Why do people become poor?

Many Americans and others around the world become poor because they don't know how to budget their money very well. They decide to spend all their money in one day and forget about the future. Many people don't know how to differentiate between their wants and their needs. They think getting the new technology and stuff is a need when it's not like getting ipods or laptops. Another reason is many people get into way too much debt. One way i will avoid becoming poor is avoid borrowing or getting loans. I will also know how to control my money as well as know what i want and what i need.