

[@jordanwilliams9300]

Two Cents made a great video on this topic, too! Recommend checking out their channel

[@Mrg524]

@@jordanwilliams9300 yes, I love that channel!! So much helpful info

[@purplefox111]

Yes it is a difficult place to get out of Lucky I owned my own home but utilities food then the mental darkness of worrying continually with no break. Felt I aged double in that 7 year period sure it affected my 2 boys . Still uninsured drive a '94 car but lucky to have a car and roof over my head.

[@mindyourbusinessandrelax1323]

@@jordanwilliams9300 oh thank you. I will definitely check it out ☺️

[@mindyourbusinessandrelax1323]

@@purplefox111 I can definitely understand that. My family have struggled pretty much my entire life. Fortunately I am doing things now to progress financially.

[@ZePopTart]

Seeing friends go through beater car after beater car was such an eye opener to me. It is SO EXPENSIVE and STRESSFUL being poor. I was able to save far more than the money my parents spent to get me a reliable economy car in highschool, which has had profound effects on my financial situation in adulthood.

[@whitneyschmitney]

THIS! Beater cars are such a money pit! My first car was $800 and was from the same year I was born. I relied on it to get me to work and school. After a few months it cost me $1600 in engine repairs and then a couple weeks later it DIED ANYWAY. And then I had no money left, and had to beg the car insurance company to not charge me extra money for canceling my policy early when I couldn’t afford another car for the policy or their cancellation fees. So they sent my balance to collections. Three beaters later I was able (credit score, proof of income, great credit union to finance at a low rate) to get a new car with a $200/month payment which literally cost less than all my previous headaches and I’ve now paid it off and kept it for longer than all of those pieces of garbage combined. My husband’s car at $400/month is currently costing us less than what my first one did and we are in a better position to be able to afford it. Plus the removed stress of not dealing with the constant mechanical issues popping up all the time and having to call out of work. Figuring out bus schedules last minute and seeing if it’s even physically possible to get from class to work in a given amount of time. UGH this hit me so hard. I’m so thankful for my car I could cry

[@thenerdymillennial]

As a bartender I basically have no life except work and sleep... right now I make like $200-$300 a week... I don't have a car so I have to Uber to get to and from work but I can't afford to do that every day so most days I walk an hour to and from work (sometimes at late hours like midnight or later after working from open to close) and often have to play frogger by crossing the exit to the highway to get there...my diet consists of food from work which is not healthy so now my weight is at an unhealthy level... I am past due on my bills and right now I am basically working to pay off the minimum payment for everything... people who are not in poverty just metaphorically break our kneecaps with a baseball bat and just say "suck it up buttercup...stop being lazy and walk it off"... they just don't get it...this should be a topic you talk about in one of your hour long episodes or even be made into a series

[@ARpirateant]

How do bartenders make so little I thought they made more than that. Curious how

[@Xantrah]

@@ARpirateant it really depends on where you work, both the state and the company. In many states, you can be paid the tipped minimum wage of $2.13/hr. The company tracks all your tips, and has to make sure you make at least $7.25/hr. with wage + tips. And it is not unlawful for the company to keep any tips over that.

[@stefanossmitty3318]

Have you considered a bicycle or E-bike? Neither are a perfect solution but at least will save you a ton of time. I hope things improve for you 👍🏾

[@wandasetzer1469]

@@Xantrah That's horrible. Nobody should take your tips.

[@ashtentheplatypus]

@@stefanossmitty3318 Unfortunately, those are quite an investment for someone already behind on their bills.

[@mariannaryan456]

So many people don't get this. That whole "bootstrap" arugument is easy to make when you have a safety net. So many don't. Universal health care and Welfare reform are needed. People need to be weaned from the system, not cut off when they make $5 over the "limit".

[@meg894]

The housing section could be expanded on. My parents were able to move to a new state and than search for jobs. I dont have the option, my apartment requires i make 3x the rent to sign a lease. AND since I dont make that requirement, the way they "work" with "high risk" renters is to charge the whole year upfront. Thats over $12,000 at this place. If I'm not making 3x the rent, I definitely dont have $12000 in my bank account. Housing crisis is real.

[@ZePopTart]

You have to make $55,000 - 65,000 to rent a studio in my County. The median income is $36,000. It’s not even affordable for the middle class :(

[@vg7985]

Need to live with roommates.

[@kents.2866]

Yep. I was looking at crappy studios that had that requirement, I'm like seriously? I make 10 bucks an hour. Luckily found a place with some roommates.

[@effinxrightt]

I currently live below the poverty line. My fiancé and I toe the razors edge constantly between paying all the bills and what we can actually wait on. Our tax refund every year covers things we cannot afford during the year; car repairs, home repairs, and paying off credit card debt. We then get to feel great and have savings for a couple of months before the cycle starts again. This year we are absolutely determined to do everything we can to at the very least have an emergency fund. We are sick of living paycheck to paycheck and having to spend minutes, hours and days, stressing about if the budget is $10 more than what it was supposed to be.

[@milaniinalim3357]

‘Anyone who has ever struggled with poverty knows how extremely expensive it is to be poor’ James Baldwin

[@LadyNightsong]

Add: looking for a better/second job. Many living in poverty have unreliable schedules (retail, fast food). My last employer actually said it was the employee's responsibility to check the schedule *every day* because it could change at any time! And it takes forever to earn PTO, so I lose money thst I desperately needed just to go on an interview that may or may not result in a job. Also, the risk of calling off increases your chances of your hours cut or being fired. Well, I have no option but to call off if the schedule is not reliable and they give barely any PTO

[@phoebexxlouise]

Yep. definitely.

[@kents.2866]

Trying to work two jobs is a total pain in the ass. I worked at a restaurant and a Home Depot. I told HD I could be there from 5Am til 2. The restaurant. 4 til close. Of course Home Depot puts me on nights. Wtf....

