As I read on another thread on this topic, there is an element of future planning, hoping for the best but preparing for the worst.
Increasingly in our social media driven culture, people live right up to their means - ok, you never know what's round the corner, and sometimes you simply don't earn enough to put any money aside. But equally a lot of people have more than 1 child without thinking 'what if...' ditto entering into car lease agreements or buying a house, or having 'nice' holidays, or buying the latest tech.
I'm lucky in that I'm able to work and earn a decent salary. But my OH and I joke that we live 'poorer' than we are. I drive an old car, most of the furniture in my house is either second hand or 15+ years old. I've got a sim only phone contract for £7 a month and a cheap Android smart phone I bought for £50. Even before Covid 19, we didn't do fancy holidays, in fact I've never travelled outside Europe. But as a result I've paid off my mortgage and if I was redundant tomorrow I have enough to live on for maybe 5 years without any other paid income.
Now yes, partly I'm lucky to have got to that position. But I'm only there because I haven't ever had a new or even nearly new car, or spent loads on furnishing and decorating my house, or bought expensive clothes or jewellery. Some (not all) of those people have now been massively affected by Covid as their work has dried up, they've been furloughed or made redundant, and are struggling.
I know also that there are people who've done none of those things, been as financially careful as possible and are still completely broke, because for one reason and another they've never been able to earn enough to improve their financial position.
It certainly isn't black and white - there are people who are their own worst enemies, others are doing their best but lack skills or opportunities to improve their situation. There are families that whatever the household income, would never have enough, children that would sadly always go hungry.