The importance of the issue of poverty and its features

It was therefore concluded that better financial management abilities as a component of financial literacy result in a behavioral, rather than cognitive, benefit in helping individuals to cultivate a habit of borrowing less and avoiding high interest rates, thus decreasing overall debt.

This is also associated with cognitive load, and potentially with ego-depletion. To summarize, research has shown that poverty impacts executive functions directly, and indirectly via cognitive load in the form of negative affect and stress.

This led to the discovery that wealth inequality is largely caused by deficiencies in financial management. Concentrated collective poverty In many industrialized, relatively affluent countries, particular demographic groups are vulnerable to long-term poverty.

A persistent regulation of basic needs can thus lead to reduced self-control Hofmann et al.

characteristics of poverty

However, other studies Cornelisse et al. These findings allow us to propose a complex conceptual model, which reflects the consequences of poverty on economic decision-making via a cognitive mechanism that rationalizes these relationships.

Frederick found that individuals with more deliberative reasoning higher cognitive reflectionwere more inclined to risk-taking, especially when the potential reward was high.

Therefore, investment should be made in different sectors like clean drinking water, education, health, and sanitation for reducing poverty.

types of poverty

They claim that the preference of a smaller immediate reward is due scarcity of resources faced by poor people, who are often at risk and have reduced self-control and display impulsive behavior.

People can fulfill their basic needs but not as much as other rich people.

The importance of the issue of poverty and its features

Despite the finding that stress does not fully explain the observable decline of cognitive functions, Mani et al. Attention Attention is the ability to select and focus on relevant information in the environment, whilst ignoring other information of lesser task-related importance Kastner and Pinsk, ; Lui and Tannock, A persistent regulation of basic needs can thus lead to reduced self-control Hofmann et al. Additionally, poor children are much more likely to suffer from hunger, fatigue, irritability, headaches, ear infections, flu, and colds. Cognitive load can have a negative impact on self-control capacity. Keywords: poverty, scarcity, poverty trap, cognitive load, executive functions, economic decision-making, time-discounting, risk preference Introduction Poverty is a global socio-cultural phenomenon usually examined from an economic perspective. It can be measured in quantitative terms.

Their livestock numbers have continued to deplete primarily due to the need to sell or exchange animals usually sheep for necessary items, such as flour, rice, clothing, cash, etc.

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Poverty Eradication