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Public Perception versus Reality: Study on Homeless Spending Habits Explores New Possibilities

Published September 21, 2023
9 months ago

A paradigm-shifting study, led by researchers from the University of British Columbia, is challenging preconceived opinions of the worldwide public towards the spending habits of the homeless population. The groundbreaking research contradicts the longstanding perception that money given to individuals experiencing homelessness will be spent recklessly.



A cohort of 50 homeless individuals in British Columbia, Canada, was granted $7,500 each, along with transitional housing, where they were expected to contribute towards rent and food expenses. Surprisingly, the recipients utilized this sudden windfall wisely by spending it on essentials; notably rent, clothing, and food, saving almost $800 per recipient in terms of government provision of shelter accommodation.


The research findings further disclosed that the recipients spent 99 fewer days homeless and had an overall increase of 55 days in stable housing, with savings of over $1,160 intact. In comparison with a control group of 65 homeless individuals who weren't recipients of the financial assistance, the expenditures on 'temptation goods’ remained proportionate.



This trailblazing research, creating traction in the South African context, reignites possibilities for targeted assistance programs. It signifies that homelessness should no longer be viewed as a self-inflicted situation but rather be addressed with differentiated services attuned to individual needs. This could help in reducing and ultimately ceasing the surging numbers of street communities.


This groundbreaking study, forwarding a strong case for a basic-income policy, implies that a one-size-fits-all approach may not be the optimal model. The longer this grappling issue exists, the more complex the prospective interventions become for reintegrating these individuals society.


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