[@LadyNightsong]

@@kents.2866 I swear they do stuff like that on purpose so you will be trapped and not find another job, which reduces their turnover expenses 😡

[@cheyenneharmon1022]

Yes, this was a huge hurdle for me when I was job searching 2019 and 2020. Having to take a day off is unpaid, plus the transportation I have to pay to get there, only to not get the job. It’s harder us to switch companies and interview because of the barriers we face, unpaid time off, transportation costs, wardrobe, and we still have to put our best face forward and hope the interviewer doesn’t see the “undesirable” obstacles we faced. They don’t want to hire a “struggle” candidate, they want the “pretty / completed package”.

[@bonniestar7583]

that is one reason why I work as a cleaner at least the hours are regular.

[@TheGIGACapitalist]

Wealthy people can also get out of legal issues much easier. Just throw an expensive lawyer at it and it'll probably be delt with much quicker.

They can also afford bail.

[@katywillett2590]

And can afford to miss work to attend court.

[@glenn8861]

Also just pay the speeding ticket without a second thought

[@MsBloo]

I didn't even begin watching the video, but I just have to say I love it when you do sit down talks to dive into topics such as this! Shows you're still in tune with the struggle other classes face even if you do not fall under that class. Thank you for continuing to provide awareness. With that said, time to watch!

[@haute03]

Two Cents also did an excellent video on this topic. I'm very glad to see more personal finance channels discuss this issue. Thanks Chelsea!

[@blackbutterfly233ify]

I thought about that

[@countdownstickers4877]

4:27 Food 🍕 6:45 Housing and Transportation 🏠🚗 8:50 Healthcare 👩‍⚕️ 10:48 Recurring Bills 💳 12:03 Accessing and Using Your Own Money 🏧 I want to emphasize how much I appreciated the research involved in this video. I'm a numbers kind of gal, so this was put together beautifully. 👌

[@ACTOYZ]

So many more people need to watch this video. It’s so easy for some people to look down on low income households, but they don’t realise how hard it is to get out of this endless loop.

[@LaCrownedGamer]

Being in "high risk" areas also puts extra taxes on simple things. My partner and I are moving, we live in a middle class to rich county. My parents live in a poorer area. We wanted to rent a moving truck to give some items to them. It cost 50 dollars out here but 170 out there. Even if we decided to just do milage over destination it would still be 50 bucks cheaper to drive it to my parents and back to my county than it is to drop it off over there after we are done with it. We only live 40 minutes away. Shopping is no different. Taxes are 11 percent where my parents live and only 7 percent when I live. Also when it comes to Healthcare. I have my mom listed at my address as so she can get better health coverage and hospitals. Her health is so much better once I did this. Her access to better medicine and quicker treatments because I always tell her to "dress the part and act like we have money" and it gives us better treatment and allows us to pay less.

[@m2hjrll.871]

That’s terrible I’m sorry

[@pearlnp10]

Thank you for talking about this. I feel like a lot of people don't truly understand when someone is in poverty they can't just "get up and do something" or to "just do it".

[@7ScarletRoses]

“The reason that the rich were so rich, Vimes reasoned, was because they managed to spend less money. Take boots, for example. He earned thirty-eight dollars a month plus allowances. A really good pair of leather boots cost fifty dollars. But an affordable pair of boots, which were sort of OK for a season or two and then leaked like hell when the cardboard gave out, cost about ten dollars. Those were the kind of boots Vimes always bought, and wore until the soles were so thin that he could tell where he was in Ankh-Morpork on a foggy night by the feel of the cobbles. But the thing was that good boots lasted for years and years. A man who could afford fifty dollars had a pair of boots that'd still be keeping his feet dry in ten years' time, while the poor man who could only afford cheap boots would have spent a hundred dollars on boots in the same time and would still have wet feet. This was the Captain Samuel Vimes 'Boots' theory of socioeconomic unfairness.” -Terry Pratchett

[@debratedesco1264]

Thank you for bringing awareness on this topic! It is NOT talked about ENOUGH! I lived in poverty for many years, and many of the financial choices I make today are still a reflection of that. Credit unions do not charge monthly fees and do not require minimum balances...please seek one out if you are struggling with bank fees! Also, before I had a bank account, I used to cash checks at the bank of the check I had received. So, for example, if I got a check written out to me, and I saw it said Wells Fargo on it, I would cash it in a Wells Fargo. I avoided check-cashing fees this way, because the bank could immediately verify the check writer was good for the amount written on the check and therefore, took no risk to cash it for me. Hopefully this is something that can still be done today!

[@BlairinBelgrade]

Poor in America, that needs to be clarified. As an American living abroad, poverty in the US is a lot different than poverty in developed country 😊

[@ashleyd4563]

Where do you live? I understand other countries have more of a social safety net

[@BlairinBelgrade]

@@ashleyd4563 I'm currently in Istanbul. Prior to that I lived in Kazakhstan (former Soviet country, women there are educated and have paid maternity leave), prior to that I lived in Singapore, New Zealand, Thailand and China. Women and families in these countries have social safety nets (and extended family to help).

[@vg7985]

Angela Blair paid maternity leave is socialism. Americans hate it.

[@ashleyd4563]

@@BlairinBelgrade yes we definitely need more social safety nets for women and families here! I hope to visit Istanbul someday, it looks so pretty and I'm fascinated by Turkish culture

[@BlairinBelgrade]

@@vg7985 so is public schools, police, firefighters, highways, and social security. It's funny how Americans don't recognize socialism in the US. Lol

[@rockpaperlazer]

Glad you mentioned that poverty is connected to racism. Also worth highlighting that indigenous people tend to be the most marginalized in our economy and society and in AAPI heritage month that Asian folks are more often working poor despite stereotypes to the contrary: www.prri.org/research/the-working-lives-and-struggles-of-asian-americans-and-pacific-islanders-in-california/

[@annieinwonderland]

Also being disabled leading to resume gaps.

