5 Key Characteristics of the Lower Class: Do You Have Them?
Jakarta, CNBC Indonesia - President Prabowo Subianto recently stated during his speech at the World Economic Forum (WEF) in Davos, Switzerland, that Indonesia’s extreme poverty rate continues to decline to its lowest level. This remains a primary focus for the government, alongside hopes to eradicate poverty and improve the economic standard of the population.
A number of indicators can be used to categorise society into specific economic groups. Citing GoBankingRates, there are five common characteristics associated with the lower-middle and lower classes:
- Housing
Housing is one of the largest expenses for any family. If you struggle to afford a comfortable and safe home in a decent neighbourhood, this could be an indicator that you belong to the lower-middle or lower class.
- Employment
Certain types of jobs clearly fall into the categories of white-collar or blue-collar, which automatically reflects a working-class or middle-class image. Jobs such as restaurant servers, truck drivers, retail employees, manufacturing workers, and cleaning services usually indicate a lower economic position. “You are considered middle class if you work in a managerial or specialist position,” said Nathan Brunner, CEO of Salarship. Conversely, if your job requires low skill or is a temporary position with low wages and few benefits, you will generally be placed in the lower class. However, professions such as teachers, nurses, accountants, and IT workers can sit between the working class and the middle class, depending on their level of seniority and certification. Even white-collar careers, often viewed as prestigious, can still provide moderate salaries that place workers in middle-class life.
- Savings and Investment
Saving and investing are vital financial buffers and provide opportunities to build long-term wealth. However, building such reserves is a luxury that is not always accessible to the lower classes. This means that if you do not have sufficient savings or a retirement plan, you can certainly be classified within the lower class.
- Lifestyle
Are you able to go on holiday every year? Do you frequently eat out or buy new items without too much worry? If so, such small pleasures require a foundation of financial security. These activities indicate there is room in the budget for small enjoyments. If such things feel difficult due to budget constraints, it may be a sign that you belong to the lower class. Of course, smart budgeting can help achieve these small pleasures. However, the ability to choose and the economic freedom to enjoy occasional spending more closely reflects the stability typically held by the middle class.
- Education
Do you hold a bachelor’s degree? If so, you are likely part of the middle class. The highest level of education achieved is a good indicator of your position on the economic ladder. Systemic barriers often prevent individuals from the lower class from accessing education. Higher education usually paves the way to better-paying jobs. However, if university feels too expensive and you are unable to pursue it, it could be a sign that you are in the lower class.