Building Family Economic Success: The High Cost of Being Poor

Food for Thought

Inner-city families who lack access to supermarket chains pay 22% more — and families in low-income rural areas 17.5% more — than the U.S. Department of Agriculture’s recommended budget for basic food items.

Utility Inequality

From 2000 to 2001, low-income families spent almost 20% of their annual income on energy bills. In comparison, all other consumers spent just 4% of their annual incomes on these bills.

Sources of Sticker Shock

High price tags found in low-income areas stem from multiple factors, including: 1) a lack of access to large retail stores; 2) the work of predatory lenders; and 3) aggressive marketing efforts by credit card companies.

Casey in Action

Ways that the Annie E. Casey Foundation has worked to reduce high costs for struggling families include: 1) distributing information about the buying power of low-income communities; 2) promoting policies to lower the costs of consumer and mortgage lending; and 3) supporting anti-predatory lending laws and regulations.

Cost-Cutting Challenges

Long distances and low population densities can make it difficult to offer affordable goods and services to rural areas.

Not a Simple Fix

Working to ease the burden of higher costs paid by low-income families requires a complex mix of changes in government policies and private sector behaviors.