[@aydinasivertsen8139]

Please read the book “Hand to mouth” by Linda Tirado. It is heart wrenching and very true to this topic. It teaches you compassion on different level and deeper understating of things that might feel irrational.

[@phoebexxlouise]

From the Guardian review: "Here is some of what happened to Tirado on the way down: her husband, an army veteran, was denied the stipend owed to him because of a clerical error, which took months to sort out, during which time the system pegged them as receiving benefits, so they couldn't qualify for food stamps. Nonetheless, the couple scraped together enough from their minimum-wage jobs to avoid public housing and put themselves at the mercy of low-end private landlords. On one occasion, after their flat flooded and the landlord refused to treat the mould, they moved to a motel, whereupon he sued them for breaking the lease. With no money to counter-litigate, their credit scores bombed, weighting every job, borrowing and housing decision against them from then on. Every month, in order to make it to the next pay cheque, everything in Tirado's life had to go right. A single problem - car, boiler, health, daycare - would capsize the couple's minutely balanced books and probably cost them their jobs. In the best-case scenario, she could save around $260 a year. That is the absolute most she could hope for, until her two children were off her hands and she could think about trying, along with holding down two jobs, to sign up for a part‑time degree course." Sheesh this is awful, I kind of want to read it but it sounds so depressing!

[@anaalves3658]

This is so true and so very heart breaking 😔😔😔. My sister years ago worked for a company that did small short term loans to low income individuals, their policy was to keep people in the loan, if you paid it off they offered you more loans to keep you hooked and paying interest. She hated it, she said that they were taking advantage of people that didn't have another option. I was also shocked to see that the higher your income the better interest rates you get for every type of loan. And the more money you have in a bank account the cheaper it is to maintain it😡😡😡😡. My best friend was a marketing manager for a luxury car brand and I got to go to exclusive ladies days that the brand would host, champagne, chocolates, food, goodie bags was all free for their clients. Being poor is expensive.

[@mikeg9b]

14:40 Mona is a little princess, sleeping on her fancy blue pillow.

[@Arionlappy]

Right? I didn't even notice her at first, I thought she was another fluffy throw pillow. Then she moved.

[@allelibeltran9268]

Mona sleeping on top of the throw pillow is my fave part of this vid!

[@ButterflyBree]

Thank you for this thoughtful, informative video on how poverty negatively impacts people and their quality of life. I've been underemployed and unemployed for a significant time in the past. Thankfully my family and friends (social capital) helped me maintain some stability during that time. A lot of low resourced people don't have access to social capital that can help them access better opportunities or become more financially stable. Also being poor has negative effects on your mental, emotional, and physical health and you lack the resources to access wellness services that minimize stress. Low resourced people often live in "fight or flight" mode which makes them more susceptible to chronic diseases. Most people living in poverty are trying their best to improve their lives.

[@TerriMRoberts]

Thanks Chelsea! This so useful for people to understand why poverty isn't simply fixed by "getting a better job". BTW, if you haven't already, check out the "Captain Samuel Vimes 'Boots' theory of socioeconomic unfairness" by Terry Pratchett. I have found this super handy in explaining the concept of 'it is more expensive to be poor' to people who are resistant to the idea.

[@twiggyvlogs6441]

I came here to say boots theory but in my heart I knew it had already been said.

[@twiggyvlogs6441]

'The reason that the rich were so rich, Vimes reasoned, was because they managed to spend less money. Take boots, for example. He earned thirty-eight dollars a month plus allowances. A really good pair of leather boots cost fifty dollars. But an affordable pair of boots, which were sort of OK for a season or two and then leaked like hell when the cardboard gave out, cost about ten dollars. Those were the kind of boots Vimes always bought, and wore until the soles were so thin that he could tell where he was in Ankh-Morpork on a foggy night by the feel of the cobbles. But the thing was that good boots lasted for years and years. A man who could afford fifty dollars had a pair of boots that'd still be keeping his feet dry in ten years' time, while the poor man who could only afford cheap boots would have spent a hundred dollars on boots in the same time and would still have wet feet. This was the Captain Samuel Vimes 'Boots' theory of socioeconomic unfairness.

[@TerriMRoberts]

@@twiggyvlogs6441 Awesome!! Love to see more Discworld fans out there in KZbin world!!

[@jimbrittain402]

Chelsea talks about the super-rich getting away with murder for the past 40 years. She's right, and there's a reason that the number is 40 years, and not 35 or 45.

[@EMSpdx]

Yup- all thanks to Reagan.

[@rheinhartsilvento2576]

Exactly 😣

[@paulinebeal5808]

Thanks for sharing more on this topic. Not enough people do.

[@AngelaBonanza]

Thank you for making this video!! Just shows how different TFD is from the majority of financial media who wouldn't touch upon this. I knew about the unfortunate state of healthcare but hadn't thought about food availability, cost to even work, etc. in depth so I really appreciate this discussion.

[@gwillis01]

I have heard social workers actually encourage clients to hide money in a box under the bed to save on bank fees until they had more than $300 to spare. Sometimes you have to be devious to hold onto income based social support systems and government subsidies as long as you really need them.

[@jessicamilburn5585]

Thank you for explaining this so well. I had to take a pay cut to keep my son (with a health problem) on government insurance. I was mocked by a coworker for not getting a second job to get a car (that I realized now that I actually have one) that I would not have been able to afford. The nightmare of riding a bike in 100 degree weather and even crashing it in to a wall because it was way to over loaded with grocery to safely turn just so my kid could have a healthy meal. I'm lucky enough now to have someone in my life that helps me better myself and even he admits we wouldn't be as well of if he didn't have amazing health insurance though work.

