The cycle of poverty or poverty trap theory explains that poverty will continue to their children and grandchildren or to the next generation due to a chain of interconnected and very strong relationships.

The environment, habits within the family, and the money scripts passed down to the next generation make it difficult for children to escape poverty as adults. These factors include fear of investing and a lack of capital, which makes them reluctant to start a business.
Personally, I don't fully support this theory of poverty; not all poor people produce poor generations.