“The lack of financial resources itself can lead to impaired cognitive function. The very condition of not having enough can actually be a cause of poverty.”

Poverty and all its related concerns require so much mental energy that the poor have less remaining brainpower to devote to other areas of life, according to research based at Princeton University. As a result, people of limited means are more likely to make mistakes and bad decisions that may be amplified by — and perpetuate — their financial woes.

Published in the journal Science, the study presents a unique perspective regarding the causes of persistent poverty. The researchers suggest that being poor may keep a person from concentrating on the very avenues that would lead them out of poverty. A person’s cognitive function is diminished by the constant and all-consuming effort of coping with the immediate effects of having little money, such as scrounging to pay bills and cut costs. Thusly, a person is left with fewer “mental resources” to focus on complicated, indirectly related matters such as education, job training and even managing their time.

“When you’re poor you can’t say, ‘I’ve had enough, I’m not going to be poor anymore.’ Or, ‘Forget it, I just won’t give my kids dinner, or pay rent this month.’ Poverty imposes a much stronger load that’s not optional and in very many cases is long lasting. It’s not a choice you’re making — you’re just reduced to few options. This is not something you see with many other types of scarcity.”

The researchers suggest that services for the poor should accommodate the dominance that poverty has on a person’s time and thinking. Such steps would include simpler aid forms and more guidance in receiving assistance, or training and educational programs structured to be more forgiving of unexpected absences, so that a person who has stumbled can more easily try again.

We speak with Jiaying Zhao, an assistant professor with the department of psychology at University of British Columbia, who conducted the study along with colleagues in the United States and Britain.

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RELATED | Princeton University: Poor concentration: Poverty reduces brainpower needed for navigating other areas of life (August 29, 2013) | The Globe and Mail: Study finds being poor places heavy burden on mental capacity (August 29, 2013) | Science: Poverty Impedes Cognitive Function (August 30, 2013) |