The poor don't work because they are economically rational
crazybear.posterous.com
crazybear.posterous.com
That $1k or so extra that the bottom group spends on education might account for why spending actually goes down as you go from $0-5k to $5-10k.
As for excluding students from poverty numbers, unfortunately I don't think anyone does this. You are correct that they should do this, however.
I'm confused here: where are the non-workers getting this money that they spend?
The article's point is that for many poor people getting a shitty job that only pays enough for rent and food is pointless when you can get rent or food from your parents, or from welfare, or by thrift alone.
My point is that these people have income equivalents that are being elided in this discussion, to its detriment.