The poorer you are, the more important each dollar is.
$12,000 is what you'd make annually in BC from welfare, if you can get it.
That is obviously not enough to pay for food and housing.
You're already in the cheapest housing possible.
You're already eating the cheapest food you can get, and probably not enough of it.
Not every penny goes to survival, but only because you wouldn't have enough money to pay for survival anyways.