An emergency fund is very important, but most people in poverty live in the red perpetually. There is never extra cash to save up. Any extra money is swiftly gobbled up by debtors who wait indefinitely for any money to show.
Which is actually one reason you will see some poor people make seemingly ridiculous purchases as soon as they get money. They know from experience that any extra cash on hand will get taken by creditors as soon as they detect it. So they spend it. At least, if you buy something of value, you can pawn it for cash later when you need it.
It's a terrible cycle.
And there is more at my web site. I have spent a great deal of time thinking about all these things, and writing. I have learned some things for myself.
(edit: a correction: the "development counseling" appears to be for Church members. The "immigrant services" and many other things like those online materials, classes done with the NAACP are not limited to Church members: https://providentliving.churchofjesuschrist.org/immigrant-se... . Etc.)
And I agree, the poverty cycle is of course not inescapable. But boy is it a lot harder than I think those of us who have always been more fortunate think it is.
Also, did your parents ever ask you for money? Because that is also a very frequent thing in poverty. Very needy parents that will be asking for, even expecting money the minute you have a little bit.
(Edit: Actually, my parents still live frugally so they can help other people. I don't recall eating in a restaurant until I was a teenager on a date (though it probably happened, just very rarely); we had a garden which supplemented our food budget for a large family, television was not a key part of the lifestyle but chores were (it seemed my dad was always working some helpful task for the family, except on Sundays), we often bought clothes secondhand, and we knew we were loved. The advice I have given above and below in various parts of this discussion is what we did, and I never, ever felt deprived. Food was generally homemade (cold cereal only on Sundays; Mom learned to cook mostly after marriage, but they both learned very well IMO--I salivate as I think about it), we ate a lot of wheat and beans (but not only), some bought in bulk to save. And we were very blessed, again, praying daily as a family and trying to do what we knew we should. There are people who can help with individual situations, and much good advice at the sites I have linked. But the blessings of God are what I credit the most, by far. Again, more (skimmable), at lukecall.net, a simple site with no sales or javascript.)
(We were/are far from perfect, and yes life has big challenges, but we definitely are trying, and we know what direction we should be pointed in. There is peace, direction, and connection with God available to those who want it enough to act and keep trying. My email contact is on that web site for further questions; am happy to try to answer. The more I think of it all the more I am grateful.)
At some point they just lost hope. I can't blame them for racking up debt if the system lets them continue. It sounds better to continually pay off debt and enjoy life instead of to continually pay off debt and not enjoy it.
(Truly, we do not need to be alone, or give up. I have been thru many things that ... leave me grateful now. So I hope this can be useful to someone....)
There are people who can help, with guidance, and in other ways. One list (many resources): http://lukecall.net/e-9223372036854601245.html . Another (having the Church as help in life): http://lukecall.net/e-9223372036854581807.html . Another: extended family. Another (general life lessons and resources found, including overcoming addictions, but much more): http://lukecall.net/e-9223372036854592298.html . Another (pray): http://lukecall.net/e-9223372036854585359.html . I have learned by long and much-repeated personal experience (the easy way and the hard way) that prayer makes a huge difference, if we are willing to do our part and be obedient to God when we know what we should be doing: http://lukecall.net/e-9223372036854580889.html . And how I learned that: http://lukecall.net/e-9223372036854587400.html . More resources (better than the above stuff): https://providentliving.churchofjesuschrist.org/?lang=eng
Wishing the best for everyone in tough circumstances (which seems to be all of us at one time or another)!
(edits: minor fixes, add the providentliving.org url.)
Resources include anything by Dave Ramsey (including possibly used books, DVDs, audio CDs on amazon: we bought some of these for ourselves, and to loan or give to children and others; no other affiliation), or free full BYU personal finance courses online at: https://personalfinance.byu.edu/ (I have not personally reviewed but some relatives have taken the actual classes and recommended this link.)
There are also some free in-person training programs in at least 2-3 cities, with a collaboration between my church and the NAACP, and related material online (not mine but very good), at https://providentliving.churchofjesuschrist.org/?lang=eng such as, specifially, https://www.churchofjesuschrist.org/study/manual/gospel-topi... .
(Maybe I should add those notes/links to my web site, for more easily referring people... Edit: The above, combining freedom + chances to learn responsibility, is far better IMO than letting the federal government run more of our lives, badly, and without giving a choice what to do with those $. I have written more on that at http://lukecall.net under Other then Politics or such. ) (Edit: fixed a couple of links.)