Every January is Poverty Awareness Month, and it provides an important opportunity to take a closer look at the issue of poverty in the United States. It’s estimated that nearly 40 million people live below the poverty line in the US,1 a threshold that government agencies determine by comparing annual income and number of people living in a household. As of 2021, a family of four making less than $26,500 meets the threshold for poverty.2

Let’s dive into poverty statistics and explore what can be done to reduce poverty in America.

Poverty Statistics

The current poverty level is $25,750 for a family of four.2 According to data from the US Census, 11.8% of Americans live below this threshold, which means they are considered to be living in poverty. The percentage of those living in extreme poverty—defined as having an income less than half of the federal poverty level–is 3.6%. People living in extreme poverty face especially difficult challenges; they often have limited access to basic resources like food, education, and healthcare.

Poverty varies from state to state but is especially prevalent in the South and Southeast regions of the country, which have 41 of the 59 metro areas with the highest overall poverty rates. Mississippi (27%) and Louisiana (26.9%) have the highest rate, while Utah (8.1%) and New Hampshire (9.2%) have the lowest.1

How Do People Get into Poverty?

There are many factors that can lead people into a cycle of poverty.

  • Low-paying jobs with limited career advancement opportunities leave people unable to earn enough money to support themselves and their families adequately.
  • Lack of access to quality educational resources can make it hard for people to gain skills and find better paying jobs.
  • Systemic racism can prevent people from getting ahead regardless of their qualifications.
  • Natural disasters or health issues can lead to financial strain that plunges families into poverty overnight.

Unfortunately, these factors often feed into each other, making it difficult for those affected to break out of their cycle. In some cases, poverty can be intergenerational. A study found that adults who were poor during childhood are twice as likely to be poor in adulthood than children who did not grow up in poverty.3

Poverty can have a profound effect on individuals and families, leading to physical health issues, mental health problems, social isolation, lack of access to essential services such as education and healthcare

How Does Poverty Affect Mental & Physical Health?

Poverty has both mental and physical consequences for individuals facing it daily.

Studies have shown that adults living in poverty experience higher levels of anxiety and depression than those with greater financial security due to stressors related to their situation, such as feeling socially isolated or worrying about providing necessities like housing or food for their families.4 Studies show that poorer communities often suffer from worse overall health outcomes due to a lack of access to quality healthcare services or nutritious food options and exposure to environmental hazards like air pollution or hazardous waste disposal sites.3

Despite all these grim statistics, there is still hope for reducing the number of Americans living in poverty through programs—such as job training initiatives, increased access to educational resources for low-income students, and targeted funding for disadvantaged communities—explicitly dedicated to helping those affected by it. This month—and every month—we should strive towards creating a more equitable society where everyone has an equal chance at success regardless of their socioeconomic status. Together we can make a difference!

Here’s a list of resources for assistance with food, housing, employment, and bill paying.

Learn more about managing financial stress and the social determinants of health by visiting your member portal or visiting our Uprise Health resources section.

References

  1. https://www.census.gov/library/publications/2022/demo/p60-277.html
  2. https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines/prior-hhs-poverty-guidelines-federal-register-references/2021-poverty-guidelines#threshholds
  3. https://www.nccp.org/publication/childhood-and-intergenerational-poverty/
  4. https://adaa.org/find-help/by-demographics/low-income