Understanding the Cycle of Poverty

Why do some people seem to achieve success while others remain stuck in poverty? Is it talent, intelligence, or pure luck? The answer might be simpler than we think. Delaying gratification—the ability to resist immediate rewards in favor of larger ones later—is a key factor that separates those who achieve long-term success from those who do not. But how does this work, and why do so many people find it hard to break the cycle of poverty?
In this article, we’ll explore how the cycle of poverty works, what it means for future success, and how we can start changing these patterns for a better life.

1. Delaying Gratification: A Key to Success

One of the most critical traits of successful people is their ability to delay gratification. This means resisting the urge for an immediate, smaller reward in exchange for a larger, more significant reward later on. For example, skipping that extra hour of scrolling on Instagram to study for a test or forgoing an impulse purchase to save money for an investment. Research has shown that those who can delay gratification tend to perform better in academics, manage stress more effectively, and maintain healthier social relationships.
In the 1960s, Stanford University psychologist Walter Mischel conducted the famous “Marshmallow Test.” In this experiment, young children were given a marshmallow and told they could either eat it right away or wait 15 minutes to receive a second one. Some children ate the marshmallow immediately, while others waited for the promised second treat.

2. The Long-Term Benefits of Delayed Gratification

Years later, Mischel followed up with the same children to see how their lives turned out. The kids who were able to wait longer for the second marshmallow generally fared better in life. As teenagers, they scored higher on standardized tests, had more self-confidence, and displayed better social skills. As adults, they were less likely to struggle with addiction or experience major life setbacks like divorce. Their ability to delay gratification had a lasting impact on their success.
In contrast, the children who couldn’t wait often struggled more as they grew older. They had difficulty staying focused, managing stress, and forming lasting friendships. The lesson here is that learning to delay gratification can significantly shape our futures.

3. The Role of Socioeconomic Background

While the Marshmallow Test showed the benefits of delayed gratification, recent studies suggest that a child’s ability to wait for the second marshmallow might be influenced more by their family’s financial background than by inherent traits. In 2018, researcher Tyler Watts conducted a larger, more diverse study that challenged Mischel’s original findings. Watts found that children from wealthier families were more likely to wait for the second marshmallow, while those from poorer households were more likely to eat the first one.
Why does this happen? For kids from lower-income families, life often feels uncertain. They might not know if there will be food in the fridge tomorrow, or if their parents can fulfill promises due to financial struggles. This unpredictability makes it harder for them to trust that waiting will result in a bigger reward. On the other hand, wealthier children are more accustomed to stability and trust that a bigger reward will come later because their parents can afford to keep their promises.

4. Poverty and Short-Term Thinking

For people living in poverty, short-term rewards often make more sense than waiting for a future payoff. A child from a low-income household might think, “Why wait for a second marshmallow when I can have one now?” This mentality extends into adulthood, where people in poverty are more likely to spend their money on small pleasures, like fast food or new clothes, as soon as they get paid, instead of saving for long-term financial stability.
This isn’t just about a lack of discipline. It’s about survival. When life is unpredictable, it feels safer to take what you can get now, rather than risking the wait for a potentially better but uncertain future.

5. Breaking the Cycle of Poverty

Understanding this cycle is the first step to breaking it. People who grow up in poverty aren’t destined to remain there forever. Delayed gratification is a skill that can be developed over time, much like a muscle that gets stronger with practice. By setting clear, long-term goals and consistently working towards them, anyone can improve their ability to delay gratification.
It’s also essential to create a sense of security, even in uncertain financial situations. If you’re trying to save money, make your savings goal feel real and valuable. For example, instead of focusing on the immediate reward of buying something now, focus on the bigger goal of financial freedom in the future.

6. The Influence of Family and Environment

A child’s upbringing plays a significant role in shaping their ability to delay gratification. As shown by Tyler Watts’ study, children from wealthier households are more likely to have the security and stability that encourages long-term thinking. Wealthier parents are also more likely to teach their children about saving, investing, and the importance of education.
Meanwhile, poorer families might not have the luxury of teaching these lessons, because they are focused on immediate survival. This isn’t to say that people from low-income backgrounds can’t achieve success—many do—but it does highlight how difficult it can be to break the cycle without support and guidance.

Conclusion: Overcoming the Cycle

The cycle of poverty can be challenging to break, but it’s not impossible. By understanding how delayed gratification plays a role in long-term success, we can start to change the way we approach money, education, and life decisions. Delayed gratification can be learned and strengthened, but it’s also important to recognize the broader social and economic factors that contribute to this cycle.
If you’ve found this topic interesting and want to explore more, check out this (https://www.youtube.com/watch?v=bJj-eNDTUmc) for deeper insights into the cycle of poverty and how it keeps people stuck. It’s never too late to start building a path toward financial freedom, one small decision at a time.