Woman Shares Reminder That 'You Can’t Financial Literacy Your Way Out Of Poverty'
Escaping the cycle of poverty is much more complicated than many make it out to seem.
AleksandarNakic | Getty Images Signature Poverty is a relentless struggle, not just in the U.S. but across the globe. It’s a complex issue that won’t be solved overnight and will likely take years of effort to improve the quality of life for those affected. It also requires compassion, especially in how we view and treat those living in poverty.
Lil’ Lo, a TikTok creator and podcast host, recently shared a video addressing this very issue. She emphasized that escaping poverty isn’t a simple feat and that solutions go beyond just financial literacy education.
A woman asserted that financial literacy alone can't always help a person escape poverty.
On TikTok, Lil’ Lo stressed, “You can’t financial literacy your way out of poverty. Thinking people lack financial literacy just because they prioritize joy or confidence for once is absolutely… insane.” She went on to explain why financial literacy alone isn’t enough, adding, “I don't think y'all realize how much you're perpetuating the…negative stereotypes of poverty. You're making it seem like poverty is just thrust upon people, and they do nothing to get out of it, when in reality, it’s cyclical.”
Poverty is the result of a broken system and shouldn't be blamed on an individual's lack of financial knowledge.
What Lil’ Lo’s frustration revealed is the false belief that financial literacy alone can help people escape poverty. She argued that many are trapped, especially when they lack the resources to meet basic needs.
Struggling financially isn't about a lack of knowledge but about surviving within a difficult system. Lil' Lo criticized the tendency to blame individuals for their poverty, noting it perpetuates harmful stereotypes and ignores the fact that poverty is cyclical, driven by systemic forces that keep people stuck.
She also emphasized that being poor is expensive in hidden ways, such as higher costs for basic goods. For instance, certain stores with higher-priced items are often placed ironically in poorer neighborhoods, making it even harder for residents to escape financial hardship.
Ultimately, Lil' Lo argued that financial literacy programs, while well-intentioned, do not address the real issue — the need for higher wages and a fairer economic system.
Privilege plays a much bigger role in financial independence than financial literacy.
In a Stitch of her video, user angerandautism agreed, saying, “100 percent.” He talked about the privilege some people have — privileges that allow them to buy a car to get to work or make a down payment on a condo because their parents helped them.
He emphasized that not everyone has that kind of support and urged people to recognize their privilege. He also stressed the importance of stopping the blame on a lack of financial literacy, pointing out that it’s not always about people’s choices but rather the resources and opportunities available to them.
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They're very right. According to statistics shared by the United States Census Bureau, in 2023, the official poverty rate fell by 0.4 percentage points to 11.1 percent. However, there were still 36.8 million people living in poverty in 2023, a number not statistically different from 2022. Furthermore, according to The USA Leaders Building America, the United States continues to rank among the nations with the highest child poverty rate at 20.9%, significantly surpassing the global average of 11.7%.
According to The USA Leaders Building America, as of 2024, the states with the highest poverty rate in the U.S. are Louisiana (18.9%), Mississippi (18%), New Mexico (17.8%), and West Virginia (16.7%). The unemployment rates are 3.9%, 2.7%, and 4.1 % respectively. This proves Lil’ Lo’s point that poverty is systemic.
Further evidence reinforcing Lil' Lo's argument includes Louisiana's history of racial discrimination and economic struggles. According to the latest data, only 27.1% of Louisiana residents are proficient in reading, and the state has the second-highest childhood poverty rate in the U.S., with 26.8% of children living in poverty.
Mississippi, one of the poorest states in America, has a complex history tied to slavery in the Mississippi Delta, which continues to contribute to its persistent poverty. In New Mexico, many jobs pay less than $12 an hour, making it difficult for families to meet basic needs. West Virginia, once heavily dependent on coal mining, has experienced job losses and a decline in tax revenue due to the industry's downturn. This has impacted government funding for public services, infrastructure, and social programs.
Financial literacy is only a fraction of what’s needed to fight poverty. What’s truly required is a lot of compassion and a collective drive to do the hard work necessary to make lasting change.
Mina Rose Morales is a writer and photojournalist with a degree in journalism. She covers a wide range of topics, including psychology, self-help, relationships, and the human experience.