I recently read an article on MSN.com that asked Can poor people have HDTVs? It pointed out various statistics, such as: Some 62% of households, that were earning less than $20,000 annually owned between 2 and 4 televisions (according to the 2009 Residential Energy Consumption Survey). I thought 2 TVs? Who needs 2 TVs? And then realized that I have 2 TVs – and there’s only 2 of us! 
There were some other statistics as well from the Heritage Foundation:
· 80% of poor families have air conditioning.
· 92% have a microwave.
· Almost two-thirds have cable or satellite TV.
· More than half of poor households with children have a video game system.
· Half of poor households have a computer and 43% have Internet access.
· A third have a plasma or LCD TV, and a quarter have a digital video recorder.
Now, the Heritage Foundation is described as “conservative”, and I don’t know enough about the foundation or their study to know how accurate these numbers really are. I’m going to assume there’s at least some truth to them though.
So why is this? Why do people who are poor own things like this? There are various reasons:
· Prices have dropped. You can get things such as TVs and microwaves for much, much cheaper now than you used to.
· Things are no longer considered luxuries. Growing up, we didn’t have air conditioning, more than 1 TV, or a video game system. Usually one family one the street (the one with the executive Dad or 2 working parents had a video game system). I now have A/C, 2 TVs, and 3 video game systems! I know, I know – I sound like a spoiled brat. J. And I don’t even have children.
· Things were bought when times were good. You may have been able to afford the video game system and plasma TV when you were doing well, and now that you’re not doing so well – it’s not really worth selling them, you’d get so little for them.
· You get used to it. If you’ve had cable or internet access, it’s darned hard to give them up, no matter whether you’ve had them or not. I lived just fine without a PVR before, but now I’m addicted to mine.
I have to admit – I get rather annoyed when people gripe about how broke they are, and I see all the stuff they own.
But, the thing is – it’s not the one off costs (such as buying a TV) that get people. It’s the day to day costs – rising cost of food, day care, gas, etc. that get people and really squeeze them.
What do you think? Can you be considered poor if you have nice TVs, Internet access, and a PS3?
Interesting article, I read it the other day and I’m still not sure what I think. I guess it depends on how you pay for things. Are you putting everything on credit or are you saving for it?
Michelle recently posted..My Car Costs
Yup – there’s the rub. If you can pay for it, great. But if you have to put it on credit..
Michelle has a good point. People can have things but not own them. This is where financing agreements come in and people get screwed. They don’t plan right and think they will be able to pay for something later and more often or not they can’t.
Miss T @ Prairie Eco-Thrifter recently posted..8 Ways to Save Money on Groceries Without Coupons
Yes, very true. I remember watching “Til Debt do us part” once and they were financing a T.V.! It was a huge waste of money.
You can definitely be poor and own certain luxuries. The thing is those people are unlikely to be putting money away for retirement and they often have debt they are still paying off. It is partly that poor money management that leads them to be poor in the first place. People just feel really entitled to have certain things these days. So as a result their priorities are all out of whack as they chase building up certain material possessions. Unfortunately they are screwing themselves over long term.
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Yup, it’s very true. Except for stuff that is out of the price range of most people (say, private jets), very little seems to be considered a luxury these days.
just going to play devil’s advocate…
I think that a console can be a great investment for lower income people…given they play it often. For example going out for a dinner, movie, and drinks every weekend for two months is essentially the same using your console instead. Remember, consoles can also allow you watch Netflix, play DVDs, work out etc – so it’s really difficult to get bored of them if you know how to use it right.
TVs on the other hand are cheap if you get them right. You can get the 20 year old ones from the curb once in a while, slightly nicer ones on Craigslist for an affordable price. It’s possible to be poor and afford a TV….maybe not an HDTV though..hmmm!
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Hey Vancity – fair enough. I do think that getting a few things to entertain yourself at home can definitely be worth it – particularly if you have children. It’s only if you couldn’t afford them at all in the first place you run into trouble.
I agree with Jeremy, some people live a luxurious lifestyle on credit. The credit card industry has always intended it this way and they got their way (unfortunately).
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I would say that computer and internet access is a requirement. Yes, some libraries have computers but at my local library the wait times are long and with children in school I would have to go every single day. Computer access is a requirement for children at school. Starting in middle school my children no longer received any handouts or info on paper – it was all online. Teacher communication was through email, school newsletters, etc. online at the school website. Add job hunting (as mentioned in the article), coupons and sales for groceries, as well as access to government benefit information. In my opinion, I think you need the computer and internet access.
Martine – yes, I don’t have children myself, but I’ve heard from others it’s basically impossible to function/connect with the school system if you don’t have a computer and internet. And going to the library each day is pretty darned cumbersome!
I think it depends on the stories behind everything. Were things given to them as a gift (i.e. the console or tv) or bought before hard times? Plus, some poor people wait for the magical time of year known as tax return time to buy the bigger items. Now if they are buying those things but not food? Yes, that is an issue. I just think people need to know all the facts behind things before judging.
Phone/internet/air conditioner? Yes to the first too-job hunting and interview are important. The air conditioner? I’d say it depends on where you live. A few weeks back my ac broke it was almost a 100degrees in my house. (okay 95 but still! It was rising) I had fans and windows going but there was no break in the temp.
bogofdebt recently posted..I need to go shopping soon….
I’m with you bog. I don’t link I could live without A/C – and in a lot of people’s cases, that is literally true – it’s simply too hot to be safe for them!
One of the articles I read suggested that many of these items are bought after receiving tax refunds, which I think is quite accurate. I also think that there isn’t a ton of thinking in terms of where the money is going when you consider budgeting to get items, saving for the future, etc. My friend told me a student of hers had typed up a college essay on her phone because her family didn’t have a computer. The amount they paid in cell phone bills, unlimited texting, etc in a few months could have bought a simple computer. (She worked with mostly low income families—and yes, many of them managed to have an XBOX, including XBOX Live which requires a paid subscription.)
I really don’t see a microwave as a big deal—they’re easy to get (even for free), most of them last forever (hyperbole) and the most basic ones aren’t terribly expensive. But video game systems are expensive and most people regularly acquire new games. As for air conditioning, I think that can be highly regional. Interesting research that I believe speaks volumes.
thethriftyspendthrift recently posted..Getting Ready for Our “Frugal” Vacation
Yes – some folks can view a tax refund as a windfall, which it really shouldn’t be. That sounds nuts about the essay – I don’t even know how you’d do that! And I agree – a microwave is cheap and a useful cooking instrument, but an Xbox is not so much a necessity.
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I agree with your sentiments. But be careful and thoughtful with new purchases — particularly new technology ones which seem to embody the greatest challenges to our sense of self and self-need. Thanks for this blog.
Glad you’re enjoying it!
Great article, you raise some very valid points! I would say you are certainly not poor!