[@carla919]

Just wanted to tell you that Chase has an account specifically geared towards low income people called "Secure Banking" (Formally called Liquid) it's a debit card with a Visa logo and a chip and it costs $4.95 a month and it pretty much gives you all the benefits of a regular bank account (direct Deposit ) etc.. Only exception is you don't get checks but Money Orders and counter checks are free. Thank you for making this video that recognizes the struggles those of us living below the poverty line experience daily. You hit the nail on every aspect but, I would like to add to this how we are shamed by people for being poor They make up myths about welfare queens and say that all people on government benefits are living the high life off the taxes they pay through their jobs. If they see that you are buying what they deem luxury food items such as fresh produce or organic milk (When the store is out of cheap milk) with SNAP benefits they are quick to accuse you of using their hard earned money to buy your food. This may sound like a luxury that we don't deserve but, we are not allowed to purchase prepared foods or soups from a salad bar which is pretty cruel because so many people living below the poverty line don't have access to a stove. If we are fortunate enough to have an apartment It is usually in a public housing project (NYCHA) in New York city. Yes, we pay cheap rent but our apartments are more than sub-Standard We have to wait months even years for repairs on our apartments, maintenance never clean our buildings or the elevators unless inspectors are coming, ( the smell of urine in my elevator is sickening) but at least no one has defecates in it as I heard someone does in the building next door to mine. We have infestations of roaches, mice, and rats probably because of the filthiness of the buildings and the trash that is never taken away. I'm sure you heard about the lead in our apartments? If not yes we have lead in our apartments. Then there's the gangs, the murders, muggings, rapes and the drugs. I'm so tired of people telling me I should be grateful I pay so little rent but I challenge anyone to stay a month in my apartment and see what its like. Don't get me started on our Mayor because his answer to all the issues that NYCHA residents have to deal with can be helped by selling off the developments to private investors that will fix them up raise the rent which will force the tenants to give up their apartments. Then there's medical service Medicaid and Medicare don't pay for any of the basic medical needs such as eye exams, glasses. dental cleanings and most doctors don't accept it these days or if they do they will only see you in a clinic where the have hours one or two days a week for an hour or two. If you have mental health problems not many therapists or psychiatrist's accept so we have no choice then to go to the clinics in hospitals like Bellevue where you get a student who is just doing their clinic hours so they can graduate which means you have to start from scratch ever two or three months which is not very conducive to assisting you in getting healthy. Sorry this is such a long comment I only intended to tell you about the Chase account but, I guess I just needed to vent. And now it's time for a nap.😔 🖤✨

[@deeh9563]

So many great points made. Thanks so much for sharing your story.

[@kamilareeder1493]

I work as a performer on broadway 😪😪 people love telling us to apply to the artist studio housing that the city owns, but until only open up every 10 years when someone dies. My mom be like," see there's a chance 😌☝️ you'll only be 35 "

[@CulinaryGuide]

Thank you 🙏🏾 for tackling this topic. I’ve tried to explain these issues to friends but, they treated the issue more like an intellectual exercise rather than a reality and my “lived experience”.

[@annarchydeclutteranddesign413]

I just want to state what a phenomenal person you are. Too often rational, competent people don't get told how great they are. We take ti for granted.

[@alexandrahoward3686]

I've commented that TFD don't talk about finances for struggling households enough and how it was hard to relate to from that level, but now I can kind of understand why that is. Managing finances when you're below or on the poverty line is, as this video said, living on a razors edge, and the only way out is to find more gainful employment, which is not possible for everyone. Instead, the focus was on how unfair the system truly is and how only policy change will dramatically effect it. I'm so glad this video was made.

[@barvdw]

it's hard to get 'gainfully employed' when you're in poverty, even when you have the talent for it, because often, you can't miss the day's wage to go for an interview... Those starvation jobs often are have the lowest protection and demand the highest flexibility, too, when there's someone absent, they call you in and you better show up at a moment's notice, possibly sabotaging your attempts to get out when you were able to switch shifts.

[@mudvlood]

Always love these sit down chats on real issues that I don't think is still being talked about enough! Thanks TFD!!!

[@zeni6450]

It's important to say when people are experiencing poverty or homelessness to say that, experiencing. People experiencing poverty, people experiencing homelessness not poor or homeless people. It's not our whole identities, language changes can be so empowering.

[@MissPollyPopcorn]

I was thinking about this. I am not experiencing poverty personally but hearing the words "the poor" jarred with me throughout this video.

[@zeni6450]

@@MissPollyPopcorn It's an honest mistake but too often I heard you are a homeless person or poor person, and even now working this clients, you never use this language. It feels as though their identity is tied to their opression outside of their control. You can't financial literacy your way out of systemic issues.

[@ashleylaurenbrooks2453]

Thank you for helping to open our eyes to the real crime behind enforced poverty. What would you recommend we do to effect policy changes? Who do we contact? What next steps should we take. Tangible examples would be incredibly helpful. Thanks again!

[@kristinesprunger6416]

from 1911 to 1967, the US Postal Service ran a bank for low income customers. That would be a systemic change, I think. Also, cute doggo. :)

[@40bpaula]

There was a proposal to bring these services back to the post office, but of course some people went nuts about it and sent their lobbiests to make sure it didn't happen. And then consistently set out to practically bankrupt and destroy the post office program in favor of privatizing it. Imagine what a privatized postal service would be like.

[@m2hjrll.871]

It’s something along the lines of what Bernie proposed in his last campaign.

[@LetzzzK]

It is also expensive to go to work. The clothes, hair, shoes... and I'm not talking about doing anything at the salon or use high-end clothing or shoes. It's just expensive. Have you already checked how much of your earnings and time goes to work? You can't recover time. So sometimes you need a side hustle to pay for the 1st job, in order to be promoted or find a better job with the experience of the 1st job.

