What Is the Definition of Poverty?

The most widely held and understood poverty definition measures global poverty just in economic terms — earning less than $2.15 a day. By this measurement, anyone without enough financial resources falls below the poverty line and fails to meet a minimum standard of living.

But to be poverty-stricken is deeper than not having enough money or having a low income. The fullest definition of poverty now goes beyond just the amount of money a person or family earns.

Poverty Definition

Instead, poverty affects a person’s entire wellbeing — physically, emotionally, mentally and spiritually. It means to be overwhelmed by need in all areas of life.

Poverty is hunger. Poverty is lack of shelter. Poverty is being sick and not being able to see a doctor. Poverty is not having access to school and not knowing how to read. Poverty is not having a job, is fear for the future, living one day at a time. Poverty is losing a child to illness brought about by unclean water. Poverty is powerlessness, lack of representation and freedom.

— World Bank

How Do the Poor Experience Poverty?

Those living in poverty experience it in many ways:

  • Physically, a person may be sick from unclean drinking water or exhausted from the stress of not having a job to provide for their family.
  • Mentally, they may be overwhelmed by thoughts of “how do I feed my family?” or “where will we live?”
  • Emotionally, they may be overrun with fear, anxiety or depression.
  • Spiritually, they may feel as if there’s no hope for the future.

Those living in poverty know what it’s like to have their rights and freedoms restricted. They live without support, on the sidelines, watching economic growth and prosperity pass them by. Their dignity is assaulted every day, and their lives are abundant … in scarcity.

NEARLY 10% of the world's population lives in extreme poverty, below the $2.15 per day poverty line.

Source: World Bank

What is Child Poverty?

Child poverty is often defined as children living in low-income families at or below this poverty line. However, it’s important to recognize that child poverty is also far from just economic.

When we consider what actually causes poverty, we realize that money is only part of the solution, particularly when children are involved.

While poverty also affects a child’s entire physical, mental, emotional and spiritual wellbeing, the effects are worsened for these little ones. Poverty shapes a child’s development, affecting their attitudes, behaviors, beliefs and dreams.

How Does Poverty Affect Children?

We often consider childhood a time of innocence. Childhood should be a time for learning, playing and exploring all the possibilities the world offers. But children living in poverty don’t have that experience.

The effects of poverty on children are wide-ranging and far-reaching. For example, when early childhood development is hindered, we see many long-term effects, such as chronic illnesses due to a lack of adequate nutrition and medical care early in life.

Anxiety, fear and a lack of self-confidence can keep children in poverty from pursuing new opportunities. If they’re abused, they often don’t have the skills or resources to speak up for themselves and can easily be ignored, leading to more abuse.

A child’s psychology is also impacted by poverty. Children who do not have confidence or support often believe the world wants them to fail, and they give up.

Children who live in poverty learn hopelessness. They grow up believing that the world doesn’t get better and that their situation will never change. It didn’t change for their parents, it wasn’t any different for their grandparents, and their own children will experience poverty as well.

Two young girls stand in front of their home, smiling and giggling for the camera.

The Different Forms of Poverty and Compassion’s Response

At Compassion, our mission is to release children from poverty in Jesus’ name. And while there are many types of poverty that can impact children, we work to release them from it all.

  • Spiritual poverty: God loves all his children, including those living in poverty. Unfortunately, without an understanding of this love, children in poverty have no hope. But the gospel changes everything! That’s why Jesus is at the center of all we do. By sharing the gospel, these children learn they’re valued and loved, giving them hope in the midst of their circumstances.
  • Social poverty: A culture or government that devalues people, especially children, cultivates social poverty. We work with these systems to encourage the idea that children are valuable and should be given the opportunity to flourish.
  • Educational poverty: For millions of children in poverty, education is a luxury they just can’t afford. But a lack of education creates a lack of options, such as quality employment, and makes children vulnerable to exploitation. We provide resources for children to obtain the education they need, from traditional education to skills training. As a result, they have the confidence and tools needed to create a brighter future for themselves and others.
  • Health poverty: Many children living in poverty don’t have access to clean water or medical care. They may also lack the knowledge needed to properly care for their bodies. We provide yearly medical checkups, hygiene training and ongoing medical assistance to ensure children have the healthy bodies needed to grow.
  • Environmental poverty: Physical surroundings like climate, water supply and housing affect our wellbeing. Poverty includes extreme environmental risks for many, from waterborne illnesses to extreme weather such as drought and flooding. We work to ensure environmental conditions don’t make extreme poverty inescapable by providing things like water infrastructure and support after natural disasters.
  • Economic poverty: You’ve learned here that a lack of money isn’t the only cause of poverty. However, having the finances to buy food and other essentials is critical for life. Many people living in poverty must do so on less than $2.15 a day, which just isn’t enough. We provide vocational training and job skills development to help children and young adults create lives filled with economic opportunity.
Young boy wearing a bright yellow shirt sits in a chair with his eyes closed and hands pressed together as he prays.

How You Can Respond to Poverty

The effects of poverty are far-reaching, resulting in physical, emotional, mental and spiritual suffering. Poverty is darkness and those living in it are in desperate need of light.

For the widowed grandmother who can’t work but must take care of her five grandchildren, poverty means fear. Fear that the family won’t survive. Fear that someone may take the children away from her.

For the mother who lost her 2-year-old due to pneumonia while waiting at the hospital for treatment, poverty means overwhelming sadness and guilt. It means asking “why?” It means fearing that the same might happen to her other children.

For the little child orphaned due to AIDS, poverty means a lifetime of medical needs he may not be able to afford. It means extreme vulnerability and a greater risk of exploitation. It means wondering, “Will I ever be loved again?”

But you can be the light in their lives and in the lives of countless others suffering the effects of poverty.

Poverty can be overcome. And child sponsorship can help. By sponsoring a child, you can give them the resources they need to go from surviving to thriving.

For the grandmother and sweet mom, you’ll deliver peace of mind knowing their child is being taken care of. And for the little child, you’ll be a constant source of love and support, helping them rise from their pain and into a brighter future full of hope.

Sponsor a Child Today!

Sponsoring a child in need will profoundly change the future for your child. It will introduce the child to the opposite of poverty — a life fulfilled. It'll change your own life as well.

Frequently Asked Questions About Children in Poverty

Give With Confidence

With Compassion, your donation is used wisely to help children around the world.

Lock IconWe use industry-standard communication protocols to ensure your personal information is encrypted and transmitted without risk.

Trusted Charity Since 1952

Have Questions About Compassion and How We Work?

Donating to a charity is an important decision. So when you’re passionate about a cause and want to make a difference, we encourage you to do your research. Compassion is 100% committed to financial integrity, stewardship and using each dollar wisely. If you have any questions about Compassion or exactly how your donation will be used, please don’t hesitate to contact us.

Questions?

Please call us at 800-336-7676, Monday through Friday, 7 a.m. to 5:30 p.m. MT, to speak with a Compassion representative.