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How the Poor Make Better Financial Decisions Than the Wealthy

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In this Thursday, Nov. 27, 2014, photo, a woman pays for merchandise at a Kohl's department store in Sherwood, Ark. Relying on credit for holiday shopping without a plan to pay off the debt quickly can easily cost you more in the long run. (AP Photo/Danny Johnston)

(AP Photo/Danny Johnston)

 

(Slate) – People often assume that the poor are less competent than the wealthy. Some even suggest that the poor have flawed values or ways of thinking. But my colleagues and I have recently found that the poor outperform the rich at some financial decisions. Under poverty, people develop a unique expertise.

To appreciate this expertise, we should first come to terms with a mistake nearly everyone makes. Consider this question, which I regularly pose to my MBA students: Imagine you are buying a $300 tablet, but the salesman says the same tablet is available for $50 less at a store 20 minutes away. Would you travel for the discount? Almost certainly. Now imagine that the tablet costs $1,000. Would you still travel the 20 minutes to save $50? Now you might hesitate.

You are not alone. People are far more likely to say “no” to the second question than the first, even my MBA students, whose jobs are to make good financial decisions. This is a common response. It is also irrational.

If you value 20 minutes of your time at $50 in one case, then you should in the other case as well. The price of the tablet has nothing to do with it. Puzzles like this lie at the root of behavioral economics, which highlights errors in the way nearly everyone makes decisions. But as common as this mistake is, one group is relatively immune to it: the poor.

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In 30 Years, Supporters of Swim A Mile | Move A Mile for Women with Cancer Raised $8 Million

Over the last 30 years, participants have raised over $8 million and moved more than 14,000 miles—the equivalent of crossing the United States more than five times. All in support of WCRC’s free cancer services in Alameda and Contra Costa counties.

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Supporters of the Swim A Mile | Move A Mile campaign over the years. At left are swimmers from 2023 and from 2001 (?) at right. Courtesy photos.
Supporters of the Swim A Mile | Move A Mile campaign over the years. At left are swimmers from 2023 and from 2001 (?) at right. Courtesy photos.

By Kate Eaneman
Special to The Post

When staff at the Women’s Cancer Resource Center started a fundraiser in 1995, they weren’t trying to create a high-profile event. They just wanted something meaningful: something that could bring people together to raise funds for East Bay women facing cancer.

They called it the Swim A Mile for Women with Cancer. There were no rankings, no competition, no stopwatch at the end of the lane. Just people swimming a mile at their own pace, in honor or memory of someone they cared about, and raising what they could to support WCRC’s work.

In the years since, the event has shifted and stretched. It’s been held at several pools across the East Bay, including Holy Names and its current home at Northeastern University in Oakland, formerly Mills College. For a few years, a second swim was held in Marin.

And in 2020, the event changed again — this time, out of necessity. With the pandemic forcing large gatherings to stop. It also meant, however, that opportunities were opened. People were invited to swim, walk, or move a mile however and wherever they could. That year, the event became the Swim A Mile | Move A Mile for Women with Cancer, and the name has stuck.

Some participants now ‘move their mile’ from neighborhood parks or home treadmills. Others return to the pool each spring. Whichever they take part, everyone fundraises. That money makes up more than a quarter of WCRC’s annual budget.

Over the last 30 years, participants have raised over $8 million and moved more than 14,000 miles—the equivalent of crossing the United States more than five times. All in support of WCRC’s free cancer services in Alameda and Contra Costa counties.

WCRC was founded in 1986 to serve people facing cancer who were often left out of traditional systems of care. Most clients today are low-income, and the majority are women of color over the age of 50.

The organization provides free therapy, support groups, wellness classes, and patient navigation, all rooted in cultural humility and community connection.

What has kept the event going isn’t marketing or corporate backing. It’s people, many of whom come back year after year. Some swim to honor a friend or family member. Others move in memory of someone they lost. For some, it’s a tradition that’s lasted across generations.

Janet started participating in 1997. At the time, she swam with her children. Now, her grandchildren take part, too. “Yes—it’s my very loving and supportive family,” she said.

She continues to participate each year because she believes in the work. “Raising money to support the services offered by the WCRC keeps me feeling good.” When asked what has stayed with her over the years, she answered simply: “Resiliency and community.”

That’s what Swim A Mile | Move A Mile has represented for 30 years. Not a race. Not a performance. Just people moving together for something that matters.

The 30th annual Swim A Mile | Move A Mile for Women with Cancer will be held May 3–4 at Northeastern University in Oakland (formerly Mills College).

To register, volunteer, or learn more, visit: wcrc.org/swim.

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Oakland Post: Week of April 23 – 29, 2025

The printed Weekly Edition of the Oakland Post: Week of April 23 – 29, 2025

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Oakland Post: Week of April 16 – 22, 2025

The printed Weekly Edition of the Oakland Post: Week of April 16 – 22, 2025

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