Poverty in economics refers to a state or condition in which people or communities lack the financial resources and essentials for a minimum standard of living. Poverty is not just about not having enough money to meet basic needs such as food, clothing, and shelter, but it also includes not being able to participate in recreational activities, not being able to pay for medications for an illness, and not being able to send children on a day trip with their schoolmates or to a birthday party. Poverty is a complex societal issue that has many faces, changing from place to place and across time, and has been described in many ways.

There are different ways of measuring and categorizing poverty, and no simple, unified definition. The most widely held and understood definition of absolute poverty measures poverty strictly in economic terms, earning less than $2.15 a day. Relative poverty defines poverty in relation to the economic status of other members of society. The World Bank has been studying and measuring the global poverty level for decades and has expanded upon the traditional economic definition of poverty to define poverty holistically.

In addition to a lack of money, poverty is about not being able to access basic needs such as clean water, healthy food, and medical attention. Poverty is both an individual concern as well as a broader social problem. On the individual or household level, not being able to make ends meet can lead to a range of physical and mental issues. At the societal level, high poverty rates can be a damper on economic growth and be associated with problems like crime, unemployment, urban decay, education, and poor health.

Welfare programs are used by governments to help alleviate poverty. However, poverty is a complex issue that requires a multifaceted approach to address its root causes and effects.