[@StephandNia]

This video was soo needed, I'm glad your channel is "Woke", you guys are not sleeping on real world situations. I'll always support this channel

[@themoneylibrarian]

THANK YOU for breaking down this topic so succinctly! The difference between poverty level wages and living wages (making enough not to need assistance but not enough to save) can be staggering. MIT has a living wage calculator where you can see how much you have to earn in your area to make a living wage. Even in low cost-of-living areas poverty wages are often half to 1/3rd what a living wage is. Would love some TFD resources on how to make these federal policy issue changes! My only critique: this video did not have enough Mona. #MoreMona

[@taylorpatz2165]

And this is why I love TFD more than any other finance channel. 👏🏼👏🏼

[@becsterbrisbane6275]

See, as an Australian I really do not understand American banking & how everyone cannot easy get a bank account & still gets paid in cheques. I am so confused by this! Pretty much everyone- including those on welfare- have an account with their salary or funds direct debited each payday here. Most things here are cashless. You can pay bills and do internet banking through your own account- including the poor. For purchases up to $100 instore, we don't even need to put a pin number in with our card, we simply 'Paywave' it (this was increased to $200 during the height of the pandemic last year to help for contactless transactions). It's also funny- my cruise with Carnival (Australia) was cancelled last year & they wanted to return my money via cheque. I really couldn't understand why the hell they'd send me a cheque all the way from Florida when I simply paid online with my bank card (not a credit card) & they could just reverse the payment & return to the card like we do here! Get in the 21st century, America!

[@Jay-vr9ir]

I did not Australia was so wealthy , when my cousin divorced his Australian wife , he returned back to Canada . He left his two sons back in Australia , if it is so good , why did he leave ??

[@mouseluva]

Thank you for this video. I feel seen. Grateful that my time in poverty was in countries less horrendous than the U.S.. Be safe out there, you lot :(

[@sharonlugone5955]

The James Baldwin quote was the perfect preface for this truth-telling video. Having lived in poverty at different stages in my life, I concur with everything that you say. Although I still don't have much money, I'm able to take advantage of rent and food assistance because I live in well built and maintained senior housing. I also have Medicare which covers most of my medical expenses. It's such a blessing to be able to live out the remainder of my life in safety and dignity.

[@PatriciainOz]

It is so true. I lived $2K above the California poverty line and being single I wasn't eligible for a lot of programs. Aside from depending on generous landlords taking public transit to go to the grocery store limited my food options for a long time (5 years) I rarely got ice cream and fresh meat was equally rare. Carrying a 12 pack of toilet paper can be humbling but at $12 I had $8 of bread, cheese, and bolonga to last me till payday.

[@annah7648]

Chelsea in the intro though..Those glasses? That hair? The jacket? What a look.

[@kattihatt]

Please. Chill.

[@elenakalliste]

Can we please take a moment to scream at the poverty line, which should be about 3x what it is!!! Damnit!!! 🤬🤬

[@40bpaula]

Agreed and Amen. I was listening to the numbers Chelsea gave out and realized that while I am above the amount for a single person, I still struggle just like that person making $12,000 a year. I'm definitely no where near middle class. So what is my category?

[@m2hjrll.871]

Seriously, it’s a joke

[@countdownstickers4877]

Eye-opening. So important to hear the different perspectives. Thanks for inserting those facts and poverty baseline/stat. I definitely take a lot of things for granted. Thanks for keeping me in check, TFD!

[@katiefrolichman]

Omg Chelsea. I’m fan girling over here bc you are slaying. I feel your energy and it strikes a fire in me. Your push for human rights and having compassion for people only makes me love you all the more. Your content is high caliber. And I love your personality. You’re smart, sassy and savvy.

[@cordeliastockwell1837]

I really appreciated this video - keep bringing up the systemic issues of our country (and the world) so that we can focus on policy change

[@alexfrei8662]

Wow. Didn't realized, that in the US prices for everything is SO high, compared to russian. Poverty line, mentioned at the beginning? 12880$ per year is 80000 russian roubles per month, and it is median income in Moscow, for Russia 80k per month is pretty cool salary, most of the country lives on 30-40k per month (400-500$, 4800-6400$ per year)

[@annabanana7867]

When I see this, I‘m just remainded how lucky I am to live it Germany. While some of this factors apply universally (food is more expensive relatively everywhere, and the poor will pay more taxes - relatively - than the rich), healthcare will not get anybody bankrupt, food deserts are rare (and usually appear only in remote areas in the countryside) and I have never heard of somebody being unbanked here. Not saying that in Germany there‘s no possibility for improvement, because there sure is.

[@barvdw]

The poverty trap is real. And it's almost worse for those just barely over the limit, where they can't get a cheap bus pass, but can't pay the normal monthly pass and have to pay expensive tickets, where they don't get subsidised health care, or school meals for their children... There's also a big distrust in poor people, for context, the scandal that's rocking the Netherlands, where people relying on government help were seen as fraudsters until proven innocent, hitting some with fines higher than what they ever got in stipends because they had forgotten to add the groceries their parents sometimes did for them to their regular income, etc. And what with people who share a house with some roommates to lower the bills, in Belgium, they are suddenly 'living together', as in: they are dependants of their roommates, and their stipend is lowered, as if you were married to your roommates. The shame is real, too, how many in need haven't passed the food bank multiple times before finally finding the courage to go in? Because they feel like a failure, or because they don't feel as needy as someone who is in 'reel' poverty...

[@KatyAdelson]

Also, fresh fruit and veggies are so expensive to buy and keep! 🙁 It’s so much cheaper to buy oil, beans, and rice; no refrigerator needed, and high calories. A tablespoon of fat is gross, but has more calories and energy that make one feel full than a tablespoon of expensive blueberries. The nutrition isn’t there, but at least there are enough calories to help one get through the day. I think that’s also partly why poorer people gravitate towards low-nutrition food... hopefully some kind of change can happen...🙁

[@paulinebeal5808]

OMG $200 per visit is insane for a general doctor is insane. Thank god I live in Canada. I wouldn't be able to choose between a General doctor and going to the dentist for my facial condition if I was American. My condition requires jaw surgery in the states costs $80,000 in the states to pay for necessary operation. The same price in Canada but is covered by our taxes. My dental care in Canada isn't covered fully in Canada but my surgeries are. My friends are paying so high prices for their condition if it doesn't fall under pre-consistiong conditions law in the us. My heart breaks for everyone.

