Poor, Rich, and Middle Class - who are they?

For the book I'm thinking about I need to define the terms rich, poor, and middle class.

Who are the poor? 
According to the 2018 US Poverty Guidelines, a family of four making $25,100 or below are considered poor.  That sounds straight forward, but what does it really mean?  Does this family have hungry teenagers or a baby that needs expensive formula?  Do they live in income support housing or does their rent take half their income? What about the family making just above the line that has no food stamps or SNAP benefits?  What about the multitudes of families making under the equivalent of $2 a day in US dollars living in other countries?

Who are the rich?
There seems to be much less consensus on what it means to be rich.  Some statistics use twice the average income as a guideline.  In 2016 the median household income was $59,039.  That means any household making  $118,080 or above would be considered rich. This of course does not take into account the number of people in the family or debt.  While people in the lower end of this category are most likely not struggling for daily needs, they also might not have money for extravagant extras.  Is this rich?  Another way to draw the line is to call the top 1% of earners wealthy.  This would include any family making $389,436 or above, but I'm not sure it takes that much to be considered rich.

Who are the middle class?
According to one website, middle class is anyone earning between 67% and 200% of the median income.  For 2016 this range would be $39,560 to $118,080.  This encompasses about 50% of Americans.  That seems to leave a gap between lower middle class and the US Poverty line, but at least it tells us that these are the folks in the middle - in-between rich and poor.

For me the numbers don't tell the whole story.  By these stats, I would be upper-middle class.  If I compare myself to people who make more than my family, who travel and dine at expensive restaurants, I feel much more lower middle class.  My family pays our bills and we are able to put our children in extra-curricular activities, but we are not extravagant and money is tight at times.  Then I compare myself to people making less.  Their kids are not taking gymnastics lessons.  They run out of food before the month is up.  They don't have securities like renter's insurance.  Compared to them, I probably look rich.  Additionally, if we look outside our borders - to so many people without running water or electricity, we would all be considered rich.

So, if the numbers fail me, how do I even get a handle on the title of this book?

I am left with my own, subjective, definitions:

Poor - any person or family that struggles to meet their basic needs of food and shelter.

Middle Class - households that have finances to meet their basic needs and provide a few extras but may not have resources for emergencies or extravagances

Rich - those who are comfortably meeting their needs, provide for future expenses and emergencies and have extra for charity and fun.

My definitions are still inadequate, but they give the reader a general idea of what I mean when I use these terms.  I also want to emphasize that I am putting no emotional connotation on these labels.  Too often our society connects a person's value to the amount of money they earn.  In this book, and in my life, I am hoping to let people see that value has nothing to do with wealth.

Let's Share

Chapter
Many people have the idea that people living in poverty are always begging for something.  When I was growing up, I experienced this with one of my aunts.   She lived in the inner city and worked a low paying job.  She was a wonderful, loving woman, but it seemed like whenever she visited, she asked for something. For example, if my mom had a new performance tape, my aunt would ask for a copy. (They both sang in church.)  She seemed to think that whatever we had that she did not should be split with her.  It wasn't until years later that I began to understand this mindset.

The light went on when I read a book about a woman who worked in California picking crops.  She discovered that it was the other workers who would teach her how to harvest the food correctly and even share their portion with her when she was first learning.  Neighbors showed up at her door with food when they had extra.  They shared rides and information with her.  This group of strangers bonded together because it was the best way for the whole group to survive.  From this story I began to realize that many poor people  are more than willing to give you whatever you need and they are confused when someone else does not do the same for them.  This sharing mentality is very different from the independent, take care of yourself mindset I grew up with.  I'm not saying either one is better than the other, but I think it helps to see things from someone else's perspective. 

I saw this sharing concept in my own life when a friend of mine got her food stamps for the month.  She went out that day and bought food for herself, for a church breakfast, for a sick neighbor, and a treat for me.  These gifts were given with no strings attached.  She was simply sharing her own blessings.

Maybe my selective memory only recalls the times my aunt asked for help.  Maybe I've forgotten all the times she brought food for us or gave me little gifts.  Maybe living on the boundary between middle class and poverty caused me to cling to whatever I had and fear losing it.  Maybe I can still learn to share.

Poor, Rich and in the Middle

I'm thinking about a new book idea.  I've been learning the past few years that people of various income levels really don't understand each other.  I would like to use some of what I have learned to build a bridge.

Introduction:

"Rich people are greedy."  "Poor people are lazy."  "Why do 'those' people live like that?"  I've heard these statements all my life, but what I've learned is that kind, generous people can be found in all socio-economic levels.  However, it is true that most of these people don't understand each other.  Each of us sees life through a certain point of view.  It's like a pair of tinted glasses that colors our whole life.  Our glasses are shaped by our upbringing, our family, and our life experiences. It takes great effort to get to know someone who is different than you and to see life through their pair of glasses instead of your own.  It's a lot easier to judge people based on our own values and circumstances.  However, if you take time to understand others, they can add diverse and interesting dimensions to your life.

(Chapter 1 or continuation of the Introduction)

I guess I should start with my own background since that, of course, colors my life perspective.  My parents were divorced so I grew up in two different households. My mother worked two jobs most of my childhood years.  When she married my step-dad, he had a lot of debts.  Then they bought a house that they probably could not afford.  So, despite my dad also working full-time, we had no extra money.  My clothes were given to me or bought at thrift stores.  We ate a lot of hot dogs and macaroni and cheese.  I'm pretty sure my mom never chose to ask for or receive charity and we did not qualify for state aide.  The lessons I learned from my mom were to value hard work, to pay your bills, and to live with what you had.  Later, as my mom struggled to get our of debt I learned to hate credit.

My dad came from a family that understood investing money and living below your means.  My dad retired early.  His bank account was stable, but he chose to wear socks with holes in them and repeatedly told me that "money does not grow on trees."  My dad is not a flashy rich guy.  He is a frugal rich guy.  He does not waste a penny if he can avoid it.  From him I learned that having money was security.  Also, it was a tool to be respected.

As I grew up I had the typical middle-class dream.  I wanted a good job and a savings account.  I didn't want a bunch of stuff but enough to be 'comfortable.'  Then I got married.  I knew all the rules for financial safety - avoid debt, save 10% of every check, buy used, don't waste... My husband agreed in theory but then we 'needed' a computer and the store had a 6 months at 0% interest loan.  We paid it off before the interest kicked in but I still felt like a failure for relying on credit.  Over the years we began to build up debt for other things we 'needed'.  My dreams of a safety net savings account never seemed to materialize.  We did start having money pulled out of our checks for retirement investment and I felt joy watching that grow.  So, instead of fighting about money, I try to enjoy the toys we have and I've also found ways to be generous and help others.

That's a brief overview of my perspective on money.  Work hard, pay your own way, save for the future, and avoid debt.  Despite evidence to the contrary, I thought that deep down everyone must agree with me.  Then I started to try to 'help' poor people.  I found out that their reality was very different from mine and my rules did not necessarily work for them.  My colored glasses didn't seem to fit so well any more.  I also found many people who resented rich people.  The pictures they painted were nothing like the actual people I knew.  So, maybe I am in a unique position to explain these groups to each other.  Maybe we can all take off our glasses and see each other as people of value who can enrich each other's lives.



Ideas for Chapters:

Gimme, gimme or let's share?
Why do we feed poor people crappy food?
Maybe they didn't need my help as much as I needed theirs.
You waste money too
Rich people are not heartless