I've always said there are two types of poverty: budget poverty, and systematic poverty.
Budget poverty is, I'm guessing, what you're talking about. People purchasing luxuries and neglecting necessities. Those with the means to live comfortably, who spend far beyond that and get into trouble.
Systematic poverty is an issue that can't be fixed with budgeting. It's a complicated mess of socioeconomic factors, and here in the US, it seems to often stem from medical bills.
It's fine to be frustrated with the former, but there are some people who don't think the latter exist--that everyone in poverty is only there because they spend beyond their means and therefore poverty is a moral failure of the poor.
Don't be those people.