[@joyphillips1821]

The reason why it costs more is because US ships drugs, etc. around the world at a cost to other countries that is much lower than it is in the US. US does this to sponsor goodwill towards other nations.

[@vanessar.6085]

I remember calling clinics just to see how much it would cost to be seen. That did not include the lab work and the medication I would need. That was extra. I will never forget driving 30 miles for a cheap clinic, labs, and medication. In total, I spent 6 hours on this visit (drive time, walk-in wait, being with the doc, and waiting on medication). The total cost of the clinic, the lab work, and medication came to the same cost of JUST THE VISIT to my local clinic. I honestly cried once I got home. It's stupid.

[@vanessar.6085]

I remember calling clinics just to see how much it would cost to be seen. That did not include the lab work and the medication I would need. That was extra. I will never forget driving 30 miles for a cheap clinic, labs, and medication. In total, I spent 6 hours on this visit (drive time, walk-in wait, being with the doc, and waiting on medication). The total cost of the clinic, the lab work, and medication came to the same cost of JUST THE VISIT to my local clinic. I honestly cried once I got home. It's stupid.

[@supernova622]

Even with insurance, copays alone can cost $100 for urgent care clinics, $100+ for specialists, $500+ for emergency room visit, exclusive of any services rendered

[@jinde75]

@@joyphillips1821 the price is not regulated in the USA. Germany makes a lot of medications too, but it's not crazy expensive because the government and insurance companies want a low price. It is not reasonable that people pay 10x as much for insulin and they have to pay it themselves too! The USA is not the only producer of insulin. It's just not regulated.

[@MsZaneta123]

Yes, speak the truth! In my youth, most of my income centered around payday loans. I try so hard not to use them but, in order for me to avoid late fees and overdrafts, their the only option that I have at the moment.

[@sophiaazevedo4013]

Another thing that costs more when you are poor is laundry. I am personally experiencing this in my own life. I live in an apartment with a common laundry room for all the tenants. The cost of doing a single load of laundry is $3. That may not sound like a lot, but it adds up to an average of $20 per month for us. And when you consider it would only cost $0.50 on the high end (not including the cost of the machines) to do a load if you had your own machines, it really makes me angry. It costs 600% more to do laundry when you're poor.

[@gwillis01]

Pick the location of your residence carefully. I told my real estate agent that one of my top priorities was to be near a supermarket.

[@beckywhinery4652]

I lived in a lower income neighborhood that bussed to the better schools. Bought a 90,000 house/ 300,000 + home next to the school. Yes. I could afford a better lifestyle at the time. Just didn't want to be stuck. I knew college and extras for the kids were coming. Plus empty nest, now. Didn't fall for the trap of impressing friends and family.

[@gwillis01]

@@beckywhinery4652 I agree that a modest home that fits your needs is better than a flashy, status symbol home. I aim for a modest house near a supermarket.

[@joemacdougall9205]

A lot of these issues don't actually occur outside of the US. The US is insane

[@barvdw]

Living in 'socialist' Western Europe, while some of the problems are massively increased in the US, it's not all perfect here, either. Even with (much) cheaper medical bills, poor people still postpone doctor's visits, because it could mean they can't go to work, and while you're still paid during sick leave, it's not as much as your regular paycheck. Housing can be very expensive, and there are quite a few cases where rent is higher than a mortgage payment, but because their income isn't high enough, they are refused for a mortgage... While public transport is generally okay (it has the benefit of existing...), there is still the Matthew principle, that areas with generally decent transit get better (because efficiency...), while poorer areas see it cut (because it's not attractive enough to get enough passengers). Not saying I'm not happy for not living in the US as a poor person, there's room to improve here, as well.

[@lv9265]

that's not actually true, you know...

[@octopiarejustwetspiders]

Another slightly unrelated issue to talk about is disparities between the county and federal poverty lines and how that affects the assistance you can get. For example, my county poverty line for a family of 4 is $117,000. My family of 3 makes (on average) $42,000. This means that we're struggling significantly while not being eligible for federal programs like SNAP. I can't leave the county due to a family law situation. This isn't very uncommon either. We're stuck.

[@hikuwai]

Thanks for making a video about this. It's vitally important to recognize the level at which millions of Americans are systemically blocked from having control over their financial futures. There's so much to dig into here, I really appreciate this scratching of the surface and hope for more.

[@kimpham54]

Thank you for addressing some of the issues of people dealing with real poverty are going through. Glad that your channel doesn't just talk about the problems of a very specific demographic (and the videos i always get recommended to watch), e.g. youngish middle class professional trying to optimize every aspect of their life

[@gabrielsouza8480]

You make such a great point about how changes must be systemic and policy-based. Regulation really is what keeps capitalist systems from exploiting people. I'm not an American, I follow the channel purely for the awesome advice, but America seems so under-regulated. Banks especially are WILD. Where I live most of the banking practices you mentioned - requirements for certain amounts in an account, overdrafting fees (overdrafting simply doesn't exist) - are ILLLEGAL, as they should be, and banks are obligated by law to provide any citizen with a free basic bank account. We just can't trust companies to act with decency.

[@erzsebet_szabo]

Free bank acct... That's awesome

[@elizamartinez4184]

Thank you for making this video. This topic is avoided and never talked about enough.

[@belenorbe]

Wow! Honestly this was by far my most favorite video. I connected with everything that you spoke. Thank you.

[@lavayuki]

This is really interesting. I grew up well off and am very comfortable financially now, so it was insightful to know about these

[@carla919]

I didn't grow up well off but we got by. I never thought I would be in the situation I'm in today. I worked for 30 + years as a special ed teacher before I became disabled.

