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Navigating Scarcity: An Analysis of Expenditure Patterns Among Low-Income Households

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  • Asuamah Yeboah, Samuel

Abstract

This review systematically examines the expenditure patterns of low-income households, focusing on how limited financial resources influence their spending decisions. It reveals that a significant portion of income is devoted to necessities such as food, shelter, and utilities, leaving little room for discretionary spending. The financial burden of debt repayment, particularly from high-interest loans, is a major challenge, as are healthcare and emergency costs, often exacerbated by a lack of insurance and savings. The review also highlights the prioritisation of affordable education and skills development, the low savings rates driven by immediate needs, and the reliance on informal support networks. Additionally, it underscores the common practice of substitution and bargain hunting as strategies to manage scarce resources. The findings emphasise the need for targeted policies to enhance financial stability and well-being among low-income populations.

Suggested Citation

  • Asuamah Yeboah, Samuel, 2024. "Navigating Scarcity: An Analysis of Expenditure Patterns Among Low-Income Households," MPRA Paper 122642, University Library of Munich, Germany, revised 18 Oct 2024.
    • Handle: RePEc:pra:mprapa:122642
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    More about this item

    Keywords

    Basic Needs; Discretionary Spending; Debt Repayment; Healthcare Costs; Education and Skills Development; Savings Behavior; Substitution Strategies; Financial Stability;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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