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

Samuel Asuamah Yeboah

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Basic Needs; Discretionary Spending; Debt Repayment; Healthcare Costs; Education and Skills Development; Savings Behavior; Substitution Strategies; Financial Stability (search for similar items in EconPapers)
JEL-codes: D12 D14 I32 J24 R21 (search for similar items in EconPapers)
Date: 2024-08-14, Revised 2024-10-18
New Economics Papers: this item is included in nep-fdg
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