[@okhal]

Here in canada, at where I work, for non-clients we charge a fee to cash a cheque depending on what the cheque is. (unless it's a federal chq). My advice is to find a bank that has accounts that have a low monthly fee without a minimum balance. it's awful when non-clients come in and tell us about how much money it is for them to cash their cheques. like???? the businesses are literally taking most of the money away?????? honestly sometimes I just waive the cashing fee if it's a small amount. side note, i prefer using cash over plastic.

[@jackl7847]

This is out of topic but I honestly thought Mona was part of the pillow earlier in the video. Besides that - great topic that gets ignored a lot!

[@megdoh]

Me too! I thought it was a fluffy pillow but alas, it was a pupster.

[@Classiclover4ever]

Thank you so so so much for highlighting this issue. I am personally sick of the poor people are lazy trope that gets thrown around because of American individualism and "pull yourself up by the bootstraps" kind of advice. Poverty is a vicious cycle and there are systems kept in place to keep people in that cycle. Once again, thank you for talking about this.

[@lucybrown1804]

I live in Australia with Medicare, so I can go to a GP doctor at no charge (different for specialists). Hearing that you have to pay up to $200 for the same visit in the USA is horrifying, that's a sure fire way to put people's health at risk.

[@semiarias227]

We also have medicare and medicaid especially if you are under the poverty line. I don't understand why that wasn't mentioned in this video. We also have government funded clinics with access to discounted medical care including dental. We have food stamps, WIC, and food banks. Pregnant women also have access to pregnancy medicaid which covers all basic prenatal costs. I'm confused by this video. I understand maybe not everyone has access to these locations so transportation and housing can play a part in limiting people's ability to benefit from those things but I wouldn't think that's a majority. (At least here in NC)

[@vg7985]

semi arias it depends on state. In my red state Medicaid is not available for adults, "affordable " insurance through Obamacare is $2000/month for single person with $7000 deductible with no dental, and this plan does not cover preventive care. However we're offered solution if you're get seriously sick. Gun sales is booming.

[@camigenter]

As someone who grew up in Brazil and now lives in Europe, abs has been living ON the poverty line here for years, most of those things sound completely absurd even for Brazilian standards. But generally yeah, independent of where you live, being poor is freaking expensive.

[@hellejuice91]

Seeing the difference between the US and the UK makes me feel so relieved the be British. I grew up poor and yes some of the issues exist here, but we don't have to worry about healthcare, the water company is not legally allowed to switch or restrict your water, there are rules surrounding the fees you can be charged if you go into an unauthorised overdraft and public transport is fairly plentiful and pretty cheap. Even when I was incredibly poor I have only ever met one person who didn't have a bank account and this was just because they were 16 and hadn't sort it out. A cap was also introduced on payday loans in 2015. I am not saying the UK is perfect (we aren't it is still more expensive to be poor here) but we have less barriers to take us out of poverty.

[@Fenyally]

thank you for making this video! this isn't talked about enough, thanks for spreading the information

[@Ellaodi]

My parents grew up in the hood and I had the luxury of growing up in the suburbs. I mean you're only working one job to make ends meet, going to the grocery store more than once a week or getting to the bank is already hard enough, but if you have to work two jobs to make ends meet because you're underemployed, it's virtually impossible and corner stores that charge more than it would be at the grocery store are your only option when the buses don't run past 9 p.m.

[@21prufrock]

In California, Healthcare is cheaper. If you qualify for Medi-CAL, it's almost free. Healthcare is a lot more expensive for middle-class. I would add not having a savings account is very expensive. My family member ended up racking up $35 k in credit card debt which meant the monthly payments only went to the interest. There was no money left after interest payment. Underbanked is so so so so true. I saw it first hand. Having to use check cashing place is sooooo expensive!

[@leiasmith3305]

Thank you SO much for this!!! You are speaking truth that isn't easy to hear.

[@SA-nt9kl]

Being poor is expensive.

[@surelysuperior]

If you are underbanked or your bank is charging you outrageous fees consider a local credit union. You can often get a free checking account with no minimal balance if you open a savings account. At my CU the minimum on a savings account is $5. Also if you can get some good credit ask for a line of credit, should you over draw your checking by accident or b/c of an emergency it will use your line of credit instead of over drafting your account and getting a fee. The interest rates can be a little high, but are less than a credit card and if you pay it back on your next paycheck it is less than the overdraft fee. I was able to manage to see all of this up while only making $12 an hour, which is more than poverty, but still not well off. My CU is also committing to opening more branches inside the City of Rochester, NY, one of the poorest cities in the state.

[@Redipstick]

Insurance - auto, home, and life insurance. In Connecticut auto insurance is required. But insurance companies base rates on where you live, the type of car and your credit. People in urban area pay more. And if you cancel the insurance or it’s canceled you get fines from the DMV. Renters insurance or home insurance is also impacted by credit.

[@TalkingTiffany]

Can you let us know of ways that we can help? Which policies should we be changing? How can we have them changed

[@mandyhackman9740]

Thank you for asking this question. I don't have all the answers by any means, but one good place to start is in housing equity. Are the policies in your area written to primarily favor landlords over tenants? Are there tenants' rights laws on the books? Which politicians are talking about this issue and which aren't? Are there any initiaves to increase housing equity for renters or lower barriers to getting a mortgage for marginalized communities in your area? There are also many ways to approach this, and that's just one of many - so in order to get more specific you can look into joining your local mutual aid society (which will be clued in to what people in your local area specifically need) and/or your local chapter of SURJ (showing up for racial justice.) Both of these groups will prioritize listening to affected folks in your area about what support they themselves need, rather than taking a top-down approach that might be misguided due to blind spots of not having lived through the experience of poverty.

[@charityrichards7860]

My boyfriend and I are feeling paying for rent and never ending car expenses. We're considered "lower-middle class" in the DC metro area, whatever that even means. We're just barely over the threshold for section 8 aid, which means we have to pay full price for our section 8 apartment when we literally can't afford any other apartments in the area 🙄

[@Jay-vr9ir]

Do not have children , if you already do , do not have anymore .I see so many welfare moms or as they are classified , poverty prone people . There children usually follow , the same kind of life and run into problems with law.

