They and their children are raised to execute suboptimal reasoning.
I don't think suboptimal reasoning has anything to do with it. For the most part, ignoring people who are poor because of some disability, most poor people are poor because they were not taught good money management skills by their parents, and therefore made bad financial decisions at every possible opportunity by doing what their parents did, with each bad financial decision making things worse for them.
I think that if you presented money management skills to those same kids early on, they would easily be able to handle the actual reasoning required to recognize that those skills are valuable and are a way to avoid being poor long-term. So the real problem is that nobody bothers to give them the facts required to start that reasoning process in the first place, and by the time they realize it, they're deep in debt and their bad habits are so ingrained that it is hard to change them.
We haven't had true home economics classes in high school since my parents were kids, and it shows. We need to bring that back. However, even if we do bring that back, it still isn't enough. IMO, money management skills need to be taught in school starting in first grade when kids learn how to count currency. That way, kids who don't learn those skills from their parents still stand a fighting chance. All it takes is one teacher to change a child's future.