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Tonight I'm thinking about generational poverty.
Yes, just as how you have generational wealth you can have families that endure generational poverty.
It's something that I've been thinking about since I was young. Trying to avoid it like the plague.
Yes, just as how you have generational wealth you can have families that endure generational poverty.
It's something that I've been thinking about since I was young. Trying to avoid it like the plague.
I learned from an early age that we were poor. Certain things that I wanted I couldn't get, certain things that seemed basic were in short supply or non-existent; relatively.
Food, lunch money, clothes etc.
Food, lunch money, clothes etc.
Even before I knew about the world of finance I wanted to diagnose the problem.
What was the difference between my family and x family at church? Not in terms of physical possessions per se.
What can explain the disparity?
What was the difference between my family and x family at church? Not in terms of physical possessions per se.
What can explain the disparity?
First thing I realised. Even if the parents weren't formally educated, they pushed their children to be. Their homework was checked, they had a plan and guidance, and also had the tools to execute.
Ok check.
Ok check.
The family tended to place A LOT of focus on entrepreneurship. Starting something. Even if it's selling snacks at church. To this day one of the wealthiest persons I knew started off selling produce downtown.
Ok check. Business. Got it
Ok check. Business. Got it
The environment. Children were protected and nurtured. Re-affirmation provided regularly. You CAN do it! Work hard! Role models were there.
Certain place the noise gets overbearing. Not many can live there and ignore that noise for too long. Not many +ve role models.
Certain place the noise gets overbearing. Not many can live there and ignore that noise for too long. Not many +ve role models.
Assets. I know an amazing story of a family that pulled themselves out by buying and renting out equipment. Eventually, they had a shop, used that cash and invested and moved out.
They owned quality income generating assets. Key, own, quality, and income generating.
They owned quality income generating assets. Key, own, quality, and income generating.
Mother and gm tried to teach me some of these lessons from early.
I was never allowed on the road, lower prob of anything happening.
My gm must've raided a library because the place was filled with books. Only exciting thing I could do was escape by reading. I read them all.
I was never allowed on the road, lower prob of anything happening.
My gm must've raided a library because the place was filled with books. Only exciting thing I could do was escape by reading. I read them all.
Anyway. I was determined to end whatever generational poverty I saw approaching me.
Education was the vehicle I chose. I'm far from wealthy but what I've built and learnt so far (the hard way), my kids won't have to. They'll get it free.
Education was the vehicle I chose. I'm far from wealthy but what I've built and learnt so far (the hard way), my kids won't have to. They'll get it free.
In Jamaica we tend to call generational poverty a generational curse in some instances.
Generational poverty occurs when a family has lived in poverty for at least 2 generations. (Most sources say)
Toxic environments, poor decisions, and situational poverty can lead to this.
Generational poverty occurs when a family has lived in poverty for at least 2 generations. (Most sources say)
Toxic environments, poor decisions, and situational poverty can lead to this.
A person/family can experience Situational Poverty when their income and support is decreased due to a specific change—job loss, divorce, death.
-urbanventures
-urbanventures
But how do we address the issue of generational poverty?
For me, it comes down to someone in the family deciding that it stops with me and actually doing something about fixing it.
For me, it comes down to someone in the family deciding that it stops with me and actually doing something about fixing it.
Take a look at situational poverty. We know that issues such as death and major illness can have devastating effects on families; even wealthy ones.
Insurance is a way to help here. It is by no means a complete fix but it can make certain events less devastating.
Insurance is a way to help here. It is by no means a complete fix but it can make certain events less devastating.
Generational poverty is a deep rooted issue that can be family or even country specific. There are some things that can help though:
Building social capital. Might sound simple but just socialising w/ people that are where I want to be has driven me.
Building social capital. Might sound simple but just socialising w/ people that are where I want to be has driven me.
Building networks is also vital. A network can help you to get funding for school, help through a family crisis, or even secure a stable income in your chosen field.
Linkedin, Rotaract, College etc.
Linkedin, Rotaract, College etc.
Better systems that are able to identify, diagnose and treat mental illnesses can be critical.
Systems to rehabilitate/reform those than have down wrong. In prison we can expose so many young men to lives that they never knew existed, goals they never thought attainable.
Systems to rehabilitate/reform those than have down wrong. In prison we can expose so many young men to lives that they never knew existed, goals they never thought attainable.
Education. Goes without saying. Education raises our productivity and creativity and may promote entrepreneurship and technological advances. It also plays a crucial role in securing economic and social progress and improving income distribution.
We must also create an environment that students can leave high school and have a wide array of choices re training and can translate said training into opportunities.
Economic Assets
A pension. Too many people use their children as their retirement plan. A pension is a critical part of securing generational wealth.
Save.
Invest.
Repeat.
A pension. Too many people use their children as their retirement plan. A pension is a critical part of securing generational wealth.
Save.
Invest.
Repeat.
Saving creates a buffer that can be used to assist if any unexpected spending comes up. It can make a good night's sleep even better.
Investing allows you to use some of your money to make even more money.
Investing allows you to use some of your money to make even more money.
We must continue to create an environment where it's easier for people to save and invest.
Home ownership is also important. A house is a part of your investment portfolio. They almost always go up in value over time and when you aren't here anymore, your kids can benefit.
Home ownership is also important. A house is a part of your investment portfolio. They almost always go up in value over time and when you aren't here anymore, your kids can benefit.
It's never too late. For those reading this that may say that. It's never too late to say I want to start saving, investing or doing anything else I spoke of.
All starts with the will and then the action.
All starts with the will and then the action.