[@charityrichards7860]

@@Jay-vr9ir oh definitely, I know we cannot afford kids at the very least not any time soon. I've been on some long term birth control for awhile and I'm going to continue it for many more years. We're still pretty young so we are not in a rush for kids like most people my age.

[@mikeyllo]

I appreciate this video and the messaging. Yes, personal responsibility matters, but it's so much more to it than simply "pulling yourself up by your bootstraps." Depending on the context, the logic is problematic. If a community has been allowed to thrive for years and now they are miles ahead in terms of access, education, finances, etc., yelling down to the people that didn't have that same access to all of a sudden "pull yourself up by your bootstraps" is just as demeaning as the policies that were implemented to keep those people down in the first place. Yup, personal responsibility matters, but the systemic barriers should be addressed too.

[@planetChristie]

Hmm health care is so expensive that it was actually cheaper to come out of pocket than paying high deductible rates!!

[@gwillis01]

Buying a car is less expensive when you put down twenty percent of the value of the car as your down payment on the car loan. If you have an excellent record of paying all your bills on time for five or more years, you can get a good rate on your car loan. Anyone can accumulate a good track record of paying their bills exactly on time for several years in a row if they make it a top priority. Paying your bills on time is a sign of emotional maturity. The best loan rates go to mature, responsible people. The others get SUBPRIME AUTO LOANS with interest rates that are astronomical.

[@bbissocute]

Hey Chelsea, I've been following you guys for a long time and always appreciated your financial advice. I've been living at this poverty level for years trying to scrape and save to get my masters (and hopefully PhD) in Europe thanks to my grades and scholarships. Even living on less than 6k a year, I still tried to put 5 or 10$ into my ira monthly because all advice points to saving early even if its small. I was very fortunate to get into a program in Germany and am on track to finish my Masters soon, but while I was living overseas, I ran into issues when taxes hit. Because I wasn't making wages in the US, I was essentially told that I had to remove all the savings I had put in over the last year because it was over the amount allowed, despite it probably being only about $100s or so, or risk being penalized with a fee every year the money was kept in the ira. I'll be honest, it was very disheartening because in my situation I can save so little towards my future, and the sacrifices I made to even set that aside seemed to make it a really hard pill to swallow. I plan to be abroad for at least another few years if possible, but at this point I have no idea what I can do to save towards my future other than just set that money aside in a savings account, which really isn't accumulating much in the way of value, but I guess its better than nothing. As someone who did live a portion of her life abroad, do you have any advice for saving effectively for your future while poor and not in the US? Thank you for your great advice and wishing you well, Allyssa

[@MZero8099]

Thanks for covering topics like this

[@OGMyth]

So glad you made this video! I'm lucky to have never lived in poverty, but my SO was not. He got into so much trouble financially because of how predatory almost every financial service is of people living in poverty. It's amoral and I wish these practices were illegal (and I wish we felt shame as a nation) or there were some reins on the industry. But the first thing I think Americans need is a proper healthcare system. Medical care in the US is outrageously expensive and at the very least, we need to extend to Medicaid to cover below median wage so people can have medical coverage and work at job that doesn't offer it. I'd like to think, for a second, we have enough empathy to consider this, but it's good economically for us as well. We end up paying people medical bills when they can't. All kinds of medical debt goes unpaid and that ends up on tax payers. It would also help small businesses attract employees even if they can't offer benefits like larger companies can.

[@berniceanderson539]

All fines (parking tickets, speeding tickets, etc) hurt poor terribly leaving no rent money, grocery money, Christmas gifts for kids, etc. The exact same fine is given to the wealthy which to them is like throwing pennies on the street....no pain whatsoever.

[@feylights166]

Not to mention tax withholdings that come out of your paycheck. In some cases, it's enough to lower your income bracket, and when you're poor, that really affects you. I'm working retail, and I'm lucky enough to live with my parents, so free food and board, and while I'm fortunate to have a good savings account, my income sucks, and I think about money more than I want to. Almost every decision I make is based on it. And I know there are people who are far less fortunate than I, as many of the things mentioned I don't have to worry about personally, but this video really drives home just how much money *can* buy happiness to an extent, because financial stress has so much, well, baggage. And many services for low income (such as medicaid) people, even when not predatory, are a hassle to deal with/go through. Also, adorable doggie.

[@Sophie3647s]

Likewise

[@alexzandra-fallonallen317]

Living in proverty costs you time as well, long waits and travels to and from work, school, store etc.

[@cbpd89]

Don't forget to include your deductible and out of pocket max! Insurance + deductible is the real cost of your annual. So, despite employer provided insurance, it'll still be $12k for our family.

[@SAmaryllis]

Jeez....I didn't know there were types of loans that would actually penalize you for paying it off earlier

[@kaitybgood3834]

Love the message at the end 👏 thank you

[@Sophmorical]

The United Way has really interesting data about folks who are above the poverty line but not earning enough to afford basic needs. These households often lose access to benefits as they make more money, sometimes a raise can cost a household money in lost benefits. They're called ALICE households (Asset Limited, Income constrained, employed) and it's really interesting to see what a family would actually need to earn in various communities to be able to afford basic needs and put money in savings. It's often tens of thousands of dollars more annually than the poverty line. (The poverty line is kept lower than it should be so we can act like there are fewer poor Americans than their actually are. It's way past time to adjust the poverty line for real expenses in 2021. End rant)

[@Wazzaaap]

Would you guys please cover how to deal with / communicate with family members who ask for too much money or time? It’s harder to maintain civility with that amount of baggage. 🤬😡 thank you

[@atru3000]

This is so true. I remember when I lived in a food desert, I would have to grocery shop at the drug store I worked at. So expensive and not as nutritious 😖