Just to hit on a point grandma made earlier: One persons luxury is another's necessity, how do we decide? I spent time unemployed years ago and while unemployed, I attended yoga classes (which no doubt some of you would consider a luxury), I got chatting to a person in the class who mentioned she knew of some vacancies going and long story short, within 2 weeks I had started the job.
If I didn't have the money to go to those classes, I would never have ended up with that job.
If people only receive enough money to survive, then they can't go out socially and network, or take up hobbies which could lead to a career in that field. They just end up stuck at home and that affects self confidence.