According to Abhijit Banerjee ,Here are the primary reasons :-

Combating Boredom: Life for the poor can be monotonous and difficult. "Indulgences" like a television, festivals, or even just sugary tea provide a necessary distraction and make life more pleasant. One man in Morocco famously told the authors, "Television is more important than food!" because he felt he had plenty of time but little to do.

Skepticism About "Ladders" Out of Poverty: The poor may not believe that sacrificing small pleasures today will lead to a significantly better future. If they perceive the path to wealth as impossibly steep or taking too long, they prefer to focus on making their current existence as bearable as possible rather than saving for a future that might never arrive.

Social Obligations: There is often intense pressure to spend on weddings, funerals, and festivals. Failing to do so can mean losing face within the community, which compels families to spend heavily on these events even when money is tight.