High-Fee Checking Accounts
Lower-income people often can't maintain a high enough balance to avoid monthly fees. I used to pay $5-$10 monthly until I could maintain the minimum balance.
Taxis and Ride-Shares
Lower-income individuals often rely on public transportation. If services are unreliable, they have to spend on costly taxis or ride-shares across the city.
Pawn Shops and Thrift Stores
When money is tight, affordable clothing or household items become a priority. Lower-income individuals turn to pawn shops or thrift stores, sacrificing quality for affordability.
Interest and Cash Advance Fees
Lower-income people often live paycheck to paycheck. When bills can't be paid on time, they rely on payday loans and cash advance services with high interest rates.
Rent-to-Own Stores
Rent-to-own stores seem convenient but end up costing more over time, straining budgets.
Processed Foods
Lower-income individuals often work multiple jobs. To save time, they buy frozen or processed foods. When I had a lower income, my diet was higher in processed foods.
Grocery Delivery Services
Short on time and without a vehicle, lower-income people may opt for grocery delivery. I spent an extra $50 monthly on delivery fees when I had a lower income.
Housing Costs
Housing is a major expense for lower-income individuals. Renting is convenient but costly. Homebuyers often pay private mortgage insurance unless they can put down 20%.
Insurance Coverage
Lower-income individuals spend on necessary services that higher-income brackets rarely consider. This creates a stark disparity in insurance coverage.