Extreme (or absolute) poverty: Living in extreme poverty (less than $1 a day) mean not being able to afford the most basic necessitites to ensure survival. 8 million people a year die from absolute poverty.

Moderate poverty: Moderate poverty, defined as earning about $1 to $2 a day, enables households to just barely meet their basic needs, but they still must forgo many of the things-education, health care-that many of us take for granted. The smallest misfortune (health issue, job loss, etc.) threatens survival.

Relative poverty: Lastly, relative poverty means that a household has an income below the national average.