Homelessness and impact on financial services Essay


Homeless is the inadequate access to a housing that is safe and secure. Homelessness is determined by a housing that may damage a person’s health, threatens a person’s safety, lacks the provision of normal economic and social support of a home, and places an individual in a situation that threatens or adversely affects the adequacy, security and affordability of that housing (Karhuse, 2011). Homeless has impacts on people in different ways depending on an individual’s personal circumstance. The human rights commission has placed homelessness under violation of human rights.

The commission explains that access to safe and secure housing is vital human rights that every human being, rich or poor, and should enjoy. An individual who is experiencing homelessness faces the violation of the rights to an adequate standard of living, right to liberty, right to education, right to social security, right to privacy, right to vote, among other human right (Karhuse, 2011). These rights of homelessness are protected by a number of human rights body, for example, convention on the rights of the child, international covenant on Economic, social, and cultural rights. Homelessness does not only affect the victims or people who are homeless, it also affects the community through having impacts on the financial services. This paper will explore the effects homelessness has on financial services.

Statement of the problem

Does homelessness have any impact on financial services? Homelessness has been a problem for a long time now. As the years progress, the number of homeless people keep soaring up. The government and other Nongovernmental organizations have tried to come up with solutions for this problem, in vain. As this problem keeps increasing, it has impacts on many sectors, including the financial sector (Karhuse, 2011). Homelessness is not an issue that one may choose to turn a blind eye to; it is a problem that people want to see come to an end. Through the process of doing this, a lot of resources are used, for example, finances. Homelessness affects different kinds of people, for instance, the aboriginals, refugees, women, children, people with mental illness, among other minorities. Sponsors, government bodies, NGOSs, have put efforts towards ending this menace, but homelessness is still a problem (Karhuse, 2011). Thus, the paper will seek to answer how homelessness affects financial services. Homelessness puts a lot of strain on financial services. However, there are ways by which this problem would be solved; thus; reducing the negative impacts that it possess on financial service. This could be done, for instance, through encouraging more donors, or reducing housing costs; thus, making it affordable even to the poor, or less fortunate in the society (Karhuse, 2011).


Homelessness has a negative effect on financial services.

Incorporation of other donors and reduction of housing costs will help reduce homelessness; thus, reduce the negative impacts homeliness has on financial services.

Literature review

Immediately one mentions the word homelessness one tends to imagine the difficult life the homeless people are living; the lack of security, lack of privacy, or the fear the people may be experiencing. The government, Nongovernmental organizations, and other bodies, have come up with various strategies, to deal with the issue. However, studies show that the number keeps increasing every day. In the United States, the issue of homelessness can be traced back to the colonial period when America was established. During this time, the main cause of homelessness was war. Homeless has been found to affect mostly people of a certain race and class. For example, African Americans are among the majority of people in America who have been regarded as homeless, an also those below the poverty level (Terashima, 2005). The mentally ill have also been found to loiter around the streets and spending the night sleeping in the streets due to lack of a home. The low income that the poor get in a month is only to buy them food, but the costs of housing is beyond their means.

In Australia, for example, census figures show that the number of homeless people increases every year. The census showed that 100 000 people in Australia are homeless. This was carried out in 2006, and, till today, it has not shown any decrease in number, but rather it has shown a significant increase. the Census showed that, out of the total population of the homeless people, 10 are under the age of 12 years, 36 are between the ages of 12 and 24, 30 are between the ages of 25 and 44 and 24 are over 45 years. This clearly shows that homeless does not know age. It affects people of all ages (Terashima, 2005).

Homelessness has impacted on different sectors of human life. Firstly, homelessness impact on human rights though violating a number of them. For example, homeless people are denied the right to adequate housing (unhabitat, 2000). The international human rights law asserts that every human being is entitled to the right to an adequate standard of living. This does not only imply that a person should have a shelter, but rather implies that any free person should enjoy the right to live in an adequate place (unhabitat, 2000). Adequacy of a house refers to a house being secure, affordable, accessible, habitable, in a convenient location and one that is culturally adequate. Another right that is violated through homelessness is the right to heath. Everyone has a right to enjoy the highest possible standard of health. However, homeless people do not get the chance to enjoy this right since their state of living does not allow them. Some health problems have been associated to homelessness, for example, depression, substance abuse, mental health, and poor dental health (unhabitat, 2000). Other rights that are violated though homelessness include, right to privacy, right to personal safety, right to education, right to work, right to non-discrimination, right to vote, and right to social security.

Research has shown that homelessness is not just about people sleeping on the streets. There are other people who do not have homes, but do not sleep on the streets. Some homeless people live in temporary accommodations; others live in overcrowded conditions while others live with relatives (Terashima, 2005). The problem, of homelessness, is caused by many reasons, for example, through one losing a job, through relationship breakup and a person is forced to move out, or through children running away from an abusive home life.

Through all these problems that homeless people have faced for many years, bodies that provide finance to aid in helping these people have been impacted by the homelessness (Terashima, 2005). The financial service has been strained through the process of seeking ways to help end the problem, for example, through building homes for the homeless, through the provision of education, through training of the homeless people so that they can be able to do things with their life. All these activities need finance to make them a success.

Through the use of finance in building facilities, for the homeless, and providing education, health services, and training of the homeless, many people have been able to build a bright future for themselves. However, in the long run, the financial services have been affected in the process (Terashima, 2005).

A study carried out showed that homelessness is dragging down America’s local economies. Research has shown that people, who sit in the streets begging for money, usually use the money they get to by alcohol and drugs (Michael, 2007). This has led to massive companies like Wal-Mart, and other companies prohibiting beggars form begging on their poperies. The beggars affect the community as whole since some of them are capable people who can do manual jobs and earn some money to keep them away from the streets. However, instead of working, they walk around the streets begging for money and other end up in facilities built for the homeless, and the financial services need to spend more money on them (Michael, 2007). If the beggars who are able to work would have decided to work and provide for themselves, this would not have only helped in building a nation’s economy, but also in helping reduce the money needed to support the homeless. Thus, it would help in reducing the strain put on financial serviced to homelessness (Michael, 2007).

Through the struggle, of fighting homelessness, more strategies that involve finance have been suggested. Homelessness is a problem that could be brought to an end in the long run, but with the strategies being used currently, it appears as if more finances are being needed. Some people even pretend to be homeless, while, in the real sense, they have their homes, so as to enjoy the free resources the homeless people are provided with at the homeless shelters (Michael, 2007). This, in turn strains the financial service since they have to provide more resources; thus, leading to the need of more finances.


The study will incorporate the use of both questionnaire and interviews as the method of research. The questionnaires will have both close-ended and open-ended questions. The researcher will distribute the questionnaires to the participant and collect them later after thy have been completed.

The interviews will be one on one, where the researcher will carry out the interviews through asking questions and allowing the participants to answer. The interview questions will also be open-ended and close-ended questions. The researcher will also use secondary sources like library materials to gather more information from studies that were already carried out on the topic.

The participant will be chosen form government bodies, nongovernmental bodies and other bodies that deal with homeless people, and the subjects will be chosen randomly. The study will involve 15 participants. After collecting the results, a correlation will be carried out to determine whether there exists any impact of homelessness on financial service.

Ethical consideration

Some ethical issue will be put into consideration before carrying out the study. For example, briefing will be carried out where the researcher will explain to the participant what the study is bout and all the things that make up the study. This will help in creating more confidence in the participants to participate in the study.

Consent from the participant will be sort. After the researcher has explainers the study to the participants, the participants will be given time to decide whether they still want to take part in the study or not.

Confidentiality will be guaranteed to the participants by assuring them that whatever information they share in the study that is private will not be exposed to anybody else, other than the people tang part in the research. In case, a participant will want to withdraw from the study before it is over, no gestations will be made.

Safety will also be guaranteed to the participants, so that harm will not befall them. The researcher will make sure that the positive results of the study will outweigh any harm that may arise from the study.


It is clear that homelessness is an immense problem; however, it is also clear that homelessness affects financial service in a number of ways. Many methods have been suggested, in the past, to help end the problem, but no strategy has been found that would help stop the problem for good. The number keeps oaring up due to many reasons given including, poverty, relationship breakups, and loss of jobs among others (the-homeless, 2012). All the strategies suggested en up incurring more need for finances, yet some do not show any changes in the problem.

Through carrying out this study, some problems may occur, for example, costs, through the use of questionnaires, and travelling to different places to meet the participant to carry out the interviews. Some participants may bail out the last minute; thus, reducing the number initially meant for the study. Homelessness being a critical matter may raise controversies that may delay the study from ending in the time scheduled.

This study might bring out various impacts homelessness has on financial service than expected. Through carrying out the study, better and more convenient strategies of ending homelessness, as compared to those used in the past, may be realized that could later help in stopping the menace. This could be done through looking at the past studies carried out on the topic and finding out why the strategies did not work.

The results will be use full to the bodies involved in homelessness, through providing better methods of solving the problem, and this will also be beneficial to the financial service through providing a better way that will in turn reduce the expenditures, and also in the long run end the menace for good. The problem, of homelessness, is caused by many reasons, for example, through one losing a job, through relationship breakup and a person is forced to move out, or through children running away from an abusive home life. Thus, it is essential that new methods are formulated to help in ending the problem of financial service straining, and of ending the homelessness for good. Methods suggested could include reduction of housing cost, and the homeless, taking initiatives by working if they are able. Homelessness puts a lot of strain on financial services. However, there are ways by which this problem would be solved; thus; reducing the negative impacts that it possess on financial service.


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