Asset poverty

Asset poverty means that someone doesn't have enough resources to meet their basic needs or to build a stable financial future. It means not having enough money or property to cover basic expenses like housing, food, transportation, and healthcare.

For example, imagine you have a piggy bank where you keep your money. If you don't have enough money in your piggy bank to pay for your school supplies, your parents have to help you out. Now imagine that your parents don't have enough money to help you either. This means you are experiencing asset poverty.

Asset poverty is not the same as income poverty. Someone might have a good income but still be considered asset-poor if they have a lot of debt and no savings.

Asset poverty can have many causes, including job loss, medical expenses, divorce, and low wages. It can have long-term consequences, including difficulty finding good housing, limited access to education, and a lack of retirement savings.

To avoid asset poverty, it's important to save money and build assets over time. This can mean putting some of your money into a savings account, investing in a home or property, or building up a retirement fund. It's also important to have a good understanding of your expenses and income, and to manage